Ghash.io AUR - Crypto Mining Blog

If the main reason people use GHash is zero fees, can we create other zero fee mining pools to increase diversity?

We (Coinbase) would be interested in running one for example - what good open source software exists to spin one up quickly? Would miners switch?
The only good counterargument I've heard of this is that: "It is a Tragedy of the Commons. Mining at http://GHash.io is preferable, because not only does it have no fees, as the largest pool it has the least variance in pay. As a miner, having a consistent payout for your work is very important."
It seems like diminishing returns to that though, if you are mining for any reasonable amount of time (a couple days at least) variance seems to be a smaller factor. Let's say your pool is averaging 1 block mined a day (about half a percent of mining power). You'd still get decent variance over a period of a week.
What other benefits could a zero fee mining pool offer to compete and help bring stability to the ecosystem (donation based additional payouts from the community to miners who switch, free advertising on the mining pools website, etc).
submitted by bdarmstrong to Bitcoin [link] [comments]

How many of you mine at ghash.io?

Is there any particular reason why you don't leave it?
submitted by usrn to BitcoinMining [link] [comments]

BEWARE: There are stories and reviews of mining pools being posted that seem like advertorials and have wrong info.

I recently have been reading a string of "reviews" about mining pools and they seem to have wrong info about earning. I switched my 4TH over to the Bitcoin Affiliate Network pool which promised me a 10% overage from the current pool I mine at which is Ghash.io and I saw a dramatic drop in daily earnings just in bitcoin alone. Then you also have the fact that ghash and other pools do merged mining that gives you more coin in the end so they have beat the other pool hands down. I am sorry for not having exact numbers but just know that it was dramatically different. I am now doing a 24 hour test and writing down the proceeds I receive so I can be exact and I will update here.
submitted by apollojmr to BitcoinMining [link] [comments]

GHash.IO/CEX.IO and double-spending against BetCoin Dice

you should read this:https://bitcointalk.org/index.php?topic=327767.0
or at least this quotes:
Source: RoadTrain - https://bitcointalk.org/index.php?topic=321630.msg3445371#msg3445371
Transalating my post from russian subforum https://bitcointalk.org/index.php?topic=321444.0
Like a month ago, in September I witnessed a lot of double-spending against BetCoin Dice. It happened between 25th and 27th Sept.
The mechanism was simple: send betcoin a tx wit 0 fee, then wait for a result tx, if your bet is a win, then confirm your tx, otherwise double-spend it.
  1. Here I'll give you a bunch of transactions which you can examine. Note this is a chain of transactions, so just click on outputs to see. https://blockchain.info/tx/4d731074447f02609c3110a187f9c6976f2bf255288ec5666ee270f09679619d https://blockchain.info/tx/e0b44f68441ea0bad0f7694f735f496ce05238862534c6fea737b8903921185a The double-spending of losing bets was performed by someone mining to https://blockchain.info/address/1MA7CKbWMyKdPkmsbnwmfeLh1hYy5A3gy8 , you can check it yourself.
  2. I tracked coins down to the origin https://blockchain.info/tx/154ecb1eb72c933bc0707fa70deceb688361554ab81b901673d308aa84d9cfe9 The most interesting address here is 12PcHjajFJmDqz28yv4PEvBF4aJiFMuTFD It's been involved in similar actions, look at this chain of win-only tx's https://blockchain.info/tx/0c1a08d035862b01d075e8044b1e9ce52a8ad951b57d876a2a9a0e3502c41eb0 And the most interesting fact is that these zero-fee tx's inbetween winning ones were mined by ghash.io exclusively. Possibly this was a test attack.
  3. Going further, I found the address the earnings from attack were sent to: 12e8322A9YqPbGBzFU6zXqn7KuBEHrpAAv https://blockchain.info/tx/292e7354fbca1847f0cbdc87a7d62bc37e58e8b6fa773ef4846b959f28c42910 And then part of these funds (125 BTC) was sent to ghash.io's mining address: https://blockchain.info/tx/48168cf655d0ac0c7c2733288ca72e69ecd515a9a0ab2821087eb33deb7c6962
  4. Furthermore, I checked the funds mined to 1MA7CKbWMyKdPkmsbnwmfeLh1hYy5A3gy8 In these 2 succeeding tx's they were moved to 199kVcHrLdouz9k9iW3jh1kpL7j9nLg7pn https://blockchain.info/tx/e567ad6232de5285e0dc211d3f1c489b1e00e509118ba98a4825529d0a9197d9 https://blockchain.info/tx/faa7bc8b99376efa774045e79b42771fe668341b00290a61cd416992571c590d This address is interesting, because it contains 6000 BTC and ~30% of funds come from ghash.io mining address. https://blockchain.info/taint/199kVcHrLdouz9k9iW3jh1kpL7j9nLg7pn
  5. And the last thing to spot: GHash.io, being about 25% of network back then, didn't find a single block to its address between 25th and 27th of september! https://blockchain.info/address/1CjPR7Z5ZSyWk6WtXvSFgkptmpoi4UM9BC?offset=1350&filter=2
I'm not jumping on conclusions, but these actions require public attention. Comment here if you have anything to say.
now the answer from ghash/cex: https://bitcointalk.org/index.php?topic=318010.msg3590355#msg3590355
CEX.IO official statement:
In October the development of the “GHash.IO” project was transferred to the CEX.IO development team.
The team worked hard to completely rewrite the whole GHash.IO engine, as well as perform other stability and responsiveness improvements, which you all may have noticed. We have also removed the 3% fee and released merged-mining alt coins to the miners.
We would like to state that CEX.IO does not have any affiliation with the double-spending attack. As a part of the bitcoin community we condemn such actions, which harm the bitcoin network.
We have conducted an internal investigation and can confirm, that from the 25th to 27th of September, the GHash.IO pool was mining on the address: 1MA7CKbWMyKdPkmsbnwmfeLh1hYy5A3gy8 to which we do not have any access or connection.
However, the rewards for mined blocks on the above mentioned address were paid out from the GHash.IO wallet as per usual.
Following further investigation and server log analysis we have noticed that several private keys were imported to the GHash.IO wallet within that time period. (exact date could not be determined). This was done to conceal the missing bitcoins, since there was no direct deposit transaction.
We haven’t found any signs of the system being compromised, but we believe that the attack was made from within the former development team.
At the moment CEX.IO LTD is the lawful owner of the CEX.IO and GHash.IO projects as well as their domains.
Our team at CEX.IO LTD. will do everything possible to prevent pool capacity manipulation in the future.
We understand the communities’ concern about the misconduct of such great computing power at our pool (since recently we have become the #1 pool), and we will gladly take into consideration any comments or suggestions to improve the pool’s security and overall quality of service.
submitted by CeeCeeCee to Bitcoin [link] [comments]

GHash.IO official statement (Formatted for reddit)

Content of the pdf/statement formatted for reddit. From their twitter feed https://twitter.com/cex_io/status/421334549726244864
Bitcoin mining pool GHash.IO is preventing accumulation of 51% of all hashing power !
GHash.IO, the worlds largest and most powerful mining pool, has entered 2014 with overall hashing power of over 40%, making it the #1 pool currently in the Bitcoin network.
The pool has gained significant hashing power due to the 0% pool fee, merged mining of alt coins, excellent real-time data presentation as well as quality 24/7/365 support service.
The hashing power of GHash.IO consists of:
Although the increase of hash-power in the pool is considered to be a good thing, reaching 51% of all hashing power is serious threat to the bitcoin community. GHash.IO will take all necessary precautions to prevent reaching 51% of all hashing power, in order to maintain stability of the bitcoin network.
We have put a plan in place to see that 51% of all hashing power, will not be maintained by Ghash.IO by executing the following actions:
We will not be implementing a pool fee, as we believe the pool has to remain free.
GHash.IO does not have any intentions to execute a 51% attack, as it will do serious damage to the Bitcoin community, of which we are part of. On the contrary, our plans are to expand the bitcoin community as well as utilise the hashing power to develop a greater bitcoin economic structure. If something happened to Bitcoin as a whole it could risk our investments in physical hardware, damage those who love Bitcoin and we see no benefit from having 51% stake in mining.
Our plans are to develop additional services, to help expand the use of bitcoins. The services include, but not limited to:
Non-standard transactions, such as mentioned above, can not be relayed to the blockchain network, however they are still valid, and can be mined using the hashing power accumulated on GHash.IO.
Feedback is more than welcome.
For additional information, please contact [email protected]
Media Contact: Jeffrey Smith
submitted by Timbo925 to Bitcoin [link] [comments]

GHash.IO Press Release: Bitcoin mining pool GHash.IO is preventing accumulation of 51% of all hashing power

https://ghash.io/ghashio_press_release.pdf
Bitcoin mining pool GHash.IO is preventing accumulation of 51% of all hashing power.
GHash.IO, the worlds largest and most powerful mining pool, has entered 2014 with overall hashing power of over 40%, making it the #1 pool currently in the Bitcoin network.
The pool has gained significant hashing power due to the 0% pool fee, merged mining of alt coins, excellent real-time data presentation as well as quality 24/7/365 support service.
The hashing power of GHash.IO consists of:
•~45% BitFury ASIC based miners
•~55% independent miners
Although the increase of hash-power in the pool is considered to be a good thing, reaching 51% of all hashing power is serious threat to the bitcoin community. GHash.IO will take all necessary precautions to prevent reaching 51% of all hashing power, in order to maintain stability of the bitcoin network.
We have put a plan in place to see that 51% of all hashing power, will not be maintained by Ghash.IO by executing the following actions:
•We will temporarily stop accepting new independent mining facilities to the Ghash.IO pool.
•We will implement a feature, allowing CEX.IO users to mine bitcoins from other pools. So when they purchase GH/s they can put it towards any pool they choose.
•We will not be implementing a pool fee, as we believe the pool has to remain free.
GHash.IO does not have any intentions to execute a 51% attack, as it will do serious damage to the Bitcoin community, of which we are part of. On the contrary, our plans are to expand the bitcoin community as well as utilise the hashing power to develop a greater bitcoin economic structure. If something happened to Bitcoin as a whole it could risk our investments in physical hardware, damage those who love Bitcoin and we see no benefit from having 51% stake in mining.
Our plans are to develop additional services, to help expand the use of bitcoins. The services include, but not limited to:
•A bitcoin payment system, which utilises the extended features of the bitcoin protocol. (https://en.bitcoin.it/wiki/Bitcoin_Improvement_Proposals)
•An escrow service, which will help secure transactions between members of the bitcoin community
•Micro-payments aggregation, which will enable users to receive small amounts of Bitcoins from third parties.
•Instant bitcoin payments for merchants, which will increase the share of Bitcoin e-commerce transactions in the global economy
•Non-standard transactions, such as mentioned above, can not be relayed to the blockchain network, however they are still valid, and can be mined using the hashing power accumulated on GHash.IO.
Feedbackis more than welcome.
For additional information, please contact [email protected]
Media Contact: Jeffrey Smith
submitted by Larry-Jonson to Bitcoin [link] [comments]

Petamine willing to move to P2Pool

Just received this email from Petamine.
They are willing to switch to P2Pool, which would be a big boost for P2Pool, and help decentralized mining, as well as being the first (to my knowledge) cloud service to switch. I bought PETA shares just to vote yes on this. If you own PETA shares, vote for the move to P2Pool.
Dear unit holders,
Details about this week’s dividend payout:
337.48511399 BTC in total from mining and converted NMC’s
We announced to further examine and experiment with p2pool last week. We have set up our own p2pool node ( http://pool.petamine.co:9332/static/ ) and after several days of testing we can confirm that it is running stable and are ready to direct the entire PetaMine to p2pool.
Therefore we are issuing a vote whether or not to switch to p2pool. The vote will only be valid for current unit holders and held until Wednesday, June 25th 2014 - 12:00 GMT. Votes will be weighted based on the amount of units of each individual unit holder. Based on outcome, we will direct our hashrate to p2pool.
Click the link below to place your vote:
https://nl.surveymonkey.com/s/5KVLXD3
Take a look at our public p2pool node (0% fee, so you are welcome to join):
http://pool.petamine.co:9332/static/
Important issues to consider:
A small pool has much more variance, which has a direct effect on block finding and payouts. Currently p2pool has a pool hashrate of 600 TH/s, together with PetaMine the pool rate would rise to about 1.8 PetaHash. The variance of finding a block with p2pool will be much higher than our current pool ghash.io.
Our node will merge mine Namecoin but as p2pool does not support combined merged mining with other nodes, our node will solo mine Namecoins.
We look forward to your vote and to help making bitcoin mining more decentralized.
Team CryptX
submitted by wretcheddawn to Bitcoin [link] [comments]

A few thoughts - Sunday, June 8, 2014

A few thoughts:

A quick shout-out

Have you noticed yruafraid's new banner? It's exceptional, and he deserves some praise for it.
Does anyone have an idea as to what we should use for flairs? "Bullish" or "bearish" could be copied. There could also be many flairs, one for each altcoin, so people can show which coins they are interested in. There could also be a list of issues that people are concerned about and you could choose between them. Can there be multiple flairs per person?

The Blake hashing algorithm

I was asked to give my thoughts on the Blake hashing algorithm, which is being used for several of the newer altcoins. Proponents of this algorithm claim that it uses less electricity than other algorithms, and that it can be used to "merge mine" multiple coins at the same time.
"Merge mining" is an interesting conundrum. If you are creating a new great altcoin, then you obviously want it to be the only altcoin, or one of the few altcoins, that survive. But the purpose of merge mining is supposedly to increase the security of many coins by allowing people to earn money by mining all of them simultaneously. Therefore, by merge mining, you effectively acknowledge that your coin is unlikely to gain traction, and that you need others' help to secure it.
Merge mining doesn't address the security issue as much as one thinks, however. In fact, it could be a disaster. Huge pools are going to start to add all of the Blake coins to them. Then, a pool like GHash.io could form and end up with more than 50% of the hashing power - except that it now controls the majority of the hashing power for 100 coins, and could take out both junk coins and popular coins at the same time.
Merge mining seems like it could be dangerous, because it means giving up control of your coin to external actors who care nothing whatsoever about your security.

The seduction community

The seduction community, hosted at /seduction and http://pua-zone.com, among other places, is a community that teaches its members how to seduce women (and there are some women who talk about how to seduce men as well).
It was brought to my attention that many people who started out in the seduction community left that community and turned their attentions to bitcoins. I myself posted an "anti-seduction community" blog in 2005, and some of the big names in the bitcoin community were once seduction gurus.
I wonder what it is in bitcoins (other than the fact that they are more interesting than dating) that has drawn a lot of people to leave the seduction community and change their posts or even careers.

GHash.io and its hashrate

Every few months, GHash.io starts inching up towards a 50% hashrate on the bitcoin network, there is a panic, and they fall back down.
I myself disapprove of GHash.io because they are anonymous cowards. Anyone who runs an operation where millions of dollars are changing hands and doesn't reveal his name is not to be trusted. It is imperative that people leave their pool.
But many people aren't going to leave it because they don't charge any fees. Why would anyone be incentivized to leave a pool that charges nothing and has the lowest variance? This brings up what GHash.io's business model exactly is. They aren't spending thousands on hardware just to be nice.
Instead, they have an alternate business model that relies on being able to find blocks. Perhaps they want to undo transactions, or add on additional blockchain features. Since they are anonymous, they can do whatever they want with impunity, and their anonymity, not how much hashrate they have, is their biggest flaw.

Other

submitted by quintin3265 to BitcoinThoughts [link] [comments]

Some questions about running a P2Pool node

So after the ghash.io scare and me getting a new shiny vserver, I thought about giving back to the community and running a P2Pool node. Now I have a few questions:
  1. I only have one USB block eruptor, so 333MH/s. I pointed this to my pool. Is it even worth it? Does my node need to find a share for payout to happen?
  2. Since I'm running bitcoind in the background, does this mean I also run a full bitcoin node? If not, what do I need to do so I am running one?
  3. I also run namecoind because I want to try merged mining. I started P2Pool with --merged http://rpcuser:[email protected]:8334 How do I know if merged mining is working?
  4. Since I'm running my node not at home I want other users to be able to connect to it. Where can I advertise my node? I know of http://p2pool.hostv.pl/ but are there other sites?
submitted by zenvy to Bitcoin [link] [comments]

Bitcoin mining made really easy/BFGminer quick start guide

There is 2 parts to this
If i am missing somthing of if you want to add to this then please tell ms so i can make the changes. All is one and one is all. Infomation wants to be free, so dont be a dick help me make this better for all. Oh one more thing before we start I don't give a rats ass about up votes or down votes or square votes for this matter, I made this to help anyone who is stuck, if you don't like it then scram!(Its not like im forcing you to read this)...Or i am i ...
So if you new or experienced bitcoin miner you should know that shit ain't free. The reason for this is the fact that electric isn't free.(Oh the fun days we would have if it was) When mining there is always going to be a cost, like how to pay for the Hardware, and the power and the maintenance and something that everyone forgets, The time it can take to set up the hardware and the scripts to miner. I chose to do a side project on this and got my own Asic miner USB Block eruptor that mines at 336mhs. It took me about 6 hours to write a working batch file. So show i wanted to show it to you all because it is a pain in the ass.
BFGMINER PART
So If your using "ASICMiner Block Erupter USB 333-336MH/s Sapphire Miner" You have found the right page
You will need install the drivers here is the link = These drivers may be downloaded from: http://www.silabs.com/products/mcu/Pages/USBtoUARTBridgeVCPDrivers.aspx
So this is what i use BFGMINER.exe Verson 3.2.1 So i made a batch file With this in it.(If you need help making this then please tell me.I don't mind helping.)
C:\Users\Admin\Desktop\bfgminer-3.2.1-win64\bfgminer-3.2.1-win64\bfgminer.exe -o stratum+tcp://uk1.ghash.io:3333 -u YOURNAMEHER.worker1 -p YOURPASSWORD --disable-gpu -S all
-o stratum+tcp://uk1.ghash.io:3333 This is my mining pool -S all will find all divices -disable-gpu because i don't want it to mine on my GPU. Make this the location of you BFG miner C:\Users\Admin\Desktop\bfgminer-3.2.1-win64\bfgminer-3.2.1-win64\bfgminer.exe
-u YOURNAMEHER.worker1 This is your username and workername. -p YOURPASSWORD This is your password
So from all of this it worked i have basically pieced together everything that i found to make the batch file that will start mining
Woot Woot Empty Space
Bitcoin mining made really easy PART
How to start * Sign up at Cex.io if you don't already have an account. Then you can buy GH/S of mining speed. From Ebay Just type in Cex.io in ebay and you will find it all. READ ALL THE POSTS CAREFULLY. People can and will be dicks and try to trick you like saying 10000 kh/s of mining power, People that is 10 mb/s. Aka nothing
When you get a voucher code You will immediately start mining Bitcoins. You don't have to worry about setting anything up, electricity, power outages, or bad hardware.
The Benefits
*No technical knowledge required.
*No hardware to maintain.
*No software to configure.
*No electricity cost.
*If there server gose down they will bous your speed of the miner to make up for the down time(that is really cool, i only had this happen once......The went down for about 13 hours and i normale was mining at 2gbs but the bumped me up to 6 gbs for a few hours to make up for the down time...
*You can buy gh/s witht the bitcoins you mine.
*Supports Merged mining.This means it Mines Bitcoin, Namecoin, Devcoin, and IXcoin at the same time!
The Disadvantages
*you cant buy gh/z with money, they will only accept bitcoins
*If you like to physical hold the miner then this isnt for you.(Hey i do both so its the best of both worlds)
submitted by Xexos1 to Bitcoin [link] [comments]

It's a good start but can we do more?

I was in IRC and had a fascinating debate with another user on the merits of the upcoming changes.
I'm going to resist the urge to say "fork" because it's not really a fork is it? It's just a vote on a set of patches, plain and simple. So cut the vitriol please and stop referring to this as a fork, especially a "hostile fork".
You want big blocks, double spend alerts etc you upgrade your miner to bitcoinxt. If you don't want those things then don't upgrade. It will take a super majority to make it happen, but it's not really a fork it's just a vote.
We are voting because bitcoin is quickly coming to a crisis point and the core development team is split and unable to take decisive action.
This means that we as the users must take action ourselves and hope that the other half of the core team will eventually support us in this decision.
So now here we are, the XT patch set is spreading like wildfire and people are beginning to vote with their hardware.
Although the larger mining pools in China have declined to participate at this time, there are new pools coming online. As the Chinese hashrate begins to drop off I'm confident that that China will come to it's senses. Most of them already are making blocks that say "We support bigger blocks." Whether or not they are running the XT patches.
Here is the interesting thing. This vote changes the dynamics of what it means to mine.
Previously the determining factor in where to mine was solely the nominal cost of electricity as well as the cost of human factors to run it.
With bigger blocks, that will shift a bit. A new factor will come into play and that factor is network connectivity.
If you prefer freedom, you will vote for this patch. Here is why. Countries that are actively filtering their internet will not be great places to mine anymore. It simply takes too long to propagate a large block. Connectivity especially international connectivity will grow to become A dominant term, if not THE dominant term.
Now at this moment in time, Bitcoin is probably not big enough to pull down something the size of the great firewall of china. But as fiat is swapped into BTC over time, the demand will increase. The country will hopefully respond to it's citizens and the firewall will eventually fall.
It's probably wishful thinking that it will really do anything to Chinese policy as a whole, but at a minimum you cannot argue against the fact that network access becomes a new dominant term.
This is a watershed, a sea change. But there are those who argue "XT is a hard fork and will result in centralization."
I want to address that side as well. The fact is that Bitcoin is already VERY centralized. It is centralizing in China because that is the cheapest place for electricity. With the quasi-capitalist system they have in place it may be that some of the bigger farms will be forced to merge. One can only assume that f2pool & antpool will eventually join forces, but what of it?
Let's assume that the immediate net effect of bigger blocks was that the maximum size of the blocks is almost always reached. Let's further assume that this action forces f2pool, antpool, and the others to all merge into a single pool we'll just call the "Chinese Pool".
If that happened, the "Chinese Pool" would have well over 51% percent of the network capacity. China could easily use this as a weapon to paralyze western society as we know it, at least in bitcoinland.
And yet they haven't. The fact is that big blocks or no big blocks, well over 51% of the mining capacity for bitcoin is already sitting in a single country and that capacity could be leveraged as a weapon right now by a single high ranking official who made no more than 4 telephone calls.
If they consolidated into a single pool then it would only require 1 phone call? Is that really such a major concern?
Capitalism tends to reward consolidation & vertical integration.
Bitmain, god love'em is already fully vertical and while you can argue that antpool is really not that great anymore, they are still one of the largest pools and can grow quicker than the others because they make their own hardware.
This means that just like airlines, cable & phone companies etc, it is very likely that some day in the future BitMain will end up buying f2pool, bw etc. It will look like pacman gobbling up pellets.
It's also quite likely that China Telecom will have to buy up BitMain and run the whole thing themselves, although that particular end game is admittedly much more of an outlier.
So to my mind, the centralization/consolidation argument is prima facie invalid. Mining will consolidate, everytime it's more profitable to buy up your competition than to add more capacity.
The big blocks patch kit we call Bitcoin XT might speed that along. However it will also increase in absolute terms the utility of starting new pools in areas that are much better connected, where network connectivity is cheap new pools will crop up.
In the end fighting consolidation & centralization IS a losing battle. It does not mean we shouldn't fight tooth and nail.
This is because the nature of Bitcoin, rewards consolidation and it already takes individual efforts of a heroic scale to keep any single mining pool from gaining too much share.
Anyone remember the GHASH.io debacle from just over a year ago?
Does this mean we shouldn't fight? Does this mean we shouldn't change and evolve?
No it doesn't. The rise of the altcoins has shown us that there are a myriad of ways to fight centralization. The reason people are mining and even using altcoins is because they are showing support for the idea of decentralization.
Yes they do have a vested economic interest in recovering their investment in hardware, but running a miner is an expensive commitment regardless of coin, and yet running your own miner from your own home/office and pointing it to a smaller pool, does have the net effect of countering centralization somewhat, whether that's bitcoin or some random alt.
Eventually if Bitcoin wants to survive there are other changes that will be necessary. To my mind the XT patchset and voting kit is the first of many steps needed for longevity.
Other things that should be considered in the long run if we wish to remain a democratic and decentralized coin, are decreases to block time, and possibly a change over from Proof of Work to something that rewards miners for being small, or penalizes them for being too large.
I have no idea what that would be, but someone smarter than me probably has ideas already and that's the topic I want to start here.
I like the XT voting system because it is a good and important first step in preserving the democratic aspects of bitcoin, the coin, the network and the development process. Yet it is only a first step.
Looking ahead 5 , 10 or 20 years the fix to block size is not the only change that will be necessary. I've already called out a few that I think will be needed, but I'm curious to know your thoughts as well.
Thanks!
submitted by devlux to bitcoinxt [link] [comments]

The illusory threat of 51% Attacks from Traditional Pools

51% attacks are definately a buzz-word lately, what with the Coinotron issue with Litecoin, and the GHash.IO issue. So I thought I'd put some time into the various opinions around this situation. And what I have come up with, may seem counter to what most people believe, and infact, has actually changed my mind on a few things.
Firstly, yes, 51% are very real. They can ruin exchanges, and tarnish a coin's credibility. They can of course be repaired on the coin, but you can't give people back Bitcoin or other traded coins for the non-existant forked coins that they bought.
Now with that having been said, we really are Barking up the "wrong tree" when it comes to seeing this threat and looking at Traditional Pools.
Yes, I run two pools - Verters' Pool (since way back in February - the first (?) MPOS pool to support a custom Bootstrap skin before it became common-place :p). and HashHarder - which has the "less profitable every day" triple-merge mining option, so of course you can take my opinion as a biased one. Same as miners of a coin can be biased also. Back to my point.
To perform a 51% attack properly (ie to cause serious trouble), one needs to fork the blockchain privately, and mine with greater than 51% of the network hash for a day, week, month or whatever. Then after this time, reconnect to the main chains, and begin the reintegration of the bigger block-chain. I personally don't think that "nodes" have any programming whatsoever to stop this from happening - and blocking a single node would be pointless, as the attackers could make 2, 3, or 40 nodes.
Now this is my point: No current pool could perform/would perform this attack.
There are two types of situation that could occur - 1- Miners are kept unaware of this attack and their hashrate is used to 51% the coin, it would mean that all the miners on the pool would not receive any coins to their wallets (because its a private fork) for the entire time they are private mining. They would also see that the pool has not found any blocks at all, despite the hashrate being the same. Any coins they did try to "cash out" would magically not appear in their wallets.
The other situation is that the miners are all in on it. Now assuming this is just a standard pool (ie the ones we are discussing always on here - the SimpleVerts, the Coinotron's, the Ghash's) - then all the miners are hashing away in order to make some money from this all. There is no financial incentive for a miner who is not associated with the pool to be knowingly undermining the very coin that they are spending power and time on.
Therefore, I think, given the points above - it is very unlikely that given 51% (or more) that any of the existing or future vertcoin pools that we are aware of - or Litecoin or Bitcoin for that matter - would actually perform any such "attack".
The threat would exist from unknown parties, privately mining themselves with the intention to sell their mined coins via an exchange and then overwrite the transactions with their privately mined chain. This could not I believe, be done on a normal pool with Or even without the miners knowledge.
And thus, the threat from a "traditional pool" is illusory.
submitted by darrenturn90 to vertcoin [link] [comments]

What we need to solve the ghash.io issue is commitment.

We need a commitment from miners and a commitment from pool operators. I entirely understand why someone would want to mine at ghash.io. Besides no miner pool fee, It costs money to run miners and it's a lot more palatable to keep paying for that electricity when you're getting regular payouts. Being part of a large pool helps on that front.
What if we were able to could get current users at ghash.io to pledge to move their hash power to a specific competitor pool at a particular date? If we could get 10-15% of the network that is using ghash to commit and follow through by moving to eligius (also 0% pool fee) or slush's pool that would balance things out a lot more.
Ghash would still have about 30% of the network and the target pools would have a good amount pretty close to that. No pool would be mining blocks that much often than the other so the variance in your mining rewards should be acceptable.
What we need from the competitor mining pools is a commitment to improve. Slush pool could lower its fee slightly to entice the migration of miners. Or maybe eligius could merge mine altcoins like ghash. Do something to attract miners who use ghash.
Maybe I'm being optimistic thinking people will sacrifice a small percentage of profit to benefit the whole network but I truly hope something happens. Whether ghash has bad intentions or not doesn't matter. This is a danger hanging over the head of bitcoin and it'll be hard for bitcoin to grow under this issue.
We're also close to another surge in the network hashrate power. ASIC Miner is putting out 60ph in the next few months and bit fury will probably be doing something similar. If new miners keep going to ghash this problem will only get worse.
Large miners that use ghash, commit in this thread! Or start another one on bitcointalk for that purpose. Let's get a migration going for June 21!
submitted by Jaketheparrot to Bitcoin [link] [comments]

GHash.io & Hypothetical 51% Attack on Bitcoin Miners ditch Ghash.io -- Bittylicious goes Litecoin -- Bitcoin for Botswana, Africa Bitcoin Mining Pool 7/16/14 - Google adds Bitcoin calculator, GHash commits to 40%, & Coin Congress is next week How To Set CPUMINER Ghash io BTC

In October the development of the “GHash.IO” project was transferred to the CEX.IO development team. The team worked hard to completely rewrite the whole GHash.IO engine, as well as perform other stability and responsiveness improvements, which you all may have noticed. We have also removed the 3% fee and released merged-mining alt coins to ... We have already stopped using the Ghash.io Litecoin Mining Pool after the initial problems and changes of rules to the one week double mining awards for LTC promotion that CEX.io was running. We did recommend to our readers to do the same as we were really disappointed by how things were handled and the problems that were appearing. It seems however that what we have experienced as issues in ... GHash.IO gives miners the possibility to choose from the widest variety of mining options available on the cryptomarket, including cloud mining, hardware mining, merged mining, MultiPool Pro, and trading on CEX.IO. Each option has specific characteristics as well as technical and financial features. The table located on the GHash.IO’s main page gives the miners the opportunity to analyse the ... It may seem strange, given its now-significant impact on the bitcoin mining community, but BitFury-backed mining pool GHash.io launched only a year ago. In that time, the pool has drawn both immense praise (for providing a stable payout system, top-notch merged mining and modern mining dashboard) and severe criticism (for unapologetically seizing the majority of the bitcoin network, crashing ... Bitcoin is a distributed, worldwide, decentralized digital money … Press J to jump to the feed. Press question mark to learn the rest of the keyboard shortcuts. r/Bitcoin. log in sign up. User account menu. 16. Merged Mining pools are scarce and none. Close. 16. Posted by. u/dirtbiker245. 5 years ago. Archived. Merged Mining pools are scarce and none. I recently started mining with a fairly ...

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GHash.io & Hypothetical 51% Attack on Bitcoin

This video is unavailable. Watch Queue Queue. Watch Queue Queue In particular, summit organizer GHash.io, who recently came close to that threshold, made a commitment to "not exceed more than 39.99% of the overall Bitcoin hashrate." The mining pool provider is ... Cum incep mineritul pentru bitcoin cu hardware inchiriat? 1. Fati un cont pe Ghash.io este gratuit nu implica nici un cost. 2. Cumpara hardware rata de schimb 1GHS/BTC este de 0.0440 BTC pentru ... Bitcoin & Crypto 8,166 views 4:43 GHash.io и CEX.io инструкция по регистрации и майнингу на Мультипуле для профессионалов. Ghash.io Prevents 51% + Insured Bitcoin Storage + bitaddress.org Morning Bit Ep 37 - Duration: 2 ... $10K and 15+Mhash Worth of Litecoin Mining Rigs - Duration: 3:15. Johnny Phung 476,869 views ...

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