Supernode Proof of Stake Consensus Complete Guide

 

Supernode Proof of Stake Consensus Complete Guide

 

1. Basic introduction

Supernode Proof of Stake (SPoS) is a blockchain consensus mechanism designed by Sunny King, the creator of Proof of Stake (PoS) consensus, in June 2018. It is an extension to many core concepts of PoS, including Stake as Power, decentralization, high scalability and more. Compared to the new generation of mechanisms inspired by PoS, such as Casper, hybrid PoS, and DPoS, which is sometimes not considered as PoS, SPoS is a true and faithful continuation to the original PoS fundamentals.

Released in 2013, PoS was designed to resolve several key issues associated with Bitcoin’s Proof of Work (PoW) consensus mechanism, including energy inefficiency, centralization of mining pools and lack of scalability. Since its creation, many cryptocurrencies have been inspired by PoS and adopted the algorithm, such as Dash, Cardano, and Sunny King’s own creation Peercoin.

However, PoS consensus mechanism carries certain shortcomings, and is unable to meet the requirements of the current blockchain field for the development and application of a single public chain platform. On December 31th 2016, therefore, Sunny King started a new thing, this thing will change the history again.

In November 2018, Sunny King launched the first native blockchain platform V SYSTEMS based on his SPoS consensus mechanism. The project aims to deliver a blockchain database and cloud platform, with the vision to bring forward a new economic era consisting of hundreds of millions of blockchain applications.

2. Summary of PoS

Since SPoS is an extension to PoS’ original ideologies, it is crucial to learn the key technical features of PoS before fully understanding the concept of SPoS.

1. Almost no energy consumption

PoS does not rely on electricity nor computational power as the basis for block validation, thereby consuming almost no energy.

2. Unlimited level of scalability

As the validation process is not restricted by hardware or electricity constraints, in theory, the blockchain carries an unlimited level of scalability. This paves the way for large scale blockchain technology applications.

3. Coin utility determines coin value

The coin value is not reliant on the intrinsic value nor the equivalence of other types of goods (e.g. the cost of mining). Instead, the coin value is determined by the coin utility.

4. Stake is power

Block validation and rewards are both based upon stake.

5. Decentralization

Without mining pools, there will be no giant and centralized institutions to dominate the blockchain.

6. Random block production

PoS uses the design of random block production, and only the average block interval can be observed.

 

3. Criticisms for PoS

SPoS is designed to tackle the issues of PoS. It is therefore also important to learn the key criticisms faced by PoS in order to fully understand the rationale behind SPoS.

1. Nothing-at-stake

Nothing-at-stake is one of the major concerns on PoS. The argument suggests that because block validation does not involve computational power or energy consumption, coin minters will try to mint on all block trees in order to prevent himself from not minting on the winning chain, therefore avoiding any potential loss and maximizing the gain.

2. Stake liquidity limited by coin age

PoS imposes many restrictions on the movement of stake after participating in coin minting. On a technical level, this design prevents frequent attacks (i.e. the holder of the coin can “vote more than once” and one stake gains multiple benefits).

From the perspective of PoS, one stake should not be allowed to claim multiple minting rights. However, one might be able to take advantage of stake liquidity and attempt to quickly move the stake around to claim more minting rights than it should. This type of attack is referred to as “busy contention attack”.

Even though the restrictions on movement may be of good reasons from a technical point of view, economically it is a barrier of entry for users to participate in minting. Coin holders are often concerned on how long their coins will be locked for the minting process.

Under SPoS, however, the number of stakes participating in minting is directly related to the level of security for the mechanism, similar to how computing power determines bitcoin security level. In this sense, not putting any restrictions on movement of stake is in fact beneficial to network security.

3. Coin age cannot accurately reflect contribution

As a proof of the stake value in minting opportunity, coin age shows a high level of stability and a wide range of advantages.

However, since it is a transaction-based measurement, the computational complexity is correlated with the number of transactions executed in a given time. Also, coin age is not an accurate indicator of the stake owner’s contribution to the community.

4. Minting security

Since PoS requires minter to sign the block, the private key must remain online, which poses a potential huge risk to the minter.

5. Inability to support large scale adoption

Under PoS, not all nodes receive enough incentives to undergo hardware upgrade. Moreover, if a random block production is adopted like in Bitcoin or other PoS blockchain, the actual production interval may sometimes far exceed the average time.

These issues create a huge concern for the efficiency of the blockchain, as systems usually prefer a constant response time over a random one.

4. Evolution from PoS to SPoS

1. Nothing-at-stake

The concern on nothing-at-stake is in fact unnecessary, as it ignores the fact that when a person owns a certain amount of stake in the ecosystem, the person is motivated to maximize the interest of the community instead of initiating attacks.

Coin owners who seek to maximize profits use the exchange value of the coin as a measurement of the coin value. Minting on all branches of block tree will be contradictory to his self interest, as it is considered a type of attack and the action will lead to a drop in the exchange value.

Considering the negative impact on the coin value, the potential loss on not minting on all branches is far less than the potential loss on coin value. Rational coin owners will always choose to uphold the protocol and ideologies of the consensus mechanism in order to maximize the interest.

In fact, the issue of nothing-at-stake has yet to be observed in a real scenario.

2. Stake liquidity

With a high level of stake liquidity, minters can spend or transfer their stake at any time. Coin leasers can also withdraw their lease, spend, or transfer their stake at any moment. This freedom of movement helps safeguard the blockchain. Take an extreme example of when supernodes are under attack — under SPoS mechanism, a coin holder can immediately withdraw the lease and switch to a secure backup supernode. This will render the attack meaningless, and also make it difficult to attack the blockchain as a whole, as in theory the hacker will have to attack an unlimited amount of supernodes.

Although there is a concern of busy contention attacks due to stake liquidity as mentioned in previous section, SPoS is well adapt to counter the situation. The mechanism introduces a unique measurement of account balance, similar to the accumulative average measurement during minting contention. The idea is that the stake must remain in the account for a period of time and wait for the metric to return to full. This design helps eliminate the concerns on frequent attacks.

3. Coin age

A minting balance mechanism is introduced for coin age measurement in the SPoS mechanism. The idea is that when a stake is withdrawn from the supernode, the total amount of stake on the supernode is immediately reduced. However, when a stake is leased to the supernode, the total amount of stake on the supernode is not immediately increased.

Whether the supernode wins the minting right depends on the minting balance. This minting balance, on the other hand, is dependent on whether the leased stake has been placed for a sufficient period of time. Yet, the length of the stake placement time and minting rewards are not correlated.

4. Minting security

To raise the level of security, SPoS mechanism separates the roles of minter and spender. That is, the private key of the coin holder can be different from the private key of the coin minter. With this design, all private keys of the stake can be put in offline storage.

This naturally allows the emergence of minting pools — the supernodes in SPoS. It is a similar concept to mining pools in Bitcoin.

Sunny King has also introduced a balanced minting right to prevent centralization of supernodes. This will be further explored in later sections.

5. Supporting large scale decentralized applications

The introduction of supernodes provides sufficient incentives to ensure that the supernodes continuously upgrade the hardware to support the blockchain expansion.

Also, the fixed block production sequence and production interval allows the supernode local clock to synchronize with the Internet time protocol. This ensures a high efficiency of block production as well as improves the security and predictability.

5. Technical and economical features of SPoS

Key technical features of SPoS:

1. Fixed block production sequence and constant block interval

2. Cold minting

3. Supernodes

Key economical features of SPoS:

1. Both stake owners and supernodes receive incentives for block production

Minting rewards are shared by supernodes and stake owners. The reward sharing ratio is determined by the supernode. Currently, there are 15 supernodes running on the V SYSTEMS mainnet. Coin holders (stake owners) can lease their coins to the supernode in order to earn the minting rewards. Each supernode takes turn to generate blocks in a minute, with each block bringing 36 VSYS Coins as rewards.

Based on the current number of supernodes, each supernode will generate 51,840 VSYS coins per day. After deducting around 20% of the reward for hardware upgrade and other operational costs, the remaining 80% will be proportionately distributed to coin holders who leased their coins to the supernode.

2. Minting right and minting rewards are distributed in a fair manner, thus eliminating the risk of minting pool centralization

Equal minting right for each minting slot gives supernodes an equal standing and minting output. This is contrary to the design of Bitcoin, where no built-in mechanism is put in place to prevent the domination of mining pools. SPoS eliminates this major barrier that hinders the goal of decentralization.

The equal minting right of minting slot plays an important role in the minting economy. Supernodes form a market of minting pools. The minting market will then form an interest rate for leasing. Since stake owners have a reasonable preference to lease to a supernode paying higher lease rate, and the additional lease to a high paying supernode will lower its lease rate due to the constant minting output of the supernode, an equilibrium exists as a built-in force to equalize the lease rates of supernodes.

6. Advancements of SPoS

1.      Superior version of PoS, following the stake-as-power philosophy

2.     The only everyone can easy minting and easy out consensus.

3.     Performance-oriented, support large scale decentralized applications

4.     Most resistant consensus mechanism to 51% attack

5.     Highly secure of minting progress for all ecosystem participants

6.     Decentralized supernodes

7.     Simplify the consensus using a mathematical approach just like bitcoin & PoW did

What the Proof of Stake and Supernode box replaces the Proof of Stake?

 

PoS uses a processplus pseudo-random election to choose the validator of the next block, which depends on the amount of tokens that each node has staked. In order to prevent nodes with high stakes from dominating the network, techniques such as Random Block Selection and Room Age Based Selection are generally adopted by the algorithm.

 

It is generally believed that the higher a node's stake, the more likely it is that the node wants the network to remain secure. In order to launch a 51% attack, a Node would require control of 51% of the entire circulating supply, an expensive proposition, just like PoW. Additionally, if a node behaves dishonestly, all of its staked parts are confiscated by the network, which further incentivizes nodes to stay by the rules.

 

Since no special material is required to become a validator, anyone availablesant of a simple laptop can join the network as a node. Greater decentralization undoubtedly leads to greater security.

 

However, just as every coin has two sides, greater decentralization also results in performance issues. The nodes in a PoS network have different hardware metrics, which makes the network as strong as its weakest node. Block validation time may be longer for nodes using obsolete hardware, resulting in an overall increase in confirmation times under heavy traffic. Anyone who's tried to participate in a Neo ICO would know what I'm talking about here!

 

The PoS family

Efforts have been made by various blockchain projects to remedy the limitations from which conventional PoS suffers, by providing modifications

in the protocol while retaining its basic essence. Daniel Larimer came

with Delegated proof of stake (DPoS) in 2014, which was first adopted by BitShares. Later, other cryptocurrencies like Lisk and EOS also used DPoS.

 

In DPoS, nodes vote for a number Fixed delegates (or witnesses), who participate in the consensus process and secure the network. The voting power of each node (or stakeholder) is proportional to the number of coins it has. Voting rewards are usually collected by delegates and shared proportionally with theirs respective voters. If an elected node engages in fraudulent behavior, it is immediately kicked out and replaced by another.

 

DPoS distributes tasks between nodes and delegates. Since ordinary nodes participate only in the block validator election process, transaction times depend only on the performance of the delegates and not on ordinary nodes. Delegates are either motivated to remain honest or they are rejected, which is supposed to add to the overall security of the network.

 

Another popular variant of PoS is Leased Proof-of-Stake (LPoS), which was developed in 2017. LPoS allows nodes to rent their coins to mini ng nodes, which validate blocks and earn rewards. Mining nodes must wager a minimum number of coins. The rented rooms are locked.stored in the user's account,

and are not physically transferred to the minor. As in other cases, the higher the amount of coins rented from a miner, the higher their chances of winning bulk rewards. Waves was the first project to use LPoS.

Since miners must be online 24/7, every user might not be interested in running a node mining. By allowing users to lease their parts for mining, more nodes can be involved in the overall governance of the network. This increases the degree of decentralization of the network, although it also entails the risk of the formation of mining pools.

 

Enter SPoS

Supernode Proof-of-Stake (SPoS) is the latest in algorithmPoS-based consensus ithms. It is the brainchild of Sunny King, the creator of PoS himself, and was announced to the public in January 2019. While it retains the fundamentals of PoS (and some of its derivatives), What sets SPoS apart is that it focuses more on hardware upgrades than protocol enhancements.

 

The SPoS protocol itself requires the supernode hardware to be upgraded as the performance of the blockchain requires. By rem Due to the dependence on ordinary nodes, SPoS claims that constant network performance can be guaranteed even under heavy traffic. V SYSTEMS is the first project to have implemented SPoS.

 

Ordinary nodes can still participate in the governance of the network by leasing their coins to these supernodes, who distribute the hit rewards proportionally among the pi ownersgot real. The rooms can be rented without giving up their ownership thanks to the technique of Cold Staking. Each user has 2 keys - the typing key, which remains online and allows the coin mechanism to sign newly minted blocks; and the expense key, which is securely held offline, actually “owns” the participation.

 

Stake owners can also transfer or spend their staked coins whenever they want, encouraging more nodes to stake coins. In principle, this is similar to LPoS, although LPoS does not impose any restrictions on the choice of hardware for mining nodes.

 

SPoS also supports a new part staking mechanism called Staking 2.0. In ordinary PoS, by staking coins on the network, nodes earn the native coin of the network as rewards (for example, Neo staking allows users toisators to win NeoGas). In Staking 2.0, not only will supernodes win the native blockchain coin, but all blockchain-supported tokens (for example, VSYS staking will allow users to earn both VSYS and IPX from now on). Supernodes are then expected to distribute them all among the stake owners.

 

Concerns about decentralization

Despite attempts by SPoS for greater decentralization through Staking2.0, it There are concerns about inherently present trends. Compared to Bitcoin or Ethereum which have thousands With minor nodes around the world participating in the consensus, the governance of SPoS is requisitioned by a handful of supernodes.

 

The owners of the picketswould naturally tend to rent parts from supernodes with a higher rental rate. This would lead to the tendency to create strike pools, and if a supernode ends up assimilating the majority of the coins involved, it can compromise the security of the network as a whole.

 

With more rooms rented, the rental rate of a supernode would drop automatically, thus ensuring that a balance is maintained and no supernode ends up becoming a player dominant in the ecosystem.

 

Unfortunately, that still doesn't stop the rogue supernodes from ganging up and trying to take over the network. I had the opportunity to express this doubt to Jacob Gadikian , a blockchain technologist who was part of the SPoS development team

.

 

According to Jacob, in order to launch such an attack, the supernode (s) should first acquire a sufficient amount of stake. They can earn it by buying the coins on exchanges or by using social marketing skills.

to convince users to rent coins from them.

 

In the first case, buying such a large amount of coins would drive up the price of the coin, making the attack financially impractical (similar to the argument for Bitcoin) .And in the second case, they would no longer be red supernodes, but rather ecosystem partners chosen by stakeholders e

 

Thoughts of separation

PoS was an attempt to provide the same security and decentralization as PoW, but at lower cost SPoS further attempts to improve network performance, shifting the focus from updating the algorithm to upgrading.material day

. In the process, they seem to have been more flexible on decentralization. After all, no project has really been able to solve the blockchain trilemma.

 

Having said that, even PoW is not a guarantee against network attacks. Earlier this year, one of the best -20 ETC (Ethereum Classic) market cap coins have fallen

prey at 51% to nail. It continued for 3 days, resulting in losses in the order of $ 1.1 million. SPoS takes a different approach compared to other variants of PoS

, and it is still in its infancy. It is only after a sufficient amount of time and a decent number of projects have adopted SPoS that we will be able to tell if King's second child has been able to outperform his firstborn.

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Investing In Cloud Mining – Everything You Need to Know

 

Investing In Cloud Mining – Everything You Need to Know

 

 

As a savvy crypto investor it’s wise to understand cloud mining and how it can further your investment goals. The concept of cloud mining is nearly as old as Bitcoin itself. Today, cloud mining has a mixed reputation as both a profitable but scam-ridden sector of the market. Here’s what you need to know before you invest in any cloud mining protocols.

What is Cloud Mining?

To understand cloud mining, you first need to understand how Bitcoin works. In the Bitcoin network, there are nodes that validate transactions. These validating nodes are what are referred to as miners in the industry. They received this title because of the energy they exert to maintain the validity of the blockchain. This energy consumption comes with a price tag. In this way, mining for Bitcoin is similar to mining for other precious assets. You need to invest time and resources which adds to the overall value of the asset.

Bitcoin miners compete against each other to solve a complex mathematical equation known as SHA-256 (secure hashing algorithm-256). This equation is so difficult that your computer takes a look at it and determines that it’s faster to make educated guesses versus actually doing the math directly. This computational draw is referred to as the hash rate of the Bitcoin network.

Predictive Supply

Notably, Bitcoin’s anonymous creator, Satoshi Nakamoto included some intriguing protocols to ensure that Bitcoin miners completed this equation and added blocks to the network in 10-minutes intervals. This timeframe was critical to Bitcoin’s strategy because mining rewards are the only time new Bitcoin enters the market. Keenly, the 10-minute intervals help Bitcoin maintain a predictive supply mechanism.

Bitcoin Mining Farm

In Bitcoin’s early days, anyone could mine on the network using a simple PC. Wisely, Nakamoto introduced an algorithm to increase the difficulty of the SHA-256 equation based on the overall hash rate of the network. The more people mining Bitcoin, the harder the equation becomes. These adjustments work in tandem with an automatically reducing rewards schedule.

Mining Rewards

Bitcoin’s first miners received 50 Bitcoin for every block they added to the blockchain. This reward amount has decreased by halves every 210,000 blocks mined. The current reward is 6.25 Bitcoin for each block mined. This reward rate is set to half again in 2024. Notably, the last Bitcoin will be mined sometime in 2140 at this current rate.

Scarcity Drives Innovation

The fact that there are only 21 million Bitcoin to ever enter the market, coupled with the rising prices of this crypto, continues to drive miners to new innovations. Mining used to only take a home PC. However, it wasn’t long before miners started building special mining rigs built from GPU cards. GPU cards are far more efficient than CPUs at doing repetitive tasks such as guessing the answer to the SHA-256 equation.

The introduction of GPU cards changed everything in the market. For one, it boosted the hash rate of the network to new heights. It also signaled the start of the end for normal CPU miners. A GPU mining rig is hundreds of times faster at solving the SHA-256 equation versus your standard CPU.

ASIC Mining Rigs Set the New Standard

The entire mining sector saw another major upset when Bitmain, the world’s largest mining rig manufacturer and mining pool operator, introduced ASIC mining rigs to the market. These high-powered purpose-built chips destroyed the performance of GPUs. ASIC (application-specific integrated circuits) are thousands of times faster at solving the SHA-256 equation than GPUs.

ASIC miners were also much more expensive than GPU mining rigs. These devices could run you over $2000 for low-end models and around $8000+ for top quality units. Since ASIC mining rigs increased the hash rate of the network, they also pushed the difficulty of the SHA-256 equation to the point that regular CPUs were practically worthless. In essence, you can still mine with your home PC today, but at that point, you have about the same odds as winning the lotto, plus a lot more electricity costs.

Too Expensive for the Average Joe

Once the mining sector became an exclusive place for major players, it also saw major centralization come into play. Huge mining farms started to corner large portions of Bitcoin’s network hash rate. This centralization led to an outcry in the community. Bitcoin was built around the concept of anyone participating in its network and now this had become far from reality. Luckily, mining pools helped to even the playing field, for a little while.

Bitcoin GPU Miner

Mining Pools

Mining pools are protocols that combine the entire hashing power of the pool to compete in Bitcoin’s mining algorithm. Mining pools allow anyone to contribute, to the best of their abilities, and receive regular returns. Anyone who participates in a mining pool receives rewards equivalent to their percentage of donated hash power.

Today, mining pools are the norm. Even the largest Bitcoin mining farms that once dominated the sector are now part of larger mining pools. The decision to join these mining pools makes sense because you receive daily rewards versus the hit or miss strategy employed with traditional mining.

Cloud Mining

Cloud mining is the evolution of the mining pool concept. It wasn’t long before data centers realized that there were plenty of people who wanted to participate in the pool but lacked the mining rigs to do so. To rectify this situation, data centers began renting out their hash power in the pool. This concept was revolutionary because it meant for the first time there was a mechanism to mine a cryptocurrency, such as Bitcoin, using rented cloud computing power.

What Problems Does Cloud Mining Attempt to Fix?

Cloud mining attempts to solve some of the most pressing matters facing Bitcoin miners. Providing users the ability to lease or purchase mining equipment from a third-party cloud provider opened the door for universal participation. Anyone, located anywhere, could utilize a remote datacenter with shared processing power to earn some free Bitcoin.

Cost Barriers

As the average cost of an ASIC mining rig skyrocketed, many miners were left in the cold. Most analysts would agree that cost barriers represent one of the main hindrances to large-scale Bitcoin adoption. Cloud mining services invest in expensive equipment for you. This strategy eliminates the need for any hardware except a smartphone to check your balance.

Technical Barriers

Along with the elimination of financial barriers to adoption, cloud mining also does away with technical barriers. The early miners had to understand the coding of Bitcoin to download the blockchain and start verifying transactions. These demands increased when GPU and ASIC miners emerged. Now, there were professional manufacturers contributing to the sector.

Benefits of Cloud Mining

It doesn’t take long to realize the huge benefits gained from a cloud mining strategy. Primarily, the setup is easy. You just log in to a cloud mining platform and watch your returns. Of course, there are more benefits than just simplicity. Here are some other major draws to the cloud mining sector.

No Electricity

One of the biggest complaints laid against Bitcoin is its power consumption requirements. Currently, Bitcoin’s network uses more electricity than many developed European nations. Despite the fact that a significant portion of cloud mining electricity is derived from renewables, it still puts a large burden on the current grid. Consequently, this electricity directly translates into overhead.

Cloud mining eliminates electricity-based concerns from the mining equation. This elimination means that people who live in areas with extremely high electricity, such as certain islands in the Caribbean, can mine Bitcoin effectively. Keenly, cloud mining reduces your carbon footprint.

How Does Cloud Mining Work?

At the center of the cloud mining strategy are large data centers. These mega mining farms were purpose-built to save energy and deliver computational powers were needed. In a cloud mining scenario, you lease your hashing power and in return, you receive a certain amount of rewards per block. Since you have no access to the mining equipment, the data center is solely responsible for maintaining the equipment.

Coin Selection

Nowadays, there are cloud mining platforms for a large variety of coins. In addition to first-generation SHA-256 mined coins such as BTC and ETH, there are now dozens of altcoins that can be cloud mined. What’s even cooler is that some platforms provide protocols that will automatically switch your mining efforts based on the network difficulty and the overall profitability of the venture.

History of Cloud Mining

The first cloud mining pool entered service in November 2010 under the now changed name, Bitcoin Pooled Mining Server. Today, the platform goes by the name Slush. Impressively, Slush has mined over 1 million Bitcoin since its inception. In 2013, another major contender entered the market – Phanes Techonology. Originally, this pool also went by a different name. Today F2Pool holds a prominent position in the market as China’s oldest Bitcoin mining pool, and the second-largest Bitcoin pool in the world.

Bitcoin Cloud Mining Pools

In 2014, the world’s largest rig manufacturer stepped into the market in a major way with the launch of Antpool. Antpool became one of the largest mining pools in the sector in less than a year. This growth led to concerns regarding centralization. These concerns grew louder after Bitmain acquired another major cloud mining pool BTC.com in 2015.

Risks of Cloud Mining

As with everything crypto, there are some caveats and risks that you need to be aware of before you invest in a cloud mining operation. Primarily, you should only work with reputable cloud mining pools to avoid scams.

Cloud mining often receives a bad rap because there have been countless scam pools and rug pulls in the sector. The fact that you never actually see or handle your mining equipment makes it easy for nefarious actors to flea with your funding.

In some instances, these firms will use the funds gathered from new investors to pay rewards out to early investors. This strategy is similar to a Ponzi scheme. The old investors think they are earning the profits they expected so they invest even harder. This drive pushes new investment in the platform. Then, suddenly, the pool vanishes with your crypto.

Recent Cloud Mining Scams

A perfect example of a cloud mining scam playing out occurred this year. Just this week, the co-founder of an alleged mining scam was extradited from Panama to face charges in New York. According to court documents, Gutemburg Dos Santos promised wild rewards to his AirBit Club members. Of course, to get the best rewards, you needed to simply purchase the lifetime mining club package for $1000.

Spotting Cloud Mining Scams

Thankfully, it’s a lot easier to spot cloud mining scams than in the past. In the early days of crypto, there was so much confusion in the market. It was also very difficult to find reliable information online, especially pertaining to new technologies like cloud mining pools. However, today this is not the case.

You should always DYOR before you invest in any new technology. Cloud mining is profitable, but only if you do it right. If someone promises you rewards that seem out of the ordinary, it’s because they are trying to scam you out of your hard-earned Bitcoin. In these instances, don’t let FOMO rule you. Be firm and walk away. Your wallet will thank you at a later date.

Cloud Mining is the Future

Despite the risk of scamsters, the cloud pool mining sector is essential in the community. There will always be a demand for Bitcoin network hashing power. In many instances, utilizing these networks is far more cost-efficient than purchasing or operating your own rig. Even if your rig is part of the mining pool, you can still bump up your rewards by purchasing more hash power. It’s for these reasons, cloud mining is set to remain a core product of the industry for the foreseeable future.