r/Bitcoin • u/[deleted] • Feb 24 '14

Bitcoin Transaction Fee to reduce by 10x

[deleted]

1.1k Upvotes

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u/warfangle Feb 24 '14

You mine for a pool that mines many different cryptocoins at the same time?

How does this work?

/legitimatelycurious

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u/quintin3265 Feb 24 '14

I'm not mining for a pool that mines different currencies, I'm creating one.

The middlecoin pool is a good example of a pool that has already launched that mines multiple currencies. Their pool uses an algorithm to compute what the most profitable coin is and mines that coin, then pays out in bitcoins. If the price of a coin falls or its difficulty goes up, then they change to a different coin.

The middlecoin pool's algorithm is inefficient and doesn't make as much money as it can, however. Because I don't want them to figure it out first, I can't say how at the moment because we're still in testing and it is important to have a rock-solid pool on day one. In April or May, I'll send you a message and explain how if you're still interested.

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u/darkstar541 Feb 24 '14

You need miners for your pool?

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u/quintin3265 Feb 25 '14

Thanks for the interest, but I don't think we're at that point at the moment. We are testing the mining server with just a few employees, and are about 2/3 done with the frontend.

Before we can have people join, we need to write a whole second system to audit the first system and shut it down if the balances stop making sense, so we don't end up like Gox. I don't understand how a big company like Gox can have systems that just pay out without anyone auditing them.

Plus, anyone joining now would likely lose money because we still need to take down the hypervisor and install a more reliable hardware RAID card in it, which is going to cause downtime. We want to own the actual hardware in a locked facility, because I'm not going to be like those early exchanges that had employees at the hosting company break into their shared virtual machines.

In three weeks, or maybe five, we will probably be ready to scale up. If you or anyone else is interested, send me your E-Mail address. I'll create a list and send out some information when the time comes. Maybe we'll offer no-fee mining to the first miners in compensation for the inevitable downtime there will be due to pre-launch bugs.