Magnolia Whitepaper
This is an earlier, shorter version of Magnolia's whitepaper.
What is Magnolia?
Magnolia is a free, open source and mineable blockchain that aims to make the most of the miners' hashrate. To do so, each miner decides the amount he/she wants to mine per block.
How does it work?
Each miner can choose the amount he wants to receive in return for mining the block. The difficulty of the block is adapted to the amount of NOLIA the miner decides to mine. Each NOLIA reward adds 60000 to the difficulty, following a fairly obvious linear progression:
| Hashrate | NOLIA mined* | Difficulty |
|---|---|---|
| 100 h/s | 1 NOLIA/block | 60000 |
| 200 h/s | 2 NOLIA/block | 120000 |
| 500 h/s | 3 NOLIA/block | 300000 |
| 1000 h/s | 10 NOLIA/block | 600000 |
| *Recommended NOLIA mined adapted to hashrate |
The mining software will test during the first minute the hashrate, and will decide how many NOLIA to mine per block to take full advantage of the power. If for example the miner's hashrate amounts to 870 h/s:
| Hashrate | NOLIA mined* | Difficulty |
|---|---|---|
| 870 h/s | 9 NOLIA/block | 54000 |
| *Recommended NOLIA mined adapted to hashrate |
Comparison with classic mining
This way of mining allows NOLIA to be created based on the mining power of the network, so the price should be much more stable than classic cryptocurrencies.
In this example table we can see how the Magnolia network would evolve compared to Bitcoin in its early days:
| Hashrate | Generated NOLIA | Generated BTC |
|---|---|---|
| 100 h/s | 1 NOLIA / 600 seconds | 50 BTC / 600 seconds |
| 10,000 h/s | 100 NOLIA / 600 seconds | 50 BTC / 600 seconds |
| 20,000 h/s | 200 NOLIA / 600 seconds | 50 BTC / 600 seconds |
| 100,000 h/s | 1,000 NOLIA / 600 seconds | 50 BTC / 600 seconds |
| 1,000,000 h/s | 10,000 NOLIA / 600 seconds | 50 BTC / 600 seconds |
| Miners (1Kh/s per miner) | NOLIA Blocks | BTC Blocks |
|---|---|---|
| 1 miner | 1 block / 600 seconds | 1 block / 600 seconds |
| 10 miners | 1 block / 60 seconds | 1 block / 600 seconds |
| 20 miners | 1 block / 30 seconds | 1 block / 600 seconds |
| 100 miners | 1 block / 6 seconds | 1 block / 600 seconds |
| 600 miners | 1 block / 1 second | 1 block / 600 seconds |
Is there a maximum number of NOLIA?
No. As in the Ethereum network, there is no maximum number of NOLIA that can be generated.
What happens with fees?
All NOLIA used to pay fees are burned instead of being collected by miners as in other blockchains.
Are there halvings?
As in classic mining we have included halvings, but instead of reducing the number of NOLIA generated, what we do is to increase the difficulty, while reducing the minimum reward per block. the minimum reward per block. For halvings, instead of selecting a block number, a specific timestamp will be selected:
| Hashrate | Diff per NOLIA | Min. coins per Block |
|---|---|---|
| 2022 | 60000 | 10 NOLIA |
| 2023 | 120000 | 5 NOLIA |
| 2024 | 240000 | 3 NOLIA |
| 2025 | 480000 | 2 NOLIA |
| 2026 | 960000 | 1 NOLIA |
Are there mining pools?
Since each miner can select the number of NOLIA he wants to generate, thus adapting the mining difficulty to his power, the idea of mining pools does not make much sense in principle. Perhaps in the future, when the difficulty has increased sufficiently, a software for pool mining will be interesting, which we will implement if necessary.