Szmigielski - Bitcoin essentials: gain insights into Bitcoin, a cryptocurrency and a powerful technology, to optimize your Bitcoin mining techniques
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Copyright 2016 Packt Publishing
All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, without the prior written permission of the publisher, except in the case of brief quotations embedded in critical articles or reviews.
Every effort has been made in the preparation of this book to ensure the accuracy of the information presented. However, the information contained in this book is sold without warranty, either express or implied. Neither the author, nor Packt Publishing, and its dealers and distributors will be held liable for any damages caused or alleged to be caused directly or indirectly by this book.
Packt Publishing has endeavored to provide trademark information about all of the companies and products mentioned in this book by the appropriate use of capitals. However, Packt Publishing cannot guarantee the accuracy of this information.
First published: February 2016
Production reference: 1170216
Published by Packt Publishing Ltd.
Livery Place
35 Livery Street
Birmingham B3 2PB, UK.
ISBN 978-1-78528-197-6
www.packtpub.com
Author
Albert Szmigielski
Reviewer
Kevin M. Fitzgerald
Commissioning Editor
Edward Bowkett
Acquisition Editor
Ruchita Bhansali
Content Development Editor
Sanjeet Rao
Technical Editor
Saurabh Malhotra
Copy Editor
Sneha Singh
Project Coordinator
Judie Jose
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Indexer
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Production Coordinator
Shantanu N. Zagade
Cover Work
Shantanu N. Zagade
Albert Szmigielski is a thinker, a computing scientist, a software engineer, and a blockchain professional. He holds a BSc in Computer Science and an MSc in Digital Currency. He has been involved in a number of start-ups and software projects. He believes in a decentralized, distributed nature of storing information, and hence has an interest in Bitcoin and blockchain technology.
Albert is a researcher at CryptoIQ and a mentor at the Blockchain Institute. He frequently contributes to his blog at blog.cryptoIQ.ca.
I would like to thank Carla Miller for her support and general feedback. I would also like to thank my family; they give meaning to my life.
Kevin M. Fitzgerald is the platform architect for Okanjo.com. He has well over a decade of development experience in education, medical systems, and start-ups. He has been tinkering with the Web since dial-up modems went mainstream.
He is active in the Open Source community and has contributed to the Mono project and also to Umbraco communities. He continues to be active on GitHub, working with the latest technologies and projects. He has also contributed to the book WebGL Game Development by Sumeet Arora.
He and his wife, Luciana, are celebrating their seventh year of marriage and enjoy long walks on the beach with their daughter, Rosalia, talking about Node.js, C#, and Bitcoin.
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Surely, by now you have heard of the phenomenon called Bitcoin. Is it digital money, is it a payment system, is it a network, or is it something else? The answer is yes to all the previous questions. Bitcoin is all of those and more. In this book, we will concentrate on the mining aspect of Bitcoin. Mining is how new bitcoins are created and how transactions are accepted into the Bitcoin blockchain. We will show you how to mine for yourself, if you are interested. We explain step-by-step what is necessary and how to do it. CPU, GPU, FPGA, and ASIC mining is also discussed. We will examine solo mining and pool mining. We will spend a little bit of time taking a look at large mining operations. Finally, we will speculate what the future may look like in the mining world of Bitcoin.
, Bitcoin Wallets and Mining Software , gives an overview of Bitcoin wallets: hardware, software, full and thin clients. The chapter also discusses mining software.
, CPU Mining , looks at Bitcoin mining using a CPU. It covers everything you need to get started.
, GPU Mining , concentrates on GPU mining. It covers GPU driver setup, mining software setup, and it touches upon practical mining issues. Examples are included.
, FPGA Mining , examines FPGA mining, including software, drivers, and a discussion of best practices.
, ASIC Mining , looks at ASIC mining in detail. We set up the software that is needed to mine and we show you practical examples of mining with ASICS.
, Solo Versus Pool Mining , explains solo and pool mining and weighs the pros and cons of both ways of mining.
, Large Scale Mining , looks at mining as a business. There are a handful companies that decided to mine for profit. They represent the bleeding edge in mining techniques.
, The Future of Bitcoin Mining , speculates how mining may evolve in the future. We look at the possibility of mining becoming more centralized and the possibility of mining becoming decentralized.
You will need a computer, preferably running Linux, but Windows and OS X is fine as well. You will also need an internet connection. If you'd like to try mining with a GPU, FPGA, or ASIC, you would need to have one (or more) of those hardware pieces. All software is open source and can be downloaded from the internet. We provide links in the chapters to the required software.
If you have never mined before, this book will ensure that you know what mining is all about. If you are familiar with Bitcoin mining, then it will help you to optimize your mining operations at a deeper level. A basic understanding of computers and operating systems is assumed and some familiarity with cryptocurrency basics would be an added advantage.
In this book, you will find a number of text styles that distinguish between different kinds of information. Here are some examples of these styles and an explanation of their meaning.
Code words in text, database table names, folder names, filenames, file extensions, pathnames, dummy URLs, user input, and Twitter handles are shown as follows: " Execute the
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