Extracting More Value From Mining – How Fees Play into Rewards

extract more value from mining

How much value do you extract from your mining rig? More importantly, how much value do you want to? 

You’re always looking to get just a bit more out of your rigs, but predicting the best configuration at any given moment and manually managing that setup can be difficult and time-consuming, even for the most seasoned professional miner. 

The Bitcoin – or whatever cryptocurrency you prefer – that is awarded for adding a new block has its own value, of course. This “coinbase” provides the economic incentive for miners to secure the network although the value can  fluctuate over time, and often very rapidly.

Additionally, miners earn cryptocurrency from transaction fees associated with using a particular network. Those fees are determined by factors ranging from the amount transferred to the desired speed of the transaction; these vary from chain to chain. While profitability calculations largely consider the value of coinbases first, a fee economy that many predict will secure Bitcoin beyond the last coin mined might already be a lucrative way of keeping a mining operation profitable. 

When miners consider both transaction fees and coinbases in their models – and potentially switching to mine the most profitable chain because of the fees to be earned – the need for an efficient management solution becomes even clearer. In Titan, those decisions are made automatically, with changes implemented quickly based on the kinds of market fluctuations that can be overwhelming for any one miner to track and consider.

What it comes down to is this: More efficient management of hashing leads to 1)more blocks won and 2) more potential transaction fees, especially when pointed at the most optimal chain. 

Increasing the output of mining rigs is one of the core goals of Titan. By making mining hardware management easier and less time-intensive for miners of all kinds – hobbyists and professionals alike – they can better manage their revenue and expenses and, thus, profit. 

Generally speaking, when including average historical mining fees in profitability calculations, miners can better determine which blockchain is the best one to mine.

Make sure to follow @titan_mining on Twitter to find out more about how Titan can take your mining to the next level. And be sure to sign up for the beta