Instant-Payout Mining - BitPenny.com

[OneFixt]

BitPenny is BACK!
https://bitcointalk.org/index.php?topic=36371.0


BitPenny will be shut down indefinitely at 11:59PM 4/2/2011 EST due to continued and unsustainable losses.
Withdrawals will continue to be available.
The IRC channel will remain open.
BitPenny may be back in the future under a different model.

Thank you to everyone who has participated.

www.BitPenny.com

• Get paid a fixed amount* of BTC for every share z
  • Immune to cheating by timing attacks.
  • No need to wait for confirmations.
  • No competition with other users.
  • No registration required.
  • Withdraw at any time.
  • Near-0 variance.
  
  Connect your favorite miner with your bitcoin address as the username, and you're done!
  
  Please be sure to upgrade your miner to the latest version before joining.
  
  m0mchil's miner example
  poclbm.py -d 1 -u 1AaLK8yCgaqUhtmHEkmgfMhWLFSt9MhTLB --pass xyzzy -o bitpenny.dyndns.biz -p 8332
  
       Kiv's GUI frontend for m0mchil's miner (poclbm)
       the GUI has a built-in profile for BitPenny, and also supports balance checks and withdrawals
  
  jgarzik's miner example
  minerd --url=http://bitpenny.dyndns.biz:8332 --userpass=1AaLK8yCgaqUhtmHEkmgfMhWLFSt9MhTLB:xyzzy
  
  DiabloMiner
  DiabloMiner-YourOS.sh -u 1AaLK8yCgaqUhtmHEkmgfMhWLFSt9MhTLB -p xyzzy -o bitpenny.dyndns.biz -r 8332
  
  join #bitcoin-bitpenny for more information
  
  <sub>due to current protocol limitations, you may only withdraw in multiples of .01 BTC
  this is to avoid sub-cent amounts from being lost when coins are divided
  
  withdrawals are available through the website or through the GUI frontend for poclbm
  
  the service is currently in beta, so there may be changes
  
  *The current rate is equivalent to 90% of theoretical expected value.</sub>

[BitterTea]

Quite an interesting idea. How is the payout calculated?

[twobitcoins]

Current payout rate: 0.00173091 BTC

Current difficulty: 25997.87992881

0.00173091 * 25997.87992881 = 44.9999903475765171

So it looks like the site pays out 45 of every 50 BTC, keeping 5 BTC or 10% for the site operator.

I think it is a great service to provide a fixed payout, and I can understand the need to keep a percentage given that you are effectively insuring against variability of block finding success.  But it is important to be upfront about what you are charging for the service.

[OneFixt]

Current payout rate: 0.00173091 BTC

Current difficulty: 25997.87992881

0.00173091 * 25997.87992881 = 44.9999903475765171

So it looks like the site pays out 45 of every 50 BTC, keeping 5 BTC or 10% for the site operator.

I think it is a great service to provide a fixed payout, and I can understand the need to keep a percentage given that you are effectively insuring against variability of block finding success.  But it is important to be upfront about what you are charging for the service.

Thank you for the feedback!  I have added this to the description.

[stevenbucks]

umm sorry i am a bit new to bitcoin,

so how exactly do we get paid per hour ? or when ever we get a block? if its when ever we get a block - wouldnt it take 2 months or so :-(

[BitLex]

this server is (just like slush's pool) running at a difficulty of 1,
so you should be able to find a matching hash every hour or so even on slower CPUs.

you get paid for each and every hash you submit (and that has been accepted),
it doesn't matter if anyone solves a block or not and it also doesn't matter how many others use the system,
you get a fixed amount (0.00173091) for each hash you submit.

i've been running a miner on bitpenny for >16hours now with a performance of ~87.8%,
sure, it's less than "average" solo-mining, but a stable, steady income that you can count on (no need for luck) and it's paid instantly.

great service, especially for very slow miners that might not find a single hash within pool-round-duration-time,
guess they'll lose more on pools (the more the bigger a pool gets) than the ~12.5% on this server.

i'll keep testing it for a while

[stevenbucks]

this server is (just like slush's pool) running at a difficulty of 1,
so you should be able to find a matching hash every hour or so even on slower CPUs.

you get paid for each and every hash you submit (and that has been accepted),
it doesn't matter if anyone solves a block or not and it also doesn't matter how many others use the system,
you get a fixed amount (0.00173091) for each hash you submit.

i've been running a miner on bitpenny for >16hours now with a performance of ~87.8%,
sure, it's less than "average" solo-mining, but a stable, steady income that you can count on (no need for luck) and it's paid instantly.

great service, especially for very slow miners that might not find a single hash within pool-round-duration-time,
guess they'll lose more on pools (the more the bigger a pool gets) than the ~12.5% on this server.

i'll keep testing it for a while

is the hash submitted automatically? im sorry im a noob i know
thanks for explaining :-)

[BitLex]

it sure is,
when you connect to the server, your miner asks for some data and starts hashing that data,
all found "winning-hashes" are automagically sent to the server.

[stevenbucks]

it sure is,
when you connect to the server, your miner asks for some data and starts hashing that data,
all found "winning-hashes" are automagically sent to the server.

o wow thanks so much for the help!!

another (offtopic)question - are u accepting lindens for bitcoins :-)

[slush]

guess they'll lose more on pools (the more the bigger a pool gets) than the ~12.5% on this server.

Can you explain this more, please?

[BitLex]

i can try  

Alice runs a pool.
Bob's miner gets 500khash/s, which earns him about 1share every 2hours.
Bob's miner is connected to Alice's pool.
Alice's pool is that big, that it creates ~1block per hour.
Bob only gets a share of half the blocks created by Alice's pool, although he's connected 24/7.

[BitLex]

another (offtopic)question - are u accepting lindens for bitcoins :-)

of course i do. 

[stevenbucks]

another (offtopic)question - are u accepting lindens for bitcoins :-)

of course i do. 

Great - i sent you a pm - ty so much for answering my questions. Cant wait to do a exchange with you!

[gusti]

Is it possible to point more than one miner using the same payment address, or is only one miner per address ?

[BitLex]

it's fine running multiple miners with a single address.
your choice to use a single address, or one for each miner.

[Cablesaurus]

I was curious, what percentage does this pool "take"?

Sorry, might not be wording my question right, but I was wondering what you meant by it is running at 87.5%  specifically in comparison to regular mining

I'm also curious what this pool would compare to other pools in net income such as slush' pool, etc... I'm running 620 or so khash but I'm considering pooling cuz I just have to always end up rebooting my computer and such due to it also being a workstation

[OneFixt]

I was curious, what percentage does this pool "take"?

Sorry, might not be wording my question right, but I was wondering what you meant by it is running at 87.5%  specifically in comparison to regular mining

"Take" is actually a bit of a misnomer, as the server only gives out.  What happens is that the server pays you 90% of your statistical expected return, and keeps the actual return, which could be anything depending on luck.  You might lose a few percent over your expected value due to stale blocks resulting from network overhead, which is how BitLex ended up with 87.8% return.

At 620Kh/s, you will solve a block every 5 years, 37 weeks at the current difficulty.  Since difficulty will keep going up, you are likely to never actually solve a block on your own.

However, your expected return per hour is 50/50027, or .000999460 BTC/hour.

Mining at BitPenny at the current difficulty, you will solve one share on average every 1 hour and 55 minutes, 27 seconds, earning .00173091 BTC, the equivalent of about .0009 BTC/hour.

You could withdraw your first .01 BTC in about 11 hours and 7 minutes.

[slush]

Bob only gets a share of half the blocks created by Alice's pool, although he's connected 24/7.

Which is, of course, irrelevant. Bob gets all money corresponding to his hashrate. There is no reason why user with 1 hash/s should get a penny from every block.

Simply said, only difference between this and my pool is that  OneFixt take risk on his own, but cut payments for 10%. I don't take risk of mining probability, so miners payouts are not _so_ clear (but they are at least at daily scope), but I don't cut off payments (except donations).

Both modes fits to another audience, so it's OK, but don't say "this is better for XYZ miners, because those big players on slush's pool cut off your money", that's not true.

[slush]

"Take" is actually a bit of a misnomer, as the server only gives out. 

I like your service, but please, don't mist the reality that earn 50BTC against your pool is like mining standalone with higher than current difficulty, something around +10%. It is absolutely OK, as you take a risk of block variance and must be ready for unlucky times, but it is real cut off.

[dishwara]

I am started mining at 2500khash/s. Let see when i get atleast 0.1BTC