Miners vs Nodes
Is a Bitcoin miner a node?
This article made me think the answer was yes, a Bitcoin miner is a full node.
A Bitcoin miner is a node in theory but not in practice.
Bitcoin was originally written so that CPU power from a personal computer could be used to extend the chain via proof of work (mining) based on signed transactions in the mempool and the existing confirmed blocks (full node).
In other words, the original Bitcoin Core client was a full node, a wallet, and a miner.
However, mining today is entirely separated from this original concept.
These days, miners are specialized hardware that cannot act as full nodes. They only exist to contribute to the hash rate (ASICs cannot act as nodes).
Most miners never see the block they are hashing for. They are not full nodes. This is because mining pools have abstracted away the construction of blocks.
Pools send miners a valid block template they have constructed, and miners send back partial proof of work as a representation of their hashrate contribution.
Thousands of full nodes verify each block, but the actual block construction is conducted by a small amount of entities.
Here is a simple illustration of this process:
- The user creates and signs the transaction.
- The transaction is broadcast to full nodes.
- The transaction is accepted and is added to mempool.
- Mining pools create block template and give to miners to solve proof-of-work.
- Miner hashes block header and finds winning hash.
- The block is broadcast and validated by full nodes.
- The transaction receives confirmations with each new block.
The transaction is considered final after 6 confirmations.
Bitcoin mining pools have changed the landscape of Bitcoin mining.
You do not need to win a block to earn some Bitcoin.
Efficient hardware and low cost of power are more relevant than luck.
Simple Mining works to maximize the profitability of our clients.
One way we do this is through stock nameplate power consumption.
(Nameplate power consumption is the power draw listed on the sticker)
Most miners consume 200W on average above their nameplate power consumption.
For example, let’s take an S21 200 Th/s miner, which has a 3500W nameplate power draw.
This machine actually runs at 3700W, and many companies would charge for the exact usage, leading to a higher bill.
Simple Mining clients only pay for the 3500W.
This is a savings of 5.7% on your hosting bill!
We also do not make you run your machine when it is not profitable.
You can pause an unprofitable machine anytime and resume hashing when conditions are more favorable.
We bill for your exact usage, so you only pay for what you hash (or even less, considering the nameplate power perk).
We have 3 all-in hosting rates.
- $0.07/kWh (1000 kW or more)
- $0.075/kWh (500 kW - 999 kW)
- $0.08/kWh (0 - 500 kW)
With 5.7% savings, your real-cost rates are:
- $0.0662/kWh
- $0.0709/kWh
- $0.0757/kWh
We offer some of the cheapest hosting rates for US Bitcoin mining.
We’re here to help mine Bitcoin profitably.