Comment
Author: Admin | 2025-04-28
« Back to FAQ Through the PoW mining process, you can earn LBC while strengthening the security of the LBRY network.In this guide we cover:Overview of LBRY MiningUnderstanding Mining ProfitabilitySourcing Mining EquipmentColocating your FPGAsRenting HashrateSetting up your FPGAChoosing and Configuring a Mining PoolSetting up an LBRY walletOverview of LBRY MiningMining is a process where computing power is used to verify transactions on the LBRY network and add them to the public ledger (LBRY blockchain). It is also the process of how new LBRY Credits (LBC) are created as a reward for the successful miners (see details below). The process uses the mining software to calculate complex mathematical puzzles in order to secure the transactions. Both CPU and GPU hardware can be used for mining, but the current market is dominated by GPU and ASIC mining. LBRY uses a mix of SHA512, SHA256 and RIPEMD hash functions in its algorithm. To put it in the most simple terms: mining enables secure and fast LBC transactions.LBRY Credits (LBC) are mined over a 20-year Proof of Work period. Block rewards increase every 100 blocks by 1LBC, peak at 500, and decline slowly.Understanding Mining ProfitabilityLBRY mining economics are a result of mining revenue, operating expense & capital expenditure. For revenue, you can go to a public mining calculator to check the current profitability. At the time of writing this guide, 1TH of hashpower generates $14 in revenue a day but this fluctuates day-to-day based on network difficulty and coin price. You should estimate this revenue out for the investment horizon making sure to factor in potential increases in difficulty and any changes in block reward. In regards to operating expenses, this is in largely determined by your cost of electricity. As of 2020 you ideally want to pay less than 7-8 cents USD per kWh.Sourcing Mining EquipmentLBRY mining is dominated by the ASIC/FPGA market. GPU & CPU mining is not viable at this point given the network difficulty.FPGA’s are a bit more specialized hardware that have higher mining efficiencies than GPU’s for LBRY but also are more flexible than hardware like ASICs used to
Add Comment