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Author Topic: Mining private coin with rented cloud rigs and possible mitigations  (Read 207 times)
Labrader
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February 25, 2018, 07:56:52 PM
Last edit: February 26, 2018, 09:24:20 PM by Labrader
 #1

Let's say I start my own private coin, by cloning an existing coin and making necessary adjustments. Let's assume the net is up and running and I have a few working nodes. I'm using one of the vanilla algos, nothing fancy. Would it be theoretically possible to rent mining capacity on a cloud service for my new coin? Provided I setup my own pool.

I know cloud mining is in Marketplace, but it's just a theoretical exercise, I'm interested form a technical standpoint.
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Bitfort
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February 25, 2018, 09:35:52 PM
 #2

I think it is possible. Not sure about nicehash but you could rent mining power at miningrentals. I assume you would need to create pool and point it there (as I don't know how would you set up solomining).

MY HINTs
◄M► MINING
◄G► GAMBLING
◄E► EXCHANGE

◄E► (KCS) Kucoin-Staking, Auto-Lending, Trading-Bot
◄E► (BNB) Binance-Staking, Savings, 10% RefBack
◄E► (TRX) Poloniex-Staking, Lending, Fee Discount
◄E► (LEO) Bitfinex-Staking, Auto-Lending

◄G► Betfury-Faucet, Dividend Earnings (BFG holders, mine BFG by playing)
◄G► Bitvest -  Faucet, Bankroll Invest
◄G► CryptoGames-Faucet, Lotto
◄G► PrimeDice-Faucet

◄M► Prohashing (Multipool)-Payout in any coin, get 0.50% bonus for 30 days
◄M► MiningRigRentals (Marketplace)-buy hashrate or rent your miners

Labrader
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February 26, 2018, 09:26:45 PM
 #3

I suspected as much.

Now, let's look at this from another perspective: a malicious group is renting huge hashing power, knocking every other honest miner into not mining anything. Are there any possible mitigations?
fanatic26
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February 26, 2018, 11:42:52 PM
 #4

I suspected as much.

Now, let's look at this from another perspective: a malicious group is renting huge hashing power, knocking every other honest miner into not mining anything. Are there any possible mitigations?


Mine a different coin. Use one of the more established coins and not all the random shitcoins that permeate the space these days.

Stop buying industrial miners, running them at home, and then complaining about the noise.
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February 27, 2018, 08:24:05 AM
 #5

It is possible. And so, what would be validated by miner? If on those coin network didn't happen any transaction.

Nicehash or Mining Rig Rental would be good for renting Hashrate at your scheme, just need to configure any difficulty at your own mining pool in accepting rented Hashrate.
Labrader
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February 27, 2018, 02:31:19 PM
 #6

Mine a different coin. Use one of the more established coins and not all the random shitcoins that permeate the space these days.
The initial hypotesis is: it's my shitcoin. How do I defend it?
Bitfort
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February 27, 2018, 02:47:04 PM
Last edit: February 27, 2018, 04:56:38 PM by Bitfort
 #7

Mine a different coin. Use one of the more established coins and not all the random shitcoins that permeate the space these days.
The initial hypotesis is: it's my shitcoin. How do I defend it?

I think the only what you can do is initiate a fork and change algo (and abandon the original chain). But same thing can repeat so there's actually nothing useful you can do.
From another POV this smells like centralization ... original idea behind cryptocurrency is that it should be free competition for everybody able to participate and with fixed conditions (not changeable whenever originator wants).

MY HINTs
◄M► MINING
◄G► GAMBLING
◄E► EXCHANGE

◄E► (KCS) Kucoin-Staking, Auto-Lending, Trading-Bot
◄E► (BNB) Binance-Staking, Savings, 10% RefBack
◄E► (TRX) Poloniex-Staking, Lending, Fee Discount
◄E► (LEO) Bitfinex-Staking, Auto-Lending

◄G► Betfury-Faucet, Dividend Earnings (BFG holders, mine BFG by playing)
◄G► Bitvest -  Faucet, Bankroll Invest
◄G► CryptoGames-Faucet, Lotto
◄G► PrimeDice-Faucet

◄M► Prohashing (Multipool)-Payout in any coin, get 0.50% bonus for 30 days
◄M► MiningRigRentals (Marketplace)-buy hashrate or rent your miners

Geraldo
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February 27, 2018, 02:59:58 PM
 #8

Just adding my previous comment
And one more important thing is those coin must be exchangeable to other coins or currency. If you created those coin only for you and didn't release on the market the coin value is zero and what you are doing is nothing.
sachdientugoogle
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February 27, 2018, 03:13:00 PM
 #9

its an interesting dynamic because yes if you buy a rig you're basically printing money after your ROI is realized, but at the same time if you used the same amount of $$$ to invest in coins you'll probably see gains that would put your holds way beyond what you could mine 6-12 months down the road
Geraldo
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February 27, 2018, 03:33:46 PM
 #10

Please read carefully. OP wants to know possibilities to create a new coin, mining it by himself using rented Hashrate (Nicehash / Mining Rig Rental..etc) and also created own mining pool for that coin.  Wink
Labrader
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February 28, 2018, 10:38:28 PM
 #11

From another POV this smells like centralization ... original idea behind cryptocurrency is that it should be free competition for everybody able to participate and with fixed conditions (not changeable whenever originator wants).
True, but I'm thinking of a scenario when the network is at it's first growing steps and all of a sudden a malicious group starts mining with, let's say 90% of all hashing power.

The only short-term defense I could think of is renting hashing power, to reestablish some fairness, where noone mines with >51% of hashing power. The downside is rentals cost real money. I was wondering if there were any other ideas to counteract such a move.
Bitfort
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February 28, 2018, 11:34:00 PM
Merited by Labrader (1)
 #12

From another POV this smells like centralization ... original idea behind cryptocurrency is that it should be free competition for everybody able to participate and with fixed conditions (not changeable whenever originator wants).
True, but I'm thinking of a scenario when the network is at it's first growing steps and all of a sudden a malicious group starts mining with, let's say 90% of all hashing power.

The only short-term defense I could think of is renting hashing power, to reestablish some fairness, where noone mines with >51% of hashing power. The downside is rentals cost real money. I was wondering if there were any other ideas to counteract such a move.

My guess is all devs face similar worries and had there been some simple and working solution it would have been already used by many coins.

I've seen some coins made first few hundred thousand blocks with very small reward. The reason behind could be to discourage huge mining farms while the word about new coin  spreads around, hopefully delivering enough miners with sufficient hashrate to prevent this happen.

But IMO it's more responsibility of miners rather than devs to prevent this happen. Just offer them enough pools to choose from and responsible miners (those who knows the threats of 51% attack) should keep the balance.
Though I was pretty disapointed with e.g. SIA network state after bitmain unleashed those A3 beasts ... people obviously didn't care of network at all, everybody was joining same pool no mater what.


MY HINTs
◄M► MINING
◄G► GAMBLING
◄E► EXCHANGE

◄E► (KCS) Kucoin-Staking, Auto-Lending, Trading-Bot
◄E► (BNB) Binance-Staking, Savings, 10% RefBack
◄E► (TRX) Poloniex-Staking, Lending, Fee Discount
◄E► (LEO) Bitfinex-Staking, Auto-Lending

◄G► Betfury-Faucet, Dividend Earnings (BFG holders, mine BFG by playing)
◄G► Bitvest -  Faucet, Bankroll Invest
◄G► CryptoGames-Faucet, Lotto
◄G► PrimeDice-Faucet

◄M► Prohashing (Multipool)-Payout in any coin, get 0.50% bonus for 30 days
◄M► MiningRigRentals (Marketplace)-buy hashrate or rent your miners

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