The following document is still under construction and is subject to changes
Alike most cryptocurrencies, Beam relies on miners to add transactions to the blockchain. While all nodes in the Beam network confirm the validity of transactions, Beam counts on miners to take on the massive heavy lifting to guard the network.
Beam is a Mimblewimble implementation. We use classic Proof-of-Work (PoW) consensus.
We welcome everyone to join our mining community to support the network and earn Beam coins.
To secure the network, Beam uses the uses a modified version of Equihash (150,5) proof-of-work mining algorithm. Miners compete against each other using their computing power produce a new block on the chain. The first miner that gets to complete the precise computation for each block is granted with a network standard block reward and any fees for transactions added to that block.
At Mainnet launch, we will use the following Equihash parameters: n=150, k=5. In addition, we will introduce a small change to the datapath to further reduce the chance of zero-day ASICs.
Testnet 3 is still using n=144, k=5
The minimal memory requirement for the GPU will be 4 GB. The most up-to-date list of supported GPUs will be available here.
Block Size and Time¶
A Beam block will be generated approximately every minute and contain about 1000 transactions. Block size will be roughly 1MB.
Mining difficulty is a measure of how many attempts on average it is required to find the proof-of-work solution required to mine a block and receive the mining reward. One can define the Difficulty as the inverse probability of a random solution being the correct one. Thus, a difficulty of 100 means that one in 100 tries should produce a valid block in average.
In Proof of Work blockchains, the difficulty is a dynamic parameter, periodically retargeted to reflect the fluctuations in the total computational power of all the miners. Accounting for changes in mining competition, as well as improvements in mining technology.
The goal of updating the difficulty is to keep the average block time at a certain value. In Beam, the target block time is 60 seconds, which underpins a constant currency issuance and the transaction settlement time of the network.
Here’s an example. Let’s assume we have 100 miners in our network. They are trying different random solutions and find one roughly every minute. Now 100 more miners join, the hashrate of the network doubles, and it will take just 30 seconds to find the solution in average. And if 200 and more join, the time will halve into 15 seconds, and so on.
To mitigate that, Beam nodes adjust [shall we mention that they reach consensus here?]the difficulty, increasing the difficulty of the proof of work algorithm as more miners join, and lowering it if the number of miners decreases.
In Beam, the difficulty is reassessed with every block, by every client independently The algorithm looks at the average time and the average difficulty the last 1440 blocks. f the time required to mine the last 1440 blocks is higher or lower than 24 hours, the difficulty is retargeted accordingly.
The detailed algorithm is outlined below:
- Look at the last 7 blocks. Identify the block that has the median block time. This is the Window End block.
- Look at blocks from 127 to 120 before the current block (7 blocks altogether). Identify the block that has the median block time out of those. This will be the Window Start block.
- Sum all the difficulties of the blocks from Window Start to Window End. This is Delta Work.
- Calculate the time difference between Window Start and Window End blocks. This is Delta Time.
- Calculate the difficulty for next block as: NewDifficulty = (Delta Work / Delta Time) * 60seconds.
- The Delta Time is bounded by 1 hour and 4 hours. I.e. if the difference is less than 1 hour, 1 hours is still used as Delta Time, same for differences larger than 4 hours. This is done to prevent extreme changes in difficulty.
The algorithm above ensures that as the total solution power of the network fluctuates, the difficulty is gradually adjusted and thus the target block time is ensured.
During the first year of Beam existence, miner reward will be 80 coins per block. In years 2-5 the reward will be 40 coins per block. In year 6 the reward will be to 25 coins, and then halving will occur every 4 years until year 129. After year 133, Beam emission will stop.
Mining reward (coinbase UTXO) has 4 hours maturity, meaning that it will be available for spending 4 hours after it was mined.
In the first five years of existence, additional coins will be issued to Beam Treasury with each newly mined Beam block.
In the first year, the Treasury will receive additional 20 Beams per block, and in the years 2-5 the Treasury will receive 10 coins per block.
The Treasury will be used to repay Beam investors, Incentivize the Core Team and to support the Beam Foundation (largest single beneficiary of the Treasury).
The distribution of the Treasury Coins is performed on a quarterly basis in the following proportion:
- Investors: 40%
- Core Team: 40%
- Beam Foundation: 20% (Biggest single beneficiary)
To ensure better decentralization, Beam plans to stay ASIC resistance in the first 12-18 months. To achieve this, we plan to perform one or two hard forks – first after approximately 6 months of existence and another one after approximately 12 months. Each hard fork will change the mining algorithm. The exact modifications will be revealed several weeks before the actual hard fork.
The following section describes how to set up mining for Beam Network
Mining using external miner¶
This is a step by step guide on how to setup mining using stand alone Beam Node with Stratum Server and a mining client.
Before you start with the steps, please review the sample Mining Architecture
Important points to understand
- Beam node should connect to some other node on the network via –peer parmeter (for example –peer=22.214.171.124:8100 for testnet 4)
- Beam node should run Stratum server by setting up –stratum_port parameter (for example –stratum_port=10002)
- Beam node should know both mining key and owner key in order to attribute mining rewards to a specific wallet. Mining and owner keys are exported from the wallet as explained in the steps 5 and 6 of the step by step guide. They are passed to the node via –miner_key and –owner_key parameters respectively
Miner keys and Owner key should be kept secret at all times
Several Mining clients can connect to the same node. Mining clients should run on machines with GPUs.
The connection between the Mining Client and the Beam Node is encrypted using TLS. In order for TLS to work you need to provide a certificate file and secret keys for it, as described in Step 9.
Mining Client and Beam Node should use the same API key. Details on how to setup an API key are described in Step 9.
Your wallet will see mining rewards only if the following conditions hold:
- It was created using the same seed phrase as the wallet which created the miner and owner keys
- It is connected to the node that knows the owner key.
In case of Desktop wallet, you need to run local node from within the wallet (which automatically knows the owner key) or connect to are remote node that know the owner key. If you just connect to random node you will NOT see your mining rewards
Beam node should
Now let’s start with the steps:
- Download CLI Wallet archive for your platform from Beam Website
- Extract the CLI Wallet to any folder on your machine (we will call it Wallet Folder)
- Open a Terminal window (on Mac / Linux) or Command Prompt (on Windows) and change directory to Walelt Folder
The following steps involve seed phrase and should be done in secure environment to avoid someone stealing your seed phrase
- If you want to create a new wallet (with new seed phrase) run the following command:
If you have already created a wallet run the following command:
./beam-wallet restore --seed_phrase=<semicolon separated list of 12 seed phrase words>;
Remember your wallet password, you will need it in step 11 to run Stratum server
- Export miner key by running the following command
Mining key should be kept secret. Never send it or show it to anyone.
./beam-wallet export_miner_key --subkey=1
If you want to run several different mining nodes with different keys you can run the command again with different subkeys.
For second node, run: ./beam-wallet export_miner_key –subkey=2
For third node, run: ./beam-wallet export_miner_key –subkey=3
and so on
Save the exported mining key in some text file, you will need it later
- Export owner key by running the following command:
Owner key should be kept secret. Never send it or show it to anyone.
Save the exported owner key in some text file, you will need it later
- Download Beam Node archive for your platform from Beam Website
- Extract Beam Node to any folder on your machine (from now on we will call it Node Folder)
- Create certificate and API key for Stratum server
If you are only testing you can download the sample certificate and key files from here:
API Keys file currently contains one key: aaaa1234. You will need to provide it later in the
--key=aaaa1234 parameter for miner client.
You should copy these files to the Beam Node folder (same folder as beam-node binary)
You can now jump to step 10
For production setup please read the following section carefully
Beam node implements Stratum protocol for connecting external miner clients. Clients open a TCP connection to the node though which they receive jobs to mine blocks using Equihash mining protocol.
Stratum server connections are protected using Transport Layer Security (TLS) protocol and require TLS certificates in order to work properly. You can either buy the certificates or create self signed certificates on your local machine. Instructions on how to do this are outside the scope of this guide. You should receive two files: one for certificate and one with the certificate secret key. For testing purposes you can always use sample files provided in the note above.
In addition you should create a file ‘stratum.api.keys’ which will contain one or more lines. Each line represents one API key - random strings of 8 characters or more. You should generate these keys yourself and put each one in new line. These keys are then used by the miner client via –key flag.
As a result you will have three files:
|stratum.key||Private key for TLS certificate|
Text file with list of allowed API keys
Each key should have 8 symbols or more. example: abcd1234
All three files should be copied into the same folder. The path to this folder will be provided via –stratum_secrets_folder parameter. By default the path points to the same folder as the node binary.
At this point Node Folder should look something like this:
- Open a Terminal window (on Mac / Linux) or Command Prompt (on Windows) and change directory to Node Folder
- Run Beam Node with stratum server using the following command:
./beam-node --port=10001 --peer=126.96.36.199:8100 --stratum_port=10002 --stratum_secrets_path=. --miner_key=<mining key you got in step 5 > --owner_key=<owner key you got in step 6> --pass=<your wallet password (not seed phrase) >
Parameters in the example above are good for testing. You can always change them if necessary. You can also change the beam-node.cfg file and set all these parameters there instead of the command line.
The following table describes all parameters in more details
- Downloads miner client archive for your GPU and platform from Beam Website
Beam provides two mining clients for Equihash 150,5 with data path change: one for OpenCL and one for CUDA
Only OpenCL mining client is currently available in Testnet 4
Mining clients are only supported on Linux and Windows platforms
- Extract miner client to a folder on your mining machine (from now on we wil call it Miner Folder)
- Open a Terminal window (on Mac / Linux) or Command Prompt (on Windows) and change directory to Miner Folder
- Run the following command (example on Windows):
beamMiner.exe --server 127.0.0.1:10002 --key aaaa1234
If your node runs on different machine than the miner, change IP address above to the IP of the node machine
If you have set a different API key than ‘aaa1234’ from the example set your key in the –key parameter.
Detailed explanation about mining client parameters is provided in the table below:
|Parameter||Description & Example|
IP and port of the Stratum server to connect to
API key you have set in your Stratum server (In stratum.api.keys file)
Only specify this flag to use specific GPU
By default, miner will use all available GPUs
Your mining should start now.
To see your mining rewards use one of two options below:
- Run Beam Desktop Wallet with the same seed phrase using built in node.
- Run either CLI or Desktop wallet and connect it to Your node which was started with your owner key parameter (via –owner_key flag). It could be the same node as the miner, or another node - as long as it has your owner key
You will NOT be able to see your mining rewards if you connect to a node which does not know your owner key.
Here are some performance stats reported by our community
|GPU||Supported||Reported Sol/s rate|
|AMD Rx Vega 56||Yes||~13|
|nVidia GTX 1066||Yes||~5.25|
|nVidia GTX 1050Ti||Yes||~2.2-4.8|
|nVidia GTX 1060 6Gb||Yes||~5|
|nVidia GTX 1070||Yes||~7|
|nVidia GTX 1080||Yes||~8-9|
|nVidia GTX 1080Ti||Yes||~10-11|
|nVidia GTX 2080||Yes||~10-11|
CUDA Mining client is still in development.