Michael Korolev, CEO of 2Miners.com, talked about what good luck is in mining.
The boom of cryptocurrencies last year increased the popularity of related topics. All of a sudden, everyone started talking about Bitcoins, Ethers, and mining. And if many have familiarized themselves with the latter concept at the basic level, then the technical side, with the example of success in mining, still raises questions. Today we will tell you what it is and whether it is necessary to focus on this indicator when choosing a pool.
First, let us clarify the situation with mining. The meaning of the idea is simple as the owners of farms around the world compete with one another in the selection of solutions for an equation. Each correct solution creates a block in the network. Thanks to the right decision, information about transactions in the form of blocks gets into the blockchain and remains there forever.
What Is Luck in Life?
Let us give an example for ease of introduction to the topic. Before us is a regular dice, a cube. On each side, there are points from one to six. Suppose you want to make a throw to win the game. In an ideal world, 16.6% is enough as we divide one hundred percent by the number of faces.
Now we translate the figures into a simple language. 16.67 means that under ideal conditions we must throw the dice every sixth time. Why not if there are six faces. The first time we make a throw, we get a one, the second time, a two, the sixth, a six, and further down the circle. Correct?
Yes, but only in an ideal world. In the real world, everything is different. We can get the desired number three times in a row, or we get nothing even at the tenth attempt. The interest hidden behind this process is luck.
What Is Luck in Mining?
Let us get back to the world of video cards and ASICs. Here, depending on the farm hash, you get to throw the dice a different number of times, and the correct combination plays the role of the desired number to solve the block.
In mining, it is considered that the ideal world is established, when luck is 100%. If it is less than 100, we are lucky, if more than 100 no luck. To simplify the perception, we return to the dice. If out of six attempts we get a one once, our luck is 100%. In other words, reality coincided with theoretical figures, and we took from life exactly what we should have.
But, on the second round of six shots, the one dropped out twice. What does it mean? That's right, luck has doubled up to 50%. If there are three winnings out of six attempts, we will get 33%.
And so on. The more we take into account the attempts, the closer our luck will be to 100%. In mining, luck at the moment can be equal to 8 or 1,130 percent, and it is impossible to know in advance. But, in a day, a month, or a year, it will tend to be 100%.
Let us return to the real weekdays of the miners. For example, take the Ella pool at 2Miners.com. The network of the cryptocurrency network is 281.8 Gh/s, and the pool hash is 10.2 Gh/s. Let us imagine that 281.8 is a whole pie. Our part is 3.6 percent, to obtain which we divide 10.2 by 281.8.
Now, let us list the key features of the Ella network. Blocks are formed here every 13 seconds, rewarding miners five coins for each block. It turns out that in an hour, 277 blocks (3600 seconds/13 seconds) appear on the network.
In an ideal world, the pool should have about ten blocks per hour (277 * 0.036). Accordingly, the miners would receive 50 coins, which at today's exchange rate of 30 cents are converted to $15 per hour. This calculation is called fair as we just counted our share and wait for the corresponding piece of the pie.
In life everything is different. Let us look at the success of the mining pool.
For the last 64 blocks, miners were lucky, and the average value of that luck was 88%. So, they got 12% more from the pie. But the last 128 blocks as a whole were a failure for the miners as they got 6% less. And now, the most important thing is at a long distance of 256 blocks, luck has come to an ideal value of 99%, or almost the cherished 100%. Remember, we said that in the long run, luck would always strive for 100%.
Do not believe me? Let us look at two more pools.
The pool http://ella.minerpool.net/ has worked from the very beginning of the creation of the Ella coin and has already found 409,000 blocks. We can say that this pool was the first and is the most powerful pool for the Ella coin and not only.
Here is its luck for the last 1,024 blocks. It once again confirms our statement as it stands at 101%.
We take another pool http://ella.pool.sexy/
To put it bluntly, the pool.sexy pool got lucky for the last 20 and 50 blocks, but at a distance of 500 blocks again, our conclusions are correct with 102% of luck.
How Luck Affects Mining: Conclusions
Let us turn to the domestic example. Your farm has a hash of 100 MH/s, and a neighbor has 500 MH/s. Ideally, one of your rewards for a solved block should have five of the neighbor's prizes. But, if you have the same earnings throughout the day, then he is not lucky, and you are lucky. He has bad luck, you have excessive luck. But, tomorrow everything can change, and within a month, each of you will earn 100%.
Luck in mining is a digital expression of the luckiness of the miners' farms. The indicator is constantly changing and does not guarantee a large (or small) profit. When choosing a mining pool, it is better to pay attention to the frequency of payments, the size of the commission, and the availability of support. Remember that in the long run, the pool's success always tends to 100%.
What to remember:
Luck in mining resembles good luck in life;
Good luck means that the equipment has brought in more profit than it should have in an ideal world;
Luck can vary from tens to thousands of percent;
The indicators are updated after each block;
Luck does not guarantee a good profit or its absence;
In the long run, luck tends to 100 percent;
Past luck does not affect the future.