Оглавление
Peter Kent. Cryptocurrency Mining For Dummies
Cryptocurrency Mining For Dummies® To view this book's Cheat Sheet, simply go to www.dummies.com and search for “Cryptocurrency Mining For Dummies Cheat Sheet” in the Search box. Table of Contents
List of Tables
List of Illustrations
Guide
Pages
Introduction
About This Book
Foolish Assumptions
Icons Used in This Book
Beyond the Book
Where to Go from Here
Getting Started with Cryptocurrency Mining
Cryptocurrency Explained
A Short History of Digital Dollars
First, take the Internet
Add credit card confusion
Add a dash of David Chaum
Result? DigiCash, E-Gold, Millicent, CyberCash, and More
The Bitcoin white paper
Bitcoin: The first blockchain app
Who (or what) is Satoshi Nakamoto?
What’s the Blockchain?
Blockchain around the world — the blockchain network
Hashing: “Fingerprinting” blocks
Blockchain is “immutable”
Where’s the Money?
FINDING THE BALANCE IN THE BLOCKCHAIN
What’s the Crypto in Cryptocurrency?
ENCRYPTED BLOCKCHAINS
Public Key Encryption Magic
Messages to the blockchain
Signing messages with the private key
The blockchain address — your money’s home
Sending a transaction message
MESSAGE TO THE BLOCKCHAIN
Unraveling the message
WHOEVER OWNS THE PRIVATE KEYS OWNS THE MONEY
PSEUDONYMOUS CRYPTOCURRENCIES
The Basic Components of Cryptocurrency
What’s in a wallet?
Private keys create public keys
Public keys create blockchain addresses
The private key controls the address
“FORKING” CRYPTOCURRENCIES
Where Does Crypto Come From? The Crypto Mines (Sometimes)
Understanding Cryptocurrency Mining
Understanding Decentralized Currencies
SO WHY IS THE PROCESS CALLED MINING?
Exploring the Role of the Crypto Miner
Making Cryptocurrency Trustworthy
Reaching Agreement through Consensus Algorithms
Looking at the Cryptocurrency Miner
ASIC SCHMASIC
Making the Crypto World Go ‘Round
Building Blocks: The Transaction’s Journey to the Blockchain
The Cryptocurrency Network
Submitting Transactions
Looking at transaction fees
Change address
PUBLIC KEY ENCRYPTION
Verifying the transaction
Competing for Bitcoin, the ten-minute contest
HASHING?
Winning the Bitcoin
BITCOIN PRESETS
Exploring the Different Forms of Mining
Proof-of-Work Algorithms
Proof-of-work applications
Proof-of-work examples
Upsides
Downsides
Proof-of-Stake Algorithms
Proof of stake explained
MINERS AND VALIDATORS
Proof-of-stake selections
PoS example cryptocurrencies
Upsides
Downsides
CHAIN TIP
Hybrid Proof of Stake/Proof of Work
Hybrids explained
HYBRID PROOF-OF-STAKE/PROOF-OF-WORK REWARDS
Hybridized examples
Upsides
MASTERNODES
Downsides
Delegated Proof of Stake
Delegated Byzantine Fault Tolerance
Proof of Burn
And More …
The Evolution of Cryptocurrency Mining
The Evolution of Mining
Proof of Work Mining Evolution
CPU mining
Adoption of GPUs
Rise of the FPGAs
Dominance and efficiency of ASICs
WHY NOT EXAHASHES?
The Days of Solo Mining
Pool Mining
What is a mining pool?
Choosing a pool
Pros and cons of pool mining
Cloud Mining
Pool mining versus cloud mining
Pros and cons of cloud mining
The Future of Cryptocurrency Mining
Incentivization of Energy Exploration
Underutilized hydroelectric dams
Oil and gas flaring
Continued Computational Efficiency Improvements
Doing more with less
Approaching the limits of physics
Corporate and Nation State Participation
Nation states
Corporations
Future speculation
The Mythical Miner Death Spiral
Block difficulty
Block difficulty adjustment algorithm
Miners of last resort
CRYPTO ANARCHISTS!
Becoming a Cryptocurrency Miner
Mining Made Simple: Finding a Pool and Preparing an Account
Understanding How Pool Mining Works
Choosing a Pool
Pools that are good starting points
A few of the largest pools
Bitcoin (BTC)
Litecoin (LTC)
Ethereum (ETH)
Zcash (ZEC)
Monero (XMR)
Incentives and rewards
Pool ideology
Pool reputation
Pool fees
Pool percentage of the total network
Setting Up a Pool Account
Server choice
Mining equipment pool settings
Payout addresses
Payout thresholds
Researching Mining Pools
Cloud Mining
Working with Cudo Miner
Picking a Cryptocurrency to Mine
Determining Your Goal
Mineable? PoW? PoS?
Researching Cryptocurrencies
Mining profitability comparison sites
Algorithms and cryptocurrencies
HASH RATE UNITS
Algorithms requiring a specialized ASIC
Algorithms that may be mined without ASICs
CPU VERSUS GPU VERSUS APU VERSUS ASIC
The cryptocurrency’s details page
Mining-profit calculators
HASH POWER ENVY? YOU’D BETTER POOL MINE
The cryptocurrency’s home page
GitHub
The cryptocurrency’s Wikipedia page
Mining forums
Going Deep
Longevity of a cryptocurrency
Hash rate and cryptocurrency security
Community support
METCALFE’S LAW
Knowing That Decentralization Is a Good Thing
Finding Out It’s an Iterative Process
Gathering Your Mining Gear
Selecting the Correct Computational Mining Hardware
Specified hash rate
Specified power consumption
Equipment cost and other considerations
Length of time your hardware will be viable
Mining Equipment Manufacturers
ASIC rig producers
Mining container producers
GPU rig producers
Finding a Wallet to Store and Protect Your Private Keys
Where to Mine? Selecting a Viable Location
Vet your home for cryptocurrency mining
Communication requirements
Traditional Internet access
SATELLITE BLOCKCHAIN?
Satellite access
Power source thoughts
Power delivery units
Power supplies
Existing electrical infrastructure versus new installations
Data centers and other dedicated commercial locations
Upsides
Downsides
Setting Up Your Mining Hardware
ASIC Mining Rigs
Racks
Power supply
PDUs
Network and Ethernet connection
A computer to control your rig
GPU Mining Rigs
Getting your GPU rig online
Building your own GPU miner
Mining rig frame
Motherboard
Central processing unit
Graphical processing units
Riser card and cables
Memory
Power supply
Hard drive
Fans
An operating system, mouse, keyboard, and screen
CPU Mining
Mining Software
Pool mining
FPGA?
Solo mining
The Economics of Mining
Running the Numbers: Is It Worth It?
Factors That Determine Mining Profitability
Cost of equipment
Hash rate of your equipment
ASIC manufacturer ratings
Processor benchmarking sites
HASHES VERSUS SOLUTIONS
Mining pools
Downloadable processor testers
Mining rig efficiency
Hash-rate capability
Efficiency
Cost of maintenance
Cost of facilities
Cost of electricity
Measuring your power consumption
Finding the cost of electricity
Estimating monthly energy usage and cost
Total network hash rate
Information about your pool
Block earnings
Cryptocurrency conversion rate
Calculating Your ROI
Your block earnings
Calculating for solo mining
QUICK CONVERSION
Calculating for pool mining
Your expenses
Calculating ROI
Knowing the unknowns
Online profitability calculators
Historical estimates
Reducing Negatives and Gaining an Edge
Profitability through Efficiency
Upgrading aging equipment
Mining different cryptocurrencies
Using exhaust heat
CREATIVE USES FOR HEAT DISCHARGE
Reducing electricity bills
Utility rate structures
Alternative energy sources
Knowledge Is Power
Why current events are important
The “fork wars”
REPLAY PROTECTION
Your forking decisions
What do you mine?
ANOTHER PROBLEM WITH CUSTODIAL WALLETS
What should you do with your new cryptocurrency?
In general, forks die
Here Today, Gone Tomorrow
Evaluating Your Mining Resources
Increasing mining competition
Increasing block difficulty
Diminishing returns due to halving events
Running Your Cryptocurrency Business
What to Do with Your Mined Cryptocurrency
Convert your cryptocurrency
Buying equipment and paying bills
Paying with crypto when you can’t pay with crypto
Expand or upgrade your mining operation
But don’t forget the tax
Hodling your cryptocurrency
LAW-ABIDING TAXPAYER, OR CRYPTO ANARCHIST?
Invest your cryptocurrency
Donate your cryptocurrency to charity
Gift your cryptocurrency
Determining When to Sell
Cryptocurrency market indicators
Where to sell: Cryptocurrency exchanges
Dollar Cost Averaging
Dollar cost averaging your purchases
Cost averaging your exits
Custodial exchange risk
Tax and Your Mining Business
But you’re mining, not investing
It gets complicated
Scaling Up?
Do not overextend
Milestones to meet before you reinvest
Planning your expansion
The Part of Tens
Ten (or So) Tips for When the Market Dips
Have a Plan, Hedge Your Mine
How Long Can You Last?
Learn from Market History
Don’t Panic! (Keep Calm and Carry On?)
Buy the Dip
Look for the Advantages
Anticipate the Market Recovery
Learn From Your First Dip
Consider Market Volatility
Switch to Another Cryptocurrency
Stop Mining!
These are simple calculations
Stop or go?
Ten Ways to Boost Your Return on Investment
Doing Your Homework
Timing Your Entry
Playing the Markets
Identifying Low Hash Rate Alternative Cryptocurrencies
Mining the Start of a Chain
Starting Small
Scaling Choices
Finding Cheap Electricity
Cooling Efficiently
Scoring Hardware Deals
Ten Types of Cryptocurrency Resources
Cryptocurrency Market Trackers
Mining Profitability Estimation Tools
Cryptocurrency Reddit Pages
Blockchain Explorers
Data Visualizations
Cryptocurrency Data and Statistics
Cryptocurrency Wikis
Cryptocurrency White Papers
The Satoshi Nakamoto Institute
A Cypherpunk’s Manifesto
Bitcoin Guides and Walkthroughs
Ten Criticisms of Cryptocurrencies and Mining
Energy Consumption
Wasted Processing
Scalability, Transaction Speed, and Throughput
Coin Distribution Fairness
Market Bubbles and Volatility
Centralization
Scams and Rip-offs
Hardware Price Inflation and Scarcity
Fire Hazards
Neighbor Complaints
Index. A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
About the Authors
Dedication
Author’s Acknowledgments
WILEY END USER LICENSE AGREEMENT
