We must take a quick look at how mining works, without going into the deeper details.
Mine-able cryptocurrencies are PoW (Proof-of-Work) systems. What this means is that the act of mining a coin in a pure PoW system requires the mining hardware to do some kind of work and prove to the network that it has done this work, an activity for which the owner of this mining hardware is rewarded. One way, which is the most commonly used in the cryptocurrency world, to showcase proof of work, is by solving hashes. The number of hashes found by a mining hardware in a second is called the hashrate of that particular hardware.
There are so many mining hardware that are contributing to mining a particular cryptocurrency. The term network hashrate refers to the sum total of all the hashrates that each mining hardware mining this particular cryptocurrency offers. The amount of contribution your hardware makes to the mining network of this particular cryptocurrency can be calculated in terms of how much percentage of the total network hashrate is coming exclusively from your mining hardware.
For example, if the network hashrate of a particular cryptocurrency is 1000MH/s and the hashrate provided by your mining rig is 1MH/s, your rig contributes to 0.1% of the total network hashrate.Accordingly, you could aregue that if you are solo mining using your rig, for every 1000 blocks mined by the network, one block will be mined by you. Accordingly, you can calculate your earnings and hence your profit by looking at the reward per block for the particular cryptocurrency, amount fetched from transaction fees, cost of acquiring the mining rig, power and ancillary costs, time consumed, current market value of the mined cryptocurrency, etc.
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Mine-able cryptocurrencies are PoW (Proof-of-Work) systems. What this means is that the act of mining a coin in a pure PoW system requires the mining hardware to do some kind of work and prove to the network that it has done this work, an activity for which the owner of this mining hardware is rewarded. One way, which is the most commonly used in the cryptocurrency world, to showcase proof of work, is by solving hashes. The number of hashes found by a mining hardware in a second is called the hashrate of that particular hardware.
There are so many mining hardware that are contributing to mining a particular cryptocurrency. The term network hashrate refers to the sum total of all the hashrates that each mining hardware mining this particular cryptocurrency offers. The amount of contribution your hardware makes to the mining network of this particular cryptocurrency can be calculated in terms of how much percentage of the total network hashrate is coming exclusively from your mining hardware.
For example, if the network hashrate of a particular cryptocurrency is 1000MH/s and the hashrate provided by your mining rig is 1MH/s, your rig contributes to 0.1% of the total network hashrate.Accordingly, you could aregue that if you are solo mining using your rig, for every 1000 blocks mined by the network, one block will be mined by you. Accordingly, you can calculate your earnings and hence your profit by looking at the reward per block for the particular cryptocurrency, amount fetched from transaction fees, cost of acquiring the mining rig, power and ancillary costs, time consumed, current market value of the mined cryptocurrency, etc.
Share your knowledge.