Difference between revisions of "BitPenny"

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(Reference the discontinuation of service announcement. Change tense.)
(Make reference to double spending be a link to the article.)
 
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BitPenny was the first [[Pooled mining|mining pool]] to introduce a fixed-rate, instant-payout model.  The service discontinued service indefinitely on April 2, 2011<ref>[http://www.bitcoin.org/smf/index.php?topic=3266.msg78046#msg78046 Re: Instant-Payout Mining - BitPenny.com]</ref>.
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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.
  
Each share submitted to BitPenny was worth a fixed (based on current [[Difficulty|difficulty]]) amount of bitcoinsThe user's account was credited immediately upon submission, and the balance was instantly available for withdrawal from the [http://www.bitpenny.com BitPenny website]This approach shifted 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.
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Client-side verification prevents the server from executing [[double-spending]] and other attacksAutomatic 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 networkThe 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 operated for-profit and thus self-insured against variances.<ref>[http://www.bitcoin.org/smf/index.php?topic=3266.0 Instant-Payout Mining - BitPenny.com]</ref>.
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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].
  
The service was first available for beta testing starting February 08, 2011.  The second round of testing began on March 2nd, 2011.
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==Background History==
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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.
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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==
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* [http://www.bitpenny.com BitPenny] web site
 
* [http://www.bitpenny.com BitPenny] web site
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* [https://bitcointalk.org/index.php?topic=36371.0 bitcointalk] forum thread
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* [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