Freicoin: What Happens If You Put Massive Hashrate On a Small Network! (Multipool Edition!)

Saturday, December 7, 2013; Sunday, December 8, 2013

Last Updated: Wednesday, December 11, 2013

This is a very great example of why "profitability mining" ruins small networks. Freicoin is a prime example, at least, in this case. Freicoin cannot recover as quickly as, say, Zetacoin due to how Freicoin is designed. On Freicoin, beyond demurrage, the difficulty adjusts every nine blocks, and every 144 blocks the hashrate (and as a result, difficulty as well) is calculated. If a massive hashrate hits a small network, the diff soars, and if people bail at that point, the hoppers, um, "profit-seekers" are stuck waiting for those blocks to be found and transactions and generated coins to confirm at such a high difficulty. And so are the rest of the network. It's a wasted effort.

Even worse, multipool actually encourages this method of mining. Unfortunately, some other altcoin networks are going through this rising difficulty. An example: the Luckycoin dev wrote an open letter on multipool's bitcointalk thread requesting removal of that coin. Two main reasons: the rising difficulty and the diminishing market value. Hm...

Also, Briefly profitable alt-coin mining on Amazon through better code - though it does mention mining on hashcows and multipool (and didn't like them)... Love this excerpt:

"I experimented with services like Multipool and Hashcows that try to automatically switch to the most profitable coin, but found them dissatisfactory. Multipool leaves you with a lot of little puddles of silly alt-currencies to exchange. Hashcows hasn't quite had the uptime I want. Mining worldcoin was a nice compromise - it stayed more profitable than Litecoin for most of my experiment.

"When the profit margin shrunk, the game became more stressful - part of the reason I'm out now. With the increase in scrypt coin prices, the load on the mining pools increased, and most began experiencing frequent outages. An outage is annoying when you're paying Amazon by the hour. I had to hack the cpuminer code to add a backup server, etc., etc. Writing the initial CUDA miner code was fun. This wasn't - it started to feel like work, with way less learning-per-unit-time."

This particular epic difficulty rise came mainly from this site: Part of it was coinotron, though.

Okay... Some images of Joe's Pool Chat re: Multipool...

Joe's Pool Chat, Novemer 29, 2013

Only in a logical person's mind in a perfect world, unfortunately.

Joe's Pool Chat, Novemer 29, 2013

So true...

Joe's Pool Chat, December 7, 2013


Joe's Pool Chat, December 7, 2013

The rest of the previous chat message. Mentions the stuck transactions. Also has CoinCrazy's interesting (yet accurate) statement re: multipool.

Joe's Pool Chat, December 7, 2013 (two-part image)

Technically, it was a network hashrate of around 45 TH/s (on a normally 1 to 2 TH/s network), but okay. Most of it was from Multipool, anyway.


Finally, here is the hashrate of Multipool (and even coinotron). Can't leave coinotron out, either...
[Note: is the old domain of]

Multipool Hashrate - The Beginning, November 29, 2013


Multipool Hashrate - Later On, November 29, 2013


Multipool Hashrate - The Final Straw, December 1, 2013

Man, even Coinotron wasn't this bad...

End Result - Highest Difficulty Ever (as of this page), December 4, 2013

Yep. This was the end result of massive hash-and-dash chainhopping. The difficulty actually hit 3.16M. Thanks to the dedicated miners, however, it's getting better now...

Back to CW Cyrix's Homepage!

Valid HTML 4.01 Transitional     Valid CSS!