I feel like it is a good thing and a bad thing at the same time.
In the near future, the concept of pools might get old if we get a better proof of work system.
If there is a coin with a human proof of work system, there will no need for pools I think. For now, we have to live with what's out there. The alt coin frenzy has to stop at some point.
Topic: Profit-switching pools destroying altcoins? (Read 683 times)
I dont think its poor design of the coins.
As more coines of an altcoin get on the market, the less a single coin will be worth and the higher the difficulty will get.
So if a big multipool starts mining a recent coin the offer grows, decreasing the value.
So in a way big pools are killing coins.
As more coines of an altcoin get on the market, the less a single coin will be worth and the higher the difficulty will get.
So if a big multipool starts mining a recent coin the offer grows, decreasing the value.
So in a way big pools are killing coins.
Perhaps a solution is to vary the block reward depending on the amount of time it takes to solve the block. For example, instead of rewarding 25 coins for a 10 minute block, reward 0.04167 coins for every second it takes to solve a block.
As a result, the amount earned by mining no longer depends on the difficulty, so pools will gain no advantage by throwing large amounts of hashing power at a coin when the difficulty is low. The amount made by mining will depend solely on the block reward schedule and the current value of the coin.
As a result, the amount earned by mining no longer depends on the difficulty, so pools will gain no advantage by throwing large amounts of hashing power at a coin when the difficulty is low. The amount made by mining will depend solely on the block reward schedule and the current value of the coin.
So I've been mining for two weeks on middlecoin and the payouts have been decreasing in terms of mBTC per Mh. The pool hashrate is increasing massively, including some industrial miners in China with 700 MH! I realize that the larger the hashrate of the pool is, the less potential altcoins it can mine because the smaller coins do not have the network and market depth to support it.
I tried RonPaulCoin for a day and wondered why the confirmations were so much slower than they were supposed to be. I then came across this very enlightening thread on cryptotycoons about how the profit-switch pools are killing RPC by jacking up the difficulty and then leaving.
http://ronpaulcoin.cryptotycoons.com/RPCForum/index.php?topic=44.0
So, with more and more miners using them, are profit-switching pools killing the altcoins? Or is it simply the poor design of some of these coins?
Thoughts?
I tried RonPaulCoin for a day and wondered why the confirmations were so much slower than they were supposed to be. I then came across this very enlightening thread on cryptotycoons about how the profit-switch pools are killing RPC by jacking up the difficulty and then leaving.
http://ronpaulcoin.cryptotycoons.com/RPCForum/index.php?topic=44.0
So, with more and more miners using them, are profit-switching pools killing the altcoins? Or is it simply the poor design of some of these coins?
Thoughts?
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