BitPenny: Difference between revisions

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BitPenny is the first [[Pooled mining|mining pool]] to introduce a fixed-rate, instant-payout model.  Each share submitted to BitPenny is worth a fixed (based on current [[Difficulty|difficulty]]) amount of bitcoins.  The user's account is credited immediately upon submission, and the balance is instantly available for withdrawal from the [http://www.bitpenny.com BitPenny website].  This approach shifts the risks associated with bad luck, cheating, and transaction-reversal [[Weaknesses|attacks]] from the user to the pool operator, resulting in a virtually zero-variance payout curve.
BitPenny is a bitcoin mining pool that uses an [https://github.com/ForceMajeure/BitPenny-Client open-source client] to protect against potential abuses and [[Weaknesses|security vulnerabilities]] resulting from centralized mining power.


The service is operated for-profit and thus self-insures against variances.<ref>[http://www.bitcoin.org/smf/index.php?topic=3266.0 Instant-Payout Mining - BitPenny.com]</ref>.
Client-side verification prevents the server from executing [[double-spending]] and other attacks.  Automatic fail-over to solo mining allows the pool to disintegrate into individual mining nodes and to continue supporting the bitcoin network in a case of server unavailability, preventing a catastrophic slowdown of the entire network. The instant solo fail-over also works to increase miner efficiency by utilizing time that would normally be spent waiting for work from the server due to network lag or other issues.


The service was first available for beta testing starting February 08, 2011.  The second round of testing began on March 2nd, 2011.
BitPenny uses a delayed pay-per-share (CPPSRB) payout model that is immune to pool-hopping.  Shares are paid in last-in-first-out order and never decay in value, with transaction fees included in order to help avoid large backlogs of unpaid shares.  More details can be found at the [http://www.bitpenny.com BitPenny website].
 
==Background History==
 
BitPenny is the second-oldest mining pool, first available for beta testing starting February 08, 2011.  It was the first pool to introduce the Pay-Per-Share model, instant payouts, and address-only connections that do not require registration or a password.


==Community==
==Community==


The IRC channel [irc://irc.freenode.net/bitcoin-penny #bitcoin-bitpenny] ([http://webchat.freenode.net/?channels=bitcoin-bitpenny&uio=d4 webchat]) offers conversation with fellow miners and information from BitPenny's operator.
The IRC channel [irc://irc.freenode.net/bitpenny #bitpenny] ([http://webchat.freenode.net/?channels=bitpenny&uio=d4 webchat]) offers conversation with fellow miners and information from BitPenny's operator.


==See Also==
==See Also==


* [[Pooled Mining]]
* [[Pooled Mining]]
* [[Bitcoin Pooled Mining]]


==External Links==
==External Links==


* [http://www.bitpenny.com BitPenny] web site
* [http://www.bitpenny.com BitPenny] web site
* [https://bitcointalk.org/index.php?topic=36371.0 bitcointalk] forum thread
* [irc://irc.freenode.net/bitpenny #bitpenny] [http://webchat.freenode.net/?channels=bitpenny&uio=d4 webchat] IRC channel


==References==
<references />


[[Category:Pool Operators]]
[[Category:Pool Operators]]

Latest revision as of 17:24, 18 June 2012

BitPenny is a bitcoin mining pool that uses an open-source client to protect against potential abuses and security vulnerabilities resulting from centralized mining power.

Client-side verification prevents the server from executing double-spending and other attacks. Automatic fail-over to solo mining allows the pool to disintegrate into individual mining nodes and to continue supporting the bitcoin network in a case of server unavailability, preventing a catastrophic slowdown of the entire network. The instant solo fail-over also works to increase miner efficiency by utilizing time that would normally be spent waiting for work from the server due to network lag or other issues.

BitPenny uses a delayed pay-per-share (CPPSRB) payout model that is immune to pool-hopping. Shares are paid in last-in-first-out order and never decay in value, with transaction fees included in order to help avoid large backlogs of unpaid shares. More details can be found at the BitPenny website.

Background History

BitPenny is the second-oldest mining pool, first available for beta testing starting February 08, 2011. It was the first pool to introduce the Pay-Per-Share model, instant payouts, and address-only connections that do not require registration or a password.

Community

The IRC channel #bitpenny (webchat) offers conversation with fellow miners and information from BitPenny's operator.

See Also

External Links