PacketCrypt is a bandwidth hard proof of work, this means it requires lots of bandwidth to mine. Miners collaborate with one another by sending small messages (called Announcements) and the sending of these messages requires a large amount of bandwidth.
Miners who are working in collaboration with one another are members of a mining pool, therefore all mining of PacketCrypt is done in pools.
PacketCrypt mining is split into two distinct stages:
- Announcement Mining - Using your CPU to create Announcements
- Block Mining - Collecting Announcements from Announcement Miners and using them to mine blocks
Block mining is typically done at the mining pool's datacenter, however Announcement mining can be done from anywhere.
How to Announcement mine¶
Install the dependencies¶
- On Debian or Ubuntu:
sudo apt install gcc git
- On Fedora or RedHat:
sudo dnf install gcc git
- On Alpine Linux:
sudo apk add gcc git
It is important to install Rust using rustup because packaged Rust is often out of date and compiling will fail. Run the following command as the user who will be mining.
curl --proto '=https' --tlsv1.2 -sSf https://sh.rustup.rs | sh
apt install make
git clone https://github.com/cjdelisle/packetcrypt_rs
cd packetcrypt_rs ~/.cargo/bin/cargo build --release
Begin Announcement Mining¶
To begin mining, you will need the address of your wallet and you will need to choose a pool. You cannot mine into the electrum wallet. You can only mine into the Command Line Wallet or the Mac GUI Wallet. You cannot mine into the electrum wallet, so do not try.
./target/release/packetcrypt ann -p <your_wallet_address> http://your.pool.of.choice
Choosing a Mining Pool¶
There are currently several mining pools:
You should test our daily earnings on each pool to see which one is best. Your mining revenue depends non how much each pool allocates towards announcement miners as well as how much hardware they are using in-house.
Multi-Pool Announcement Mining¶
Announcement mining can be done into a single pool or multiple pools. When you announcement mine into multiple pools, you will be paid by each pool that you submit annoucements to.
If you want to mine into multiple pools, you will need to update your software to the packetcrypt develop branch, as follows:
git clone https://github.com/cjdelisle/packetcrypt_rs --branch develop cd packetcrypt_rs ~/.cargo/bin/cargo build --release ./target/release/packetcrypt ann -p <your_wallet_address> pool_1 pool_2 pool_3 pool_4
pool_1 is the pool running the highest difficulty. If you notice problems, you can test listing the pools in a different order. The number of pools you mine into is at your discretion. If a pool is down or malfunctioning you will notice the pool is not mining at [100%] in your mining feed and you can choose to remove the under-performing or malfunctioning pool.
Block Mining & Running a Pool¶
Because each block miner must use as much bandwidth as all of the announcement miners combined, block mining is typically done at the location of the pool. Even a pool operator who wanted to support external block mining would find that the pool itself would need enough upload bandwidth to match all of the block miners - which would be completely untenable. If you are interested in block mining, contact the pool operator and discuss sending hardware to their location.
Starting your own pool requires setting up a number of services:
- pktd node (one or more) - One pktd instance is required for the Master to function, each of the Block Handlers may optionally use separate pktd nodes.
- Master (one) - This node coordinates all of the others and provides work files and configuration
- Ann Handler (one or more) - These are high performance nodes which accept announcements from the announcement miners in the network, they also provide announcements to the block miners. As you scale up the amount of bandwidth in the pool, you will need to add more Ann handlers.
- Block Miner (one or more) - These nodes download announcements from the announcement handlers and use them in the mining process to mine blocks.
- Block Handlers (one or more) - These nodes receive "block shares" from the block miners and submit blocks if
- Paymaker (1) - This node receives updates from the Ann Handlers and Block Handlers and keeps track of who should be paid. The Paymaker sends configuration to the pktd node which is used by the Master in order to make the pool pay out the announcement and block miners
PacketCrypt Data Flow¶
- █ Orange: Announcements are sent from the Announcement miners to the Ann Handlers and then to the Block miners
- █ Blue: Block shares are sent from block miners to Block Handler(s)
- █ Purple: Winning blocks are submitted by the Block Handler(s) to pktd and the PKT network
- █ Pink: Block Handlers and Ann Handlers inform Paymaker of work done by announcement and block miners
- █ Green: Paymaker configures pktd instance to create blocks which pay the people who have been mining
- █ Brown: Master gets block templates from pktd instance
- Black dotted line: All nodes request configuration and block templates from Master node
More Information and PacketCrypt Pool Code¶
The code and documentation for running a pool is available on the C / nodejs version of the PacketCrypt project, the new Rust version only contains Announcement Miner and Announcement Handlers.
PacketCrypt is designed in such a way that a mining pool can double its effective power by:
- Doubling the total block mining computation effort
- Doubling the total announcement mining computation effort, or
- Dubling the amount of bandwidth between announcement miners and the pool
The way that a pool operator limits the amount of bandwidth flowing into the pool, to prevent overloading of the network, is by setting what is known as the announcement difficulty. The announcement difficulty for a pool specifies how much work must be done on an announcement in order for the announcement to be accepted and paid out by the pool. Announcement difficulty serves to slow down the announcement miners to protect the pool's network.
In general, doubling the announcement difficulty will halve the amount of bandwidth used by the
pool and will also halve the pool's overall mining power, with a limit that setting the announcement
difficulty lower than
2 does not bring any additional value. To explain why it works like this,
we need to examine the PacketCrypt algorithm rules and the in particular how the block mining software
decides which announcements to use when attempting to mine a block.
Announcement Set Selection¶
PacketCrypt algorithm allows block miners to perform less work if they are able to prove that they had a certain number of "high value" announcements in memory at the time of mining, the exact ratio of actual work a block miner must do to the amount of work the PKT blockchain requires is called the power multipler.
For a block miner seeking to optimize their power multiplier, every announcement has a particular level of utility value which is based on the amount of work that was done by the announcement miner (announcement difficulty) and how old the announcement is. We call this the effective difficulty.
The effective difficulty of an announcement starts off as the actual difficulty of the work done to mine it and then decreases by half every block-period until it is less than 1 and the announcement is nolonger usable for mining.
The block mining software selects a subset of announcements which which will give it the best power multiplier based on the PacketCrypt algorithm:
power_multiplier = min(effective_difficulty) * ann_count ** 2
min(effective_difficulty) is the effective difficulty of the "least valuable" announcement
that is being mined with.
Lets assume that announcement miners are providing a steady supply of 1000 announcements per block-period and all announcements have an initial announcement difficulty of 128. The block mining software can choose to mine with 1000 announcements at 128 effective difficulty, or with 2000 announcements at 64 effective difficulty, or with 3000 announcements at 32 effective difficulty and so on.
The best choice is to use the previous three block periods which provides a power multiplier that is 225% higher than that of using just the most recent 1 period worth of announcements. This curve is the same no matter what difficulty we are starting with.
Optimal Difficulty Curve¶
Knowing that the optimal announcement set is all of those announcements mined over the past 3 block periods, we can compute the overall power of a pool as the announcement difficulty is raised.
At announcement difficulty 1, announcements cannot be used for more than 1 block, but if we imagine
that the announcement mining community can produce 1000 announcements per block at difficulty 1 then
we can reason that the power multiplier will be
1000 ** 2 or 1 million.
At difficulty 2 we can expect the announcement miners will produce 500 announcements per block period but since 2 block periods can be used, the power multiplier is the same.
At difficulty 4, the announcement miners will produce 250 announcements per block period and they
will be valid for 3 block periods making the power multiplier
750 ** 2 or 562,500.
From here, the power output of the power multiplier of the optimal announcement set halves for each
doubling of the announcement difficulty, making the optimal difficulty