Is the current network difficulty algorithm appropriate for “Peak transaction-only mining”?

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An interesting question, but I don't think block difficulty is aimed to solve this problem. However, I anticipate that the free market would solve the question as posed.

In short, if we have an off-peak hour that provides a lower expectation of BTC per hour in transaction fees, then we will see the miners with higher costs per hour in operation drop out. In an ideal economic world, equilibrium will be reached when the value of the block's transactions fees equals the sum of the highest cost per hash miner still mining multiplied the remaining hashing power. (In short, equilibrium will be reached when enough miners drop out that the remaining miners can make money. In the real world, some miners may not be able to react quickly enough to decide whether to hash a block or not or you might have some hobbyists that hash regardless of whether it is profitable, but it should be close enough to reach an equilibrium.)

There are two interesting parts to this the question in my...

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I understand that there is incentive to include transactions where the output is less than the input so that the block creator can pocket the difference. But I'm wondering if that is really worthwhile in terms of hashing rate?

I know that overall having transactions is a good thing for the currency, but what if a particular miner only cares about their block finder's reward?

This is my understanding of the hashing process: SHA256 process (image from Coursera Bitcoin course)

The hash input is split into 512-bit input-blocks, and then the compression function (in yellow) is run once for each input-block (including the output of the previous result).

Assuming that the smallest possible bitcoin-block is < 1024 bits (please correct me if I'm off), then hashing for no transactions will take 4 compressions.

AFAIK, the largest block size is 1MiB, or 8,000,000 bits, requiring 15,625 compression functions, more than 3,900 times longer than for a...

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I sincerely doubt that there is such a thing: If there were a coin with high demand, more people would mine it and mining would get more competitive. Making a coin CPU minable only, allows botnets to dominate mining, hence making mining more competitive. In general whenever mining is profitable, it will become more competitive until it is only for those at an advantage. – There is no such thing as a free lunch.

There might be some obscure altcoins that can be mined profitably, but as any of them may go bust over night, and profitability keeps shifting from one to the other, you'll spend as much time reading, reconfiguring and trading that it'll be unprofitable concerning your time-investment.

You'll probably be able to pick two out of three at most: low risk, high profitabity, low time-investment.

But hey, that's just why I think it's not worth looking into, I might be...

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You can use a mining calculator to compare the available hardware's output, then add fixed cost (hardware) and variable cost (the cost of manpower, power, replacements, maintenance, etc).

I am assuming you mean ASIC mining cost, as GPU mining has not been profitable for bitcoin for quite some time. I found a site which keeps track of ASIC deployment and also provides a mining calculator: http://minr.info/

Generally miners do a lot of work to find places with cheap power, you can find kWh rates here: http://en.wikipedia.org/wiki/Electricity_pricing#Price_comparison

Even though this may seem unrelated, miners can also use GPU or Scrypt ASICs to generate alternate coins (and then convert them to bitcoin), which may be cheaper than generating/buying bitcoins. You can find a lot of information about various algorithms and a mining calculator for many alternative algorithms here: http://www.coinwarz.com/cryptocurrency

Beyond all of this, it is worth noting...

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- 55 - http://www.ivypub.org/cst

Transactions on Computer Science and Technology

December 2013, Volume 2, Issue 4, PP.55-61

Network on Chip-based Fault Tolerant Routing Algorithm and Its Implementation

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Shuyan Jiang

, Shanshan Jiang, Peng Liu, Yue Liu, He Cheng

School of Automation Engineering, University of Electronic Science & Technology of China, Chengdu, Sichuan, China

Email:

542767381@qq.com

Abstract

In this paper, a new fault-tolerant routing algorithm is presented in order to effectively improve the fault-tolerant performance of NoC. Based on a classical XY dimension routing algorithm, this design realizes a fault-tolerant routing algorithm of a single routing error by increasing its adaptability, and maintains the advantages of the XY routing algorithm, such as simpleness, hardware overhead, and scalability. Then a 3*3 structure of 2D-mesh Noc is simulated in...

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The word mining originates in the context of the gold analogy for crypto currencies. Gold or precious metals are scarce, so are digital tokens, and the only way to increase the total volume is through mining it. This is appropriate to the extent that in Ethereum too, the only mode of issuance post launch is via the mining. Unlike these examples however, mining is also the way to secure the network by creating, verifying, publishing and propagating blocks in the blockchain.

Mining Ether = Securing the network = verify computation

So what is mining anyway?

Ethereum Frontier like all blockchain technologies uses an incentive-driven model of security. Consensus is based on choosing the block with the highest total difficulty. Miners produce blocks which the others check for validity. Among other well-formedness criteria, a block is only valid if it contains proof of work (PoW) of a given difficulty. Note that in Ethereum 1.1, this is likely going to be replaced by a...

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