Litecoin mining bsd7

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See the Litecoin Association's introductory video to Litecoin. Just like its older brother Bitcoin, Litecoin is an online network that people can use to send payments from one person to another.

Litecoin is peer-to-peer and decentralized, meaning that it is not controlled by any single entity or government. The payment system does not handle physical currencies, like the dollar or the euro; instead, it uses its own unit of account, litecoin mining bsd7 is also called litecoin symbol: This is why you will often see Litecoin categorized as a virtual or digital currency. Litecoins can be bought and sold for traditional money at a variety of exchanges available online. If you already know Bitcoin, Litecoin is very similar, the two main differences being that it has faster confirmation times and it uses a different hashing litecoin mining bsd7.

Miners assemble all new transactions appearing on the Litecoin network into large bundles called blockswhich collectively constitute an authoritative record of all transactions ever made, the blockchain. The way Litecoin makes sure there is only one blockchain is by making blocks really hard to litecoin mining bsd7. So instead of just litecoin mining bsd7 able to make blocks at will, miners have to produce a cryptographic hash of the block that meets certain criteria, and the only way to find one is to try computing many of them until you get lucky and find one that works.

This process is referred to as hashing. The miner that successfully creates a block is rewarded with 25 freshly minted litecoins.

Every few days, the difficulty of the criteria for litecoin mining bsd7 hash is adjusted litecoin mining bsd7 on how frequently blocks are appearing, so more competition between miners equals more work litecoin mining bsd7 to find a block. This network difficultyso called because it is the same for all miners, can be quantified by a number; right now, litecoin mining bsd7 is 9, Litecoin mining can be profitable, but only under certain conditions.

The introduction of specialized mining hardware commonly referred to as ASICswhich can mine much faster and much more efficiently, has made finding blocks much harder with general-purpose hardware. Unfortunately, ASIC hardware is far from being a sure-fire investment either. Potential buyers should be extremely careful, as various elements should be considered:. Good starting points are LitecoinTalk. Litecoin mining bsd7 feel like investing in expensive hardware?

Not everyone needs to be a miner. In fact, the easiest way to get started with Litecoin is to buy some at an exchange. As we've seen above, finding a block is very hard. Even with powerful hardware, it could take a solo miner months, or even years! This is why mining pools were invented: Pool users earn shares by submitting valid proofs of work, and are then rewarded according to the amount of work they contributed to solving a block. The reward systems used by mining pools can be roughly subdivided into two categories: Choosing a mining pool can be a very personal decision, and several factors should be taken into consideration, including features, reliability, reputability, and user support.

ASIC devices usually come with mining software preinstalled on an integrated controller, and require little to no configuration. All the information you need to connect to the pool is available on our Help page. If you have decided to do some CPU mining just for the fun of it, since as we've seen above you are not going to make any profityou should download Pooler's cpuminer. Therefore, unless you're a historian doing research on the early days of Litecoin, GPU mining litecoin mining bsd7 almost certainly a bad idea.

This page is for you. Should You Mine Litecoins? Potential buyers should be extremely careful, as various elements should be considered: For this reason, it is important to make a realistic litecoin mining bsd7 of how the difficulty will evolve in the near future. ASIC hardware can mine litecoins extremely efficiently, but that's all it can litecoin mining bsd7.

It cannot be refitted for other purposes, so the resale value is very low. In particular, there have been many horror stories about preordering mining hardware. What are Mining Pools? Proportional systems are round-based: A purely proportional system can unfortunately be easily cheated by pool hoppingwhich is why more elaborate versions like PPLNS and DGM have been invented. In a pay-per-share PPS system, users are not rewarded based on how many blocks the pool actually finds, but rather on how many blocks the pool was expected to find given the amount of work done by its users.

The pool pays a fixed amount of litecoins for each valid shares its users submit, based on the mathematical laws of probability. The main advantage of this system is that users can enjoy steady payouts and minimal variance, and don't have to wait for blocks to be found and confirmed. The downside is that the pool operator has litecoin mining bsd7 take on the risk of bad luck, so running a PPS pool can be financially risky. What Software to Use?

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