Home Mining
Understanding Proof-of-Work that secures the Bitcoin network
Bitcoin mining is the process of using energy to solve math puzzles and create new blocks. It's not just about profitability — it's about securing the Bitcoin network with physical energy. We explore small-scale home mining and what it means.
Why Does This Matter?
- 1
Mining rewards are freshly created BTC with zero exchange KYC history. It's the only legal way to acquire non-KYC Bitcoin.
- 2
Mining rigs generate significant heat. Use them for winter heating or combine with self-generated renewable energy to dramatically cut losses.
- 3
The ability of home miners to exit malicious pools is itself a check on pool operators. Connecting via DATUM directly contributes to mining decentralization.
Key Concepts
The computational work of finding a hash below a target value by changing a nonce — like drawing a card numbered 10 or below from 0-9999. Forging a past block requires re-mining all subsequent blocks alone, which is practically impossible.
Measures how many hash computations can be performed per second. Higher network hashrate = higher attack cost = stronger security. Units: TH/s (tera), EH/s (exa), ZH/s (zetta).
PPS: fixed reward per share submitted (stable, higher pool fee). FPPS/PPS+: PPS including transaction fees (most stable). PPLNS: paid only when block found, based on recent N shares (unstable but lower fee). TIDES: improved PPLNS used by Ocean Pool.
A method where you join a mining pool but your own full node retains block construction authority. Your node builds the block template → Ocean Pool only modifies the coinbase reward address → returns to your node → your miner mines it. Currently only Ocean Pool supports DATUM.
Chips designed exclusively for Bitcoin mining — thousands of times more efficient than CPUs/GPUs but useless for other tasks. Beginner: Bitaxe series (5-30W compact), Avalon Nano 3. Professional: Antminer S21 series, Whatsminer M60 series.
Communication protocol between mining rigs and pool servers. TCP connection for receiving block templates and submitting shares. v1 has no encryption and no block construction control. v2 (including DATUM) lets miners independently select transactions.
Calculating Mining Profitability
Revenue = (your hashrate ÷ total hashrate) × block reward × 6 × 24 × 30 × BTC price
Cost = (power draw (W) × electricity rate (KRW/kWh) ÷ 1000) × 24 × 30
Real example: network 1 ZH/s, your rig 1 TH/s, 120 KRW/kWh, BTC 150M KRW → monthly expected ~2,025 KRW, electricity ~1,555 KRW (18W) → net profit ~470 KRW/month
At those numbers, a 200K KRW device takes 30+ years to break even → not suitable for pure profit
Evaluate also from non-KYC BTC acquisition, heating substitute, and network contribution perspectives
Pool Limitations and Mining Sovereignty
Joining a mining pool centralizes block construction authority with the pool operator — like the weakness of indirect democracy
If the operator includes malicious transactions or censors specific ones, it's hard for miners to notice
DATUM: participate in a pool while your own full node retains block construction authority. Currently only Ocean Pool supports this
Solo mining: fully independent via ckpool.org. Win an entire block reward (3.125 BTC) when you find one. Extremely rare, but fun as a lottery
Braiins Pool: the only pool that can pay mining rewards via Lightning
Beginner Hardware and Getting Started
Bitaxe Gamma 601: 5V 30W+ power supply (5V 6A adapter recommended), 2.4GHz WiFi. Open-source. Ideal for education and experimentation
Avalon Nano 3: compact USB-style device. Easy start with USB-C power
Recommended beginner pools: Ocean Pool (TIDES rewards + DATUM support) or ckpool (solo mining experience)
Note noise and heat: consider soundproofing cases or water cooling for home use. Use as winter heating to minimize electricity cost losses
Always withdraw mining rewards to your own hardware wallet — never leave them in the mining pool long-term
Learning Checklist
Understand Proof-of-Work and the difficulty adjustment mechanism
Calculated profitability directly using your own electricity rate and BTC price
Tried mining with a Bitaxe or Avalon Nano
Connected to a mining pool and verified hashrate on the dashboard
Understand DATUM's principle and how to connect to Ocean Pool
Withdrew mining rewards to your own hardware wallet