Bitcoin share mining
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Jon Gulley, a junior at Oklahoma Christian University, created and leads SudoMine, a startup company using the crypto-currency known as BitCoin.
“For the general person, [BitCoin] is a different currency, ” Gulley said. “Instead of a government deciding how much it is worth, the people and the math behind the system decide how much it is worth. People use BitCoins for transactions; other people use computers to process the transactions. The people who process the transactions get paid for processing. SudoMine is purchasing the hardware to process the transactions.”
Gulley started the company as a Limited Liability Company and is now selling shares to those who are interested in investing.
“The company I am starting is named SudoMine, registered as an LLC in Oklahoma, ” Gulley said. “SudoMine is going to expand to do multiple things, but right now we are focused on BitCoin mining and selling mining shares.”
There is a direct correlation between processing power and shares of the company.
“Buying a share is equal to a certain amount of processing power, " Gulley said. "We are starting at 100 megahash of BitCoin processing power per share, and that gives you the dividends of that share. The funds from the shares are taken by the hardware to provide the processing power for that.”
The transactions that SudoMine handles require a more in-depth explanation to help understand the BitCoin transaction process.
“The BitCoin algorithm pays you out a certain amount of BitCoin when you process a group of transactions known as a ‘block’ of transactions, ” Gulley said. “Currently you get 25 BitCoins if you finish a group of transactions.”
To solve a ‘block’ of transactions, it requires more processing power then the average computer is able to provide.
“Most people do not have the processing power to complete a block of transactions by themselves, so they do it in mining pools, ” Gulley said. “There are mining pools such as Eclipse Mining Consolium where a bunch of people work together to solve the block and they split the work.”
Source: www.talonatoc.com
Power usage/cost and mining
I found this quote earlier and though i would share. it seems that there is a point where the cost of bitcoin mining outweighs the benefit.
"I've done some testing. I tried to create conditions for success.
1. I had handy an M18 R2 - with dual 7970s.
2. I work a lot of hours and my kit is used by my employer. In trade off I use some juice for testing.
3. CPU bitcoining is worthless - just forget about it totally. Anyone telling you that only high power GPUs, FPGAs or ASICs offer a return are correct, and thats before ever discussing power.
4. I am vaguly able to generate 0
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