How does Solo Mining work?

Solo mining involves mining Bitcoin independently, i.e., without joining a mining pool. This means that you only use your own hardware and, if you happen to find a new block, you receive the entire block reward yourself (currently 3.125 BTC plus transaction fees). In contrast, with pool mining, the reward is divided proportionally among all participants in the pool.

Solo mining is therefore similar to a lottery: either you are fortunate and receive the full reward, or you go away empty-handed for a long time. However, due to the enormous global computing power, the probability of finding a block with ordinary home hardware is extremely low.

• Advantage: Full block reward for the finder, no sharing.
• Disadvantage: Very high variance; it can take months or years to be rewarded (if at all).

So how does solo mining work?

Technically speaking, solo miners generate complete Bitcoin blocks independently. They operate a Bitcoin full node and connect their mining hardware to it using suitable software. The node provides a block template containing the latest transactions and, most importantly, a coinbase transaction with the miner's own Bitcoin address as the recipient.

The miner then attempts to find a valid hash by constantly varying the so-called nonce value in the block header. As soon as the hash is smaller than the current network difficulty target, the block is considered found. In this case, the node sends the block to the Bitcoin network and the reward (3.125 BTC + fees) is paid out to the specified address. If this fails, the process simply continues.

However, due to the enormous global hashrate, the probability of success in solo mining with private hardware is minimal, which is why the returns are extremely irregular.

In pool mining, on the other hand, many miners work together to solve blocks. Everyone receives small, continuous returns for submitted “shares,” but also shares the rewards with the other pool participants.

Practical implementation

There are two common ways to set up solo mining technically:

1. Solo mining pools: Special pools such as Braiins Solo and CKPool enable solo mining without your own node. As a miner configuration, you enter the pool address (Stratum URL) and your own Bitcoin address as the username. This method is much easier, as there is no need to synchronize or maintain your own node. If successful, you still receive the full block reward, minus a small pool fee.
2. Operating your own node: If you want maximum independence, you can work completely without a pool. In this case, you need to run a Bitcoin full node with a synchronized blockchain and connect it to the mining hardware. In the mining software, you enter the address (IP/host) and port of your own node.

The block templates are then created locally, and the reward goes automatically to your own wallet. However, this setup requires technical know-how, permanent storage space for the blockchain, and a stable internet connection.

The Ofen 2: Heating and Solo Mining Device

The Ofen 2 is not classic mining hardware, but rather a 1 kW electric heater with integrated ASIC chips. The key difference to conventional fan heaters: The electricity used is not only converted 100% into heat, but also into Bitcoin hashrate.

With up to 40 TH/s, whisper-quiet operation (~35 dB), and complete app control, the Oven 2 is the first solo mining device that can realistically be used in everyday life—without consuming any more electricity than a normal electric heater.

Solo mining thus goes from being a pure hobby experiment to a passive additional opportunity while the heating is on anyway.

Here is a comparison with other solo mining devices: