[Decryption] Calculation method of mining income

Mining revenue has always been the most core indicator of mining.

How to evaluate the daily income of mining a certain coin with a mining machine? What are the factors that affect mining income? There are numerous income calculators and mining income prediction tools for various coins on the market. What methods do these tools use to estimate the daily mining income?

The author takes BTC and ETH, two typical cryptocurrencies, as examples to briefly introduce the calculation method of mining income.

Before calculating mining revenue, we must first understand several concepts: Difficulty, Hashrate, Block Reward, and 24h Estimated mining revenue.

Knowledge Points

Difficulty is a measure of the difficulty of mining, that is, the difficulty of finding a HASH value lower than a given target.

In simple terms, mining difficulty refers to the difficulty of finding a legitimate new block.

Hashrate refers to the number of mining results (shares) submitted by a mining machine per unit time.

Block Reward refers to the cryptocurrency reward given by the blockchain to miners after mining a new block. It is the main source of income for miners.

The 24h Estimated mining revenue is the estimated time it takes for a miner to mine a block based on the miner's computing power and mining difficulty, and is calculated by dividing the block reward by the number of days.

This value does not take into account the influence of factors such as luck. It is a theoretical value and is also the most important indicator for evaluating miners' mining income.

In order to obtain mining income, miners need to mine legal new blocks and obtain corresponding block rewards. At present, the difficulty of mining major currencies is too high. According to the calculation of the computing power of most miners, it may take 1 year or even several years to mine legal new blocks.

Therefore, miners can connect their computing power to the mining pool, pool mining, and share block rewards, so that even with lower computing power, they can obtain mining income every day.

Before estimating this “mining income”, let’s define a few parameters:

Define several parameters

P: Theoretical mining income per day

D: Current mining difficulty

H: The computing power of the miner, in hash/s, that is, the miner can submit "H" mining task calculation results per second

R : Block Reward

The calculation method of mining income is as follows:

1

Calculation method of BTC mining income

The mining difficulty displayed by Bitcoin has been converted once. Under the mining difficulty corresponding to "1", 248/65535≈232 hash operations are required to theoretically obtain a legal new block.

Therefore, in theory, when the mining difficulty is D, (D×232) hash operations are required to mine a legal new block, and as a block reward, R BTC is obtained. If the miner's computing power is H, then the time required for him to complete (D×232) hash operations = (D×232)/H seconds.

Theoretically, the mining income per second of a miner = R ÷ (D × 232) / H BTC. There are 24 hours in a day, and there are 24 × 60 × 60 seconds. The estimated mining income of BTC per day is:

Example:

Current BTC difficulty D = 6,379,265,451,411

Each BTC block reward R=12.5 BTC

1Ph/s computing power

So: P = 0.03941788 BTC

2

ETH mining revenue calculation method

The mining difficulty of ETH is relatively straightforward. It means that when the difficulty is D, theoretically D hash operations are required to obtain a legal new block.

Therefore, the estimated daily mining revenue of ETH is:

Example:

Current ETH difficulty D=1842.67 T

Each ETH block reward R=2 ETH

1Gh/s computing power

We can get: P = 0.09377696 ETH

BTC and ETH are two typical POW currencies. The mining revenue calculation methods of other currencies are similar to those of BTC and ETH. Interested miners can try to calculate it themselves according to the above method.