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Date: Thu, 04 Jul 2013 13:20:14 -0700
From: Jeremi Gosney <>
Subject: Re: Parallella: scrypt

On 7/4/2013 9:32 AM, Solar Designer wrote:
> Question to folks in here who are more familiar with cryptocurrency
> mining - what would be good resources for Rafael to quickly familiarize
> himself with Bitcoin and Litecoin?  Maybe some pages on the wiki at
> ?  This includes pages on the
> protocol, etc. is a great resource, if not the best resource. forums like are indispensable as well.

> I will comment on Rafael's confusion below, but I'd appreciate it if
> someone more familiar with this reviews my comments and corrects me if
> I'm wrong about anything.
>> I would like confirm this:
>> Cgminer divides the work between the different host connected to the mining
>> pool,
> I think it receives portions of work - so the pool (and not the miner)
> divides the work.

Correct, the client/pool is responsible for handing out work and
ensuring no duplicate work is being done.

Your miner connects to a client or a pool, and submits a getwork request
(I'm using "getwork" loosely here, since getwork itself is deprecated,
but the concept is the same.) The client/pool replies with the current
block and the nonce. The miner increments the nonce until it finds a
solution for the current block, or until the nonce overflows, or until a
new block has been detected on the network.

>> it will be shared with the pool in
>> order to generate the Litecoins that would be shared between the all hosts.
> Yes.  So miners are paid even when they're unsuccessful at generating
> any blocks (as long as some other miners in the same pool are occasionally
> successful).  Miners also share some proof-of-work even when they're
> unsuccessful at achieving a low enough hash value to generate a block.
> They need to do this in order for the pool to credit them for trying -
> but I am not familiar with this at all.

It completely depends on the pool payout method. You can read all about
Prop, PPS, PPLNS, SMPPS, ESMPPS, POT, DGM, arbitrary scoring, and a
dozen other payout methods if you'd like, but as the miner itself does
not receive or handle any coins, none of it is relevant from a mining
perspective. If you're mining in a pool then your coins go to the pool,
and if you're solo mining then your coins to go your local wallet. The
miner doesn't touch, see, or care about the coins.

>> Also Cgminer can work in solo mode
> Do you mean without a pool?

There is no "solo mode." From a miner's perspective, there is no
difference between pooled mining and solo mining. All the miner cares
about is where to send getwork requests. If you're solo mining, then you
will have your miner connected to your local client. If you're pool
mining, then you will have your miner connected to a pool's client. From
the miner's perspective, it's one in the same.


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