Category Archives: Mining

protoshares

Protoshares is an Ecoin that is directly tied to the value of the work being performed by the computers in the peer to peer network.  Computers that are mining for the Ecoin and processing transactions for the Ecoin are entitled to a proportional amount of the value derived from these activities.  Protoshares are actually the precursor to Bitshares which will be the ‘stock’ in a Distributed Autonomous Corporation (DAC).  The DAC is a peer to peer cloud computing company that in a sense is for hire.  The owners of the DAC are the holders of the Ecoin associated with the DAC.  For this initial DAC, the company that is launching it, is trading Protoshares for other Ecoins to provide seed capital to build the DAC.  The initial DAC is being developed by a company called Invictus Innovations Incorporated.

The DAC is conceived to be be a flexible peer to peer network for hire. For most other Ecoins, the mining computers only mine for the Ecoin and/or process transfers of the Ecoin.  The vision of the DAC is compensate the holders of the Ecoin proportionally to their coin holding for the mining, processing and other tasks being performed by the network.  Anyone may acquire shares in the DAC by mining or trading for Photoshares now and Bitshares later.

Once the company launches the DAC, the Protoshare holders will exchange their Protoshares for shares of the DAC called Bitshares.  The value of the Bishares is backed by the processing work of the DAC network computers.  Some of these services could include payment processing, asset trading, domain name services (DomainShares), and in the future any service that benefits from peer to peer network computing.  It is possible that in the future a DAC could operate like a cloud computing solution like Amazon Web Services and become a very strong wealth generator.

sucincessWhat is an Altcoin

An Altcoin is basically any ecoin that is not a Bitcoin or (increasingly) a litecoin.  There are over 60 Altcoins currently being mined and/or exchanged online.  Recently some of these Altcoins have had amazing appreciations.  One Ecoin called Sexcoin (SXC) recently shot up over 1000%.  Quarkcoin, Infinitecoin and Goldcoin are three coins that have also recently shot up in value.  To get an idea of how an altcoin might grow, start with how they are born.

How an Altcoin/Ecoin gets started

A developer or small group of developers will design and build the new Ecoin (Altcoin) and announced it in a forum.  The announcement will include a description of the Ecoin, the rules for mining, receiving and sending the coin, the coin wallet and the source code.  After the announcement, Ecoin miners will decide to mine for the new Ecoin or not.   If the Ecoin starts to get mined, the miners will  start to exchange the new ecoin for established Ecoins like Bitcoin or Litecoin within their communities.

If there is enough interest in the new Ecoin, one or more of the Ecoin exchanges will add the new coin to their exchange list.  After the Ecoin is added to an exchange, anyone with an account in the exchange and Ecoins to trade, can acquire the new coin through their online account. Once a coin has a place on the exchange it can grow or perish on its own merits.

Why some Alt coins take off

The Ecoin market is still very small.  Because it is small big buyers and seller tend to have more influence than in larger markets.  This seems especially true for new coin markets.  Right now a lot of the Ecoin wealth is concentrated in a few holders or groups of holders.  Most of this wealth was accumulated by mining or buying Bitcoins early on.  Alt coins are extremely helpful for these buyers to diversify their holding and as opportunities to get big ROI on very inexpensive coins.  For example, if Bitcoins cost $1000, a 100% appreciation makes the value of Bitcoin $2000.  Where as if you can trade 1 Bitcoin for 10,000,000 Altcoins, the Altcoin only needs to go from a value of 1/10 of a penny to 1/5 of a penny for that same appreciation.  This type of appreciation and even much higher appreciation of 1000% or more seems to be happening in the Alt coin market quickly.

What Alt coins to get NOW

Alt coins seem to follow growth pattern.  Typically there is an immediate spike in mining activity and then either a gradual climb or drop off.  Once a new coin is listed on an exchange the coin typically spikes in interest and then drops.  After that the coin typically bounces around or remains very flat.  Coins that remain very flat stay flat until they slowly perish or spike up.  Getting altcoins during the flat or in the beginning of a spike may work.

If you own Bitcoins or Lite coins, you can trade for Alt coins in exchanges.  You can not typically purchase Alt coins for cash.  You can get the Ecoin Club Altcoin Super Pac which includes:

Worldcoin: WDC is traded for BTC, margins are high right now in secondary markets which could signal a steep upward climb soon.

Zetacoin: ZET is traded for BTC, margins are high right now in secondary markets which could signal a steep upward climb soon, also ZET has had a slow and stable climb.

Casinocoin: CSC is traded for BTC.  There is a good amount of chatter on trading board about CSC and the name of the coin could help it gain good adoption for online gambling.

Centcoin: CET is traded for LTC.  The good news is also the bad news once it was worth more, now it is worth less.  This is the case of getting a coin when it is down and it can not go down much more.

Netcoin: NET is traded for LTC.  Netcoin is at a high right now, but there is strong chatter about this coin in the Ecoin community.

If you are interested in getting the Ecoin Club Altcoin pac, please submit your email and we will reply with additional information.

 

When a computer is mining ecoins, it is factoring extremely large numbers in an effort to match an RSA like encryption. Ecoins are rewarded to a computer when the computer solves the encryption problem and proves it to the network. Recently software engineer and Founder’s Dojo member Raj Shah explained hashing and quantum security and its relationship to bitcoins.

What is Ecoin Mining

bitcoin-mining-rigMining Bitcoins can be compared to mining minerals like gold, copper silver etc.  The way you mine gold is my digging in the ground, looking for something shiny, then testing to make sure that it is gold.  When you mine Ecoins, your shovel is a computer doing math and your testing kit is all the other computers on the Ecoin peer to peer network.  Instead of digging in the dirt to find something that looks like a Ecoin, your computer tries to solve a difficult math problem.  The math problem that has many correct answers, but not an infinite number of answers.

Since there is a finite number of correct answers to the math problem, as Ecoins are discovered there are less to find.

Mining computers requires a great deal of computing horsepower.  If you do not have a powerful computer and a cost effective power supply, you will not be able to mine Ecoins.  Unfortunately, this describes most of the people living in the world.

bitcoin-mining-rig

The first thing you need to decide is what Ecoin to mine.  You will want to understand how accepted the Ecoin is as a currency, how hard it is to mine and who is leading the evolution of the Ecoin.  Some Ecoins grow and some Ecoins fail.  A successful Ecoin has greater demand than supply, this is often reflected by the value of the Ecoin.  As an Ecoin becomes more valuable it also tends to become harder to mine.  The computing required to find the Ecoin becomes more expensive and more powerful. For example, right now only ASIC computers (computers with custom circuits for mining) will be successful mining for Bitcoin.  GPU (graphic cards) processing based computers are still successful for other Ecoin mining like Litecoins and Feathercoins.   A great shortcut to determine the best Ecoin to mine is to look at the market cap of the Ecoin, the relative difficulty to mine the Ecoin, and the community around the Ecoin.

The market cap of the Ecoin

The market cap of the Ecoin is  how much all the Ecoins in existence are worth (does not include undiscovered Ecoins).  This is important because as you will find out soon enough there are many Ecoin types to choose.  Picking an Ecoin with a reasonable market cap vs. other Ecoins is a quick way to get an idea of value and acceptance.  Also look at the percentage of the Ecoin that has been discovered to get an idea of the maturity of the market.  These are two factors that help to predict which Ecoins are going to grow and which Ecoins are going to perish.

Relative difficulty to mine the coin

The easier it is to mine the Ecoin, the more of it will find with your computer equipment.  Generally, the easier it is to find the Ecoin, the less computers are looking for it. As demand for the coin grows, the mining difficulty increases and so does the market cap.  Also keep in mind, the computer that youa re going to use to mine for eht coin.  if you have a MONSTER system you can go after slightly more mature and valuable Ecoins.  If you are using a typical desktop, it is probably best to Ecoin that is easiest to mine.  Balancing an Ecoin’s market cap and mining difficulty will help you pick the best coin to mine for you.

Ecoin community around the Ecoin

Taking  a look at the community around the Ecoin is sort of like getting to know the people who are building a company.  Most open source Ecoin projects are built and maintained by a core community of developers, enthusiasts and businesses.   Getting to know the team may help you gauge the strength of the coin and its potential for growth.

Lastly, when you are calculating the cost of mining vs. the reward, don’t forget about your power costs.  When you are mining, your computers are basically working full force, full time.  This costs power which is a real cost for mining.