Guides

How Do Cryptocurrency Mining Pools Work?

Published

10 months ago

October 26, 2022

admin

Cryptocurrency mining involves two functions: releasing new cryptocurrencies into the system, similar to the discovery of gold, and verifying and adding transactions to the blockchain’s public ledger. It is done using an internet-connected computer usually equipped with special mining hardware and software devices to control and manage the mining process.
Cryptocurrency mining is a computationally intensive process, similar to puzzle solving, requiring high processing power as well as high electricity consumption. The miner who solves the puzzle first places the next block on the blockchain and claims the reward. The reward consists of the miner becoming the owner of the newly issued bitcoins or receiving fees from the transactions made in the block.

Cryptocurrency discovery is configured in such a way that if more miners are working, the difficulty level will increase, while the decrease in the number of miners will decrease the difficulty. Rewards make mining a lucrative business to earn money with. As more and more miners try to grab a piece of the pie, finding new blocks is becoming more computationally difficult, requiring more computing power. This is often impractical and too expensive for individual miners.

Resource Pooling: let’s mine better together

Join a mining pool, which is a collection/group of miners that work together to increase the chances of finding blocks at the pool level, compared to the pool level. individual. Through these pools, miners combine their personal computing resources with the computing resources of other members, which improves their overall processing power and helps to achieve desired results quickly. than.

To do the same, a gold digger with the ability to dig 100 square meters of land in a day would take 100 days to explore one hectare of land in search of gold. Combining 100 gold diggers can complete the job in just 1 day. The discovered gold can be evenly distributed among 100 miners, assuming that all have made an equal effort to explore their designated portion of the land.

Likewise, one could combine nine mining devices, each generating a mining capacity of 335 mega hashes per second (MH/s), to produce a combined output of about 3 giga hashes. Faster output and better chance to discover bitcoin.

However, this package job with higher productivity and higher odds comes with a price to pay. The rewards earned from combined mining are distributed among different members of the pool, compared to the sole ownership of the rewards obtained from individual mining.

Functions of a Mining Pool

A mining pool basically acts as a coordinator for the members of the pool. The functions involve managing the hash of the pool members, seeking rewards through the combined effort of available processing power, recording the work done by each team member, and allocating reward each team member in proportion to the work done after proper verification.
The swimming pool may also charge a fee for each minor member.

The work of each team member can be assigned in two ways. The traditional method is to assign members a unit of work that covers a specific range of nonce, the number that blockchain miners calculate. After the team member completes work on the assigned scope, it places a request for a newly assigned work unit.

The second mining method allows pool members the freedom to choose as much work as they want without any allocation from the pool. This method ensures that no two members use the same range, just as two gold miners should not explore the same area.

It is also possible to have a group of groups, to further improve performance.

How do mining pools share rewards?

Successful determination of the block hash results in a pool reward, which is then shared based on the pool’s sharing mechanism. Share describes the amount of work that a particular member’s computer contributes to the mining pool.

There are two types of actions – accepted and rejected. Accepted shares indicate that the work done by a team member contributes significantly to the discovery of new cryptocurrencies and they are rewarded.

The rejected shares represent work that does not contribute to blockchain discovery and is therefore not paid. Even if a member’s computer runs the job successfully but submits it late for that particular block, this will constitute a rejected job.

Ideally, a team member wants all of their actions to be accepted. However, rejected shares are inevitable as it is not possible that every calculation on a member’s computer is useful for coin discovery and is always submitted on time.

Pool members are rewarded based on their accepted actions for finding a new block of coins. A stock has no real value and it only acts as an accounting method to maintain a fair distribution of rewards.

Based on accepted shares, members are rewarded using a variety of methods including:
Pay Per Share (PPS): Allows instant payouts based solely on accepted shares closed by team members contributors, who are allowed to withdraw their winnings immediately from the available pool balance.

Pay-per share (PPS): Allows instant payout solely based on accepted shares contributed by the pool member, who are allowed to withdraw their earnings instantly from the pool’s existing balance.
Proportional (PROP): At the end of a mining round, a reward that is proportional to the number of the member’s shares with respect to total shares in the pool, is offered.
Shared Maximum Pay Per Share (SMPPS): A method similar to PPS but limits the payout to the maximum that the pool has earned.
Equalized Shared Maximum Pay Per Share (ESMPPS): A method similar to SMPPS, but distributes payments equally among all miners in the bitcoin mining pool.

Final Conclusion

With mining becoming more and more popular, powered by high-speed devices compatible with personal computers, the chances of actual profit from individual mining are decreasing. gradually. Most individuals choose to join a mining pool that allows them to limit their high probability profits, rather than high low probability profits.

Guides

What is Baby AGI: A Comprehensive Guide For Beginners

Published

12 hours ago

August 15, 2023

admin

Artificial Intelligence (AI), an omnipresent force subtly weaving through the fabric of modern life, has ushered in a new era of innovation and automation. From virtual assistants like Siri and Alexa to the sophisticated recommendation engines driving platforms like Netflix and Amazon, AI’s impact is unmistakable. A groundbreaking stride in AI’s evolution is the emergence of Baby Artificial General Intelligence (AGI), an advancement poised to reshape our existence by automating a diverse spectrum of tasks. This article delves into the essence of Baby AGI, its mechanics, and the boundless vistas it opens for application.

Introducing Baby AGI: Pioneering Autonomy and Efficiency

Laying the foundation for an era of self-sustaining AI, Baby AGI is a groundbreaking autonomous agent meticulously crafted using the Python programming language in tandem with the OpenAI and Pinecone APIs. This innovative entity possesses the prowess to independently initiate and execute tasks, effectively revolutionizing workflow dynamics. Much akin to its human counterparts, Baby AGI demonstrates the capacity to learn, comprehend, and execute tasks spanning a myriad of domains, distinguishing itself from the narrower confines of specialized AI.

Exploring Baby AGI’s Boundless Potential

While the infancy of Baby AGI’s journey is undeniable, the scope of its applications is nothing short of prodigious. From crafting literary marvels to orchestrating intricate travel plans, Baby AGI promises the ability to undertake tasks demanding a human-like grasp of context and nuance. Crucially, it is imperative to grasp that Baby AGI doesn’t supersede human intellect; rather, it serves as an invaluable tool for task automation, driving productivity gains across domains.

Embarking on the Journey: Navigating the Prerequisites

Utilizing Baby AGI mandates a trifecta of essentials:

Adequate Hardware: While specific hardware prerequisites remain nebulous, a computer boasting a minimum of 4GB RAM is advised to ensure seamless operations. Optimal hardware guarantees expedient task execution.
API Key Activation: Empowering Baby AGI necessitates procuring API keys from OpenAI and Pinecone. This entails simple steps for key generation.
- OpenAI API Key Generation:
  - Access platform.openai.com, then log in or establish an account.
  - Click the profile icon, selecting “View API Keys.”
  - Create a new secret key with a designated name.
- Pinecone API Key Generation:
  - Visit pinecone.io and access your account or create a new one.
  - Navigate to “API Keys” on the left-hand side, then proceed to generate a new API key.
Stable Connectivity: Unlike offline AI tools, Baby AGI thrives on an unwavering internet connection, underscoring the need for dependable connectivity.

A Comprehensive Guide to Harnessing Baby AGI’s Potential

The journey commences by embracing the steps outlined below:

Step 1: Python Installation

Begin by installing Python, an essential programming language requisite for executing Baby AGI. Visit python.org, acquire the latest version of Python, and follow platform-specific installation guidelines.

Step 2: Acquiring Baby AGI Files

Through your terminal (Mac/Linux) or Command Prompt (Windows), input “git clone https://github.com/yoheinakajima/babyagi.git” and press Enter. This directive triggers the download of imperative Baby AGI components from the designated GitHub repository.

Step 3: Package Installation

Within the downloaded directory, execute “pip install -r requirements.txt” in the terminal or Command Prompt. This single command orchestrates the installation of essential packages, forming the bedrock of Baby AGI’s operational architecture.

Step 4: Configuration Precision

Upon successful package installation, locate and rename the “.env.example” file to “.env”. This configuration file is instrumental in establishing the operational context for Baby AGI.

Step 5: Enabling API Integration

Edit the renamed “.env” file using a text editor to input your OpenAI and Pinecone API keys. These keys imbue Baby AGI with the prowess to interact with external services, accentuating its capabilities.

Step 6: Igniting Baby AGI

Within your terminal or Command Prompt, input “python babyagi.py” and hit Enter. This catalyst sets Baby AGI in motion, ushering in its active presence and potential for interaction.

Step 7: Catalyzing Interaction

Elevate Baby AGI’s prowess by offering input that encapsulates your AI agent’s designation, the focal domain, and the inaugural task you seek to delegate. This framework defines its mission, enabling adept execution guided by your specifications.

A Glimpse of Baby AGI in Action

Illustrating Baby AGI’s potential, envision a scenario where it functions as a cyber insurance underwriter, identifying vulnerabilities primed for cyber insurance claims. Tasked with grasping cyber insurance nuances and dissecting potential linked.com issues, Baby AGI exemplifies task automation at its zenith.

Navigating Current Usage and Future Trajectories

Though yet to infiltrate commercial applications, Baby AGI captivates researchers and pioneers. Yohei Nakajima’s Baby AGI project harnesses machine learning and reinforcement learning, mirroring human growth patterns. Foreseeing the dawn of advanced educational tools and more sophisticated chatbots, the path forward entails overcoming challenges of safety and ethics.

Concluding Remark

Baby AGI crystallizes the zenith of AI evolution, steering us towards the realization of AI agents mirroring human cognition. Pioneering the realm of task automation, this nascent marvel harbors potent potential. Though in its infancy, Baby AGI pledges to empower and reshape the landscape of productivity.

(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of Forbes.)

Guides

What is Wrapped?

Published

5 months ago

March 28, 2023

admin

Wrapped is a term used in the cryptocurrency industry to refer to a digital asset that represents another asset or currency on a different blockchain. This allows users to trade or use assets on one blockchain, while still retaining the value of the asset on its original blockchain.

For example, the Wrapped Bitcoin (WBTC) is an ERC-20 token that represents Bitcoin (BTC) on the Ethereum blockchain. When a user wraps their BTC into WBTC, they receive an equivalent amount of WBTC on the Ethereum blockchain. This allows them to use BTC in Ethereum-based decentralized applications (dapps) or trade BTC on Ethereum-based decentralized exchanges (DEXs) without needing to transfer the actual BTC to the Ethereum blockchain.

The process of wrapping an asset involves locking the original asset on its blockchain and minting an equivalent amount of the wrapped asset on another blockchain. The wrapped asset is then pegged to the original asset’s value, usually through the use of a smart contract. When a user wants to redeem their wrapped asset for the original asset, the wrapped asset is burned, and the original asset is released back to the user.

Wrapped assets are useful because they allow for interoperability between different blockchains and can increase liquidity and trading volumes for certain assets. They can also enable new use cases for assets that were previously restricted to a specific blockchain.

In addition to WBTC, there are many other wrapped assets, including Wrapped Ether (WETH), Wrapped Litecoin (WLTC), and many others.

Guides

What is Wash Trading?

Published

5 months ago

March 28, 2023

admin

Wash trading is a practice that involves buying and selling a cryptocurrency asset for the purpose of creating the impression of greater market activity and trading volume than actually exists. It involves a trader simultaneously buying and selling the same asset to manipulate the price and create a false sense of demand and liquidity.

In the context of cryptocurrencies, wash trading is a fraudulent activity that can deceive investors and traders into thinking that a particular asset is more popular and valuable than it really is. This can lead to an artificial price increase, which can be exploited by the traders involved in the wash trading scheme.

Wash trading is typically used by unscrupulous traders and market manipulators who want to artificially inflate trading volumes or prices to attract other investors or traders to buy the asset. It is also sometimes used to manipulate prices to trigger stop-loss orders or liquidations, which can cause panic selling and create opportunities for the wash traders to profit.

Wash trading is illegal in traditional financial markets, and many jurisdictions have laws against it. In the crypto industry, some exchanges and regulators have taken steps to crack down on wash trading, including implementing monitoring tools to detect and prevent it.

Investors and traders should be cautious of assets with unusually high trading volumes, as they may be subject to wash trading. It’s important to do your own research and use reliable sources of information before investing in any cryptocurrency.