Hi,
Help needed. I am a newbie here.
I have come across terms like "mining", "pool", etc...
I don't know what these are, and in what way they are benefit for us?
Can someone explain or provide a link which has information about that...?
Thanks for your valuable time.
This is probably off-topic for this thread, but I will see if I can explain a little bit in detail what these terms mean.
Mining is simply turning your electricity into cryptocurrencies (litecoin, bitcoin, hobonickels, dreamcoin, etc etc). This is done with computations being performed by your GPU / FPGA / CPU / ASIC device. Generally speaking it goes in this order of power. Lowest to highest. CPU / GPU / FPGA / ASIC.
Now the speed at which you mine different algorithms is based upon the hardware used. Now when your device "solves" the computation the fastest you will have "mined" a block. A block is how many of a specific cryptocurrency will be awarded to you for mining that block. Bitcoin is 25 per solved block as an example. Difficulty must also be taken into account, which I am not very good at explaining. The higher it goes, the harder it is to find a block and thus you would need more hashing power to find a block. This is where pools come in.
A pool is a group of miners (you, me, anyone mining) that direct their hashing power to generally speaking, a website. This site will then direct your hashing power to whatever coin it is mining and it would be as if you were mining with the total amount rather then simply your own. This increases your chance at finding a block. Now when a block is found the difference in a pool is that your total hashrate is your % of the block reward. So you have 1000 KH and the pool has 5000 KH and finds a block. You would get 20% of that reward being that you had 1000/5000 of the total hashing rate.
A Gigabyte R9 270x 2gb GPU will get around 485 KH/s running on scrypt. This same device will yield around 2.9x that rate on the algorithm x11. So different algorithms give different hash rates, but you must take into account electricity costs / hardware costs / fees from pools which I will go into in a moment / to be able to determine your profitability.
Hope this helps you out.
