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Do you know why a single address of type contract is mining 38% of 0xbtc? Does it mean that a single person has find a way to mine as much 0xbtc as a whole mining pool? Plus how come a contract is able to mine an ERC20 token, I really don't get it please help me understand what is going on!

https://0x1d00ffff.github.io/0xBTC-Stats/?page=stats&#miners

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It does mean that an entity has found a way to mine as much, (or more) 0xbtc than some particular mining pools, however, it doesn't have to mean that the public address belongs to a particular individual, it could also be an unidentified mining pool of people which operates like the other already identified mining pools.

In regards to the mining process, this is how they explain the procedure:
0xBitcoin is basically mined using a simple Keccak256 (Sha3) algorithm using the following methodology:

keccak256(nonce, minerEthAddress, challengeNumber) < difficultyTarget

The nonce is a random number selected by the mining software. The mining software mines to try to find a valid nonce. If the above statement evalutates to true, then the nonce is a valid solution to the proof of work.

The challengeNumber is just a recent Ethereum block hash. Every round, the challengeNumber updates to the most recent Ethereum block hash so future works cannot be mined in the past.

The miner's Ethereum Address also defined as minerEthAddress, is part of the hashed solution so that when a nonce solution is found, it is only valid for that particular miner and man in the middle attacks cannot occur. This also enables pool mining. The difficulty target becomes smaller and smaller automatically as more hashpower is added to the network.

The entirety of the functionality is wrapped into a smart contract and the mining rewards are distributed by minting new tokens to the recipient(s) of concern.

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