PPLNS will work for demand response

Bitcoin mining has been a long way since the GPU and the basement setup. At that time, the miners developed in numerous ways. For example, ASICS is now a standard, not a GPU. Moreover, the enterprise grade player has brought about the size and institutional recognition of entering the field to open a new border and open the door to an irreversible place for small miners. Today, mining environment is a core strategy, not a case of grid service, reduction strategy and energy market participation. As the surrounding world moves forward, there is a question we keep listening from the miners. Can PPLNS adapt?

The miners who work closely with a lot of miners, especially energy providers, or integrate demand response mechanisms, have suspected PPLN. They are worried that they will punish the stoptime and compensate only the hashrates that have not been interrupted. It is a bad deal for those who reduce machines, support grids, or provide other services.

This fear is not a basis. It goes back to the pivotal moment in the recent past of the mining industry. It seems to have been sealed to many people for a lot of payments in PPLNS style. Nakjin between Riot and Braiins Pool.

At the time, Braiins was using a score payment system. The score designed in 2011 was designed to solve the pool hoping problem. When the miner goes beyond the pool and uses the reward system. There was also a misunderstanding that the score was PPLNS -style payment system, but according to the Bible of Rosenfeld about the solving payment system, scores and PPLN are clearly different payments. The main difference is the way to explain the stock, especially the rolling window with the index collapse. PPLNS, on the other hand, is a payment system product line with a variety of fixed lengths.

As about how the score worked on this stored website, you can see that after 90 minutes, your hashrate no longer existed in the pool. This means that the moment the miner begins mining, the ratio of compensation reaches fairly quickly to the fair value of the hashrate. On the other hand, when the miner stops mining, it falls like the same as the GIF below.

This may have worked well in the era of cowboys and hackers, but it did not keep in mind today’s complex mining environment. Obviously, it is not clear that the miners’ intentionally and profitable to get offline to stabilize the energy grid or bid in the auxiliary market. To score, this kind of action is no different from the pool hopper.

Therefore, RIOT left Braiins and mentioned concerns about payment machines, and sent shockwaves through the mining world. Due to the misunderstandings mentioned above, the defects of the score system were unfairly projected to a wider category, PPLNS caught a lost bullet in the process, and the industry threw a baby with Bathwater.

But the mining world has changed, and now it is time for Phoenix to happen in his ashes.

Slice: Mechanism for payment for the 21st century grid

Input one partModern open source Stratum-V2-prepared payment system created by the DMND team. Rethinking how the miners are paid by the improvement and evolution of PPLN, the compensation is calculated, and the most important thing is how to respect how the down time is treated.

score. While preserving the rights of the miners, you have the right to build your own block template with SV2.

In the core, slice is about fairness and transparency. It preserves the default idea of ​​PPLN. PPLNS (actual miners pay miners in proportion to solving blocks, while modernizing today’s distributed mining environment.

The main innovation is how the slice structure compensates for the calculation and the way of operating the look back window. Instead of treating the swimming pool, the slice breaks the time with a small and dynamic “slice” of the work to properly distribute the fee components. This slice represents the placement of the stock submitted for a certain period of time. Here you control the fee amount of Mempool and compare the other work templates and score the financial value they represent. When a block is found, the slice distributes the block subsidies and transaction fees separately. Subsidies are assigned proportionally by hashrates, while fees are distributed based on hashrates and financial value.

This is especially related in the world where the miners can choose their own trading set. Some miners can prioritize high -end MEV style bundles. Others can exclude certain types of transactions for ideological, political or technical reasons. The slice requires the miner to be compensated without punishment for stopping or strategic energy determination within each slice. This article can be helpful to learn more for those who are curious.

We ask for a response without a penalty

The slice especially attractive to the miners who participate in demand response or reduction program is that it does not give you disadvantages due to offline.

This is because the slice is relaxed and does not corrupt payment. Your shares remain in the PPLNS window (a recent rewarding rolling window of recent payment). In this way, each stock is treated independently, and the slice is expected to receive eight payments because it uses an 8 block rolling window. Each valid stock can be paid on average in the next 8 block. Regardless of how big the pool is, you will not have a terrible luck to eat bad days without blocks, break up, disconnections, find blocks in the swimming pool.

In other words, the miners can reduce power, support local grids during the peak demand, and collect fair cuts from the blocks found after the performance is resumed. Most importantly, it is the most important in the window even if the stock is still in the window. In other words, if the pool is full of bad luck, the miner will be requested to perform a demand response, and even if the pool finds a block during the down time, the miner will receive a fair stake whenever an online state. This is because each stock generated during that period is activated and receives an average of 8 blocks.

This is not a solution. This is the function. Participation in the frequency regulatory market, a sharp decrease in grid emergencies, or simply optimizing peak prices, completely compatible with modern energy strategies and slices that require flexibility.

For example, let’s assume that miners are mining in the pool and the swimming pool has not yet found a block of the day. This means that the miners have not yet paid for that day because the pool has not yet found a block. The miner is now closed to provide auxiliary services during the summer load for several hours. During that period, the swimming pool finds a block. In the score -based swimming pool, the miner did not see a single SAT when the collapse had a complete effect after 90 minutes. However, even if the pool finds a block after 30 minutes, the miner can hardly see anything due to the index corruption. On the other hand, the miners will receive all the stocks mined per day. This is because each stock receives an average of eight payments. Therefore, the miners will benefit in good times and will not be punished at bad times.

Payment transparency and audit

In addition, slice not only modernizes payment fairness, but also minimizes trust in pool operators. All slices can be completely grateful. Each stock can be traced, indexing and publicly verified by all miners, so miners can independently check the ratio of block compensation. There is no black box, “Believe me.”

And if the pull operator attempts cheating (by injecting fake stocks into dilution payments), the manager can challenge the integrity of the slice. The expansion of the work declaration on the slice dependent Stratum V2 includes a mechanism to publish shared data and check whether the muffle roots and each sharing corresponds to the actual calculation work.

In the case of miners who are interested in decentralization, slice is not just a payment system but a responsible tool.

From defense to strategy

The switch from the score to the slice represents more than a technology upgrade. Mental change. Mining pools no longer need to defend bad actors by punishing everyone. Instead, they can structured payment in a way that reflects reality. The miner is a sophisticated participant who works in the energy ecosystem as well as the Bitcoin block chain.

Using a slice, PPLNS stops responsibility and is a strategic advantage. This can increase profits, more transparency and audit, and smooth integration with grid services.

And in a world where the operating time is optional but cannot be negotiated, the enterprise -class miner needs. Today, a strategic swimming pool partner, we bring the future, bring the future, and the miners can make more money with the same hardware.

This is a guest post by General Kenobi. The expressed opinions are entirely their own opinion and do not necessarily reflect the opinions of BTC Inc or Bitcoin magazines.