The term “mining” refers to adding new transaction records to the Bancor public ledger of transactions. This record is known as the block chain. The block chain confirms transactions and allows only correct transactions to go through because it verifies that everything has taken place.
Mining is intended to be CPU demanding in order for miners to find consistent numbers of blocks each day. Bancor’s hash cash proof-of-work function is utilized. You may also track your hash rate while you mine, which is the speed in which your hardware mines.
The first and most important goal of mining is for Bancor to achieve a tamper-resistant consensus. Mining is also the mechanism by which new Bancor Coins are introduced into the system: Miners are rewarded with newly created coins for their validation work. This helps to distribute new coins in a decentralized manner while also incentivizing individuals to protect
Introduction to Mining
The difficulty is the measure of how difficult it is to find a new block. It is recalculated every 2016 blocks and is based on how much hash power is on the Bancor network. As more miners join, the rate of block creation will go up, which in turn will cause the difficulty to rise to compensate. This will adjust the rate of block creation, which will keep the rate of block creation on average to 1 per minute.
When a block is discovered by your computer, you will be awarded a certain number of coins, which has consensus by all people in the network. Currently the award is 128 coins; this value will half every 1,100,000 blocks (approximately every 2 years.)
It is possible to mine Bancor Coin with the CPU in your computer. This is the quickest way to get started. To do this, download the wallet software. Once you have your wallet software downloaded and installed, edit the bancorcoin.conf file and add generate=1. This method of mining is not very power efficient, and may cost more in power then the Bancor Coin you will generate is worth.
Mining is also possible using the GPU (video card) in your computer. This is more efficient then cpu mining, however not nearly as efficient as ASIC mining. To do this you will need a mining software that is capable of using your GPU
Currently the most efficient way of mining is with an ASIC (application-specific integrated circuit.) The setup on these will vary depending on what device you get. However cgminer supports many types of ASICs. Any ASIC that can be used to mine Bitcoin, can also be configured to mine Bancor Coin. ASICs very greatly on speed and cost.
In the future, as more and more miners compete for the limited supply of Bancor blocks, individuals will find that they could work for months without finding a block and receiving reward for their mining efforts. This makes mining individually something of a gamble. To address the variance in their income miners can organize themselves into pools so that they can share rewards more evenly. We will notify you in our News section as pools add Bancor Coin.