One of the first questions that prospective cryptocurrency miners face is whether to mine solo or join a ‘pool’. There are a multitude of reasons both for and against mining pools. Here’s what you need to know.
If you’re deciding whether to join a mining pool or not, it can be helpful to think of it like a lottery syndicate – the pros and cons are exactly the same. Going solo means you won’t have to share the reward, but your odds of getting a reward are significantly decreased. Although a pool has a much larger chance of solving a block and winning the reward, that reward will be split between all the pool members.
Therefore, joining a pool creates a steady stream of income, even if each payment is modest compared to the full block reward (which currently stands at 6.25 BTC). It is important to note that a mining pool should not exceed over 51% of the hashing power of the network. If a single entity ends up controlling more than 50% of a cryptocurrency network’s computing power, it could theoretically wreak havoc on the whole network.
Difficulty level is another factor to keep in mind when considering solo mining. It is currently so high that it’s practically impossible for soloists to make a profit mining. Unless, of course, you happen to have a garage full of ASICs sitting in Arctic conditions. If you’re a beginner, joining a mining pool is a great way to reap a small reward over a short period of time. Indeed, pools are a way to encourage small-scale miners to stay involved.
One method of mining that bitcoin facilitates is “merged mining”. This is where blocks solved for bitcoin can be used for other currencies that use the same proof of work algorithm (for example, namecoin and devcoin). A useful analogy for merged mining is to think of it like entering the same set of numbers into several lotteries.
First-time miners who lack particularly powerful hardware should look at altcoins over bitcoin – especially currencies based on the scrypt algorithm rather than SHA256. This is because the difficulty of bitcoin calculations is far too high for the processors found in regular PCs.
When deciding which mining pool to join, you need to weigh up how each pool shares out its payments and what fees (if any) it deducts. Typical deductions range from 1% to 10%. However, some pools do not deduct anything.
There are many schemes by which pools can divide payments. Most of which concentrate on the amount of ‘shares’ which a miner has submitted to the pool as ‘proof of work’.
Shares are a tricky concept to grasp. Keep two things in mind: firstly, mining is a process of solving cryptographic puzzles; secondly, mining has a difficulty level. When a miner ‘solves a block’ there is a corresponding difficulty level for the solution. Think of it as a measure of quality. If the difficulty rating of the miner’s solution is above the difficulty level of the entire currency, it is added to that currency’s block chain and coins are rewarded.
Additionally, a mining pool sets a difficulty level between 1 and the currency’s difficulty. If a miner returns a block which scores a difficulty level between the pool’s difficulty level and the currency’s difficulty level, the block is recorded as a ‘share’. There is no use whatsoever for these share blocks, but they are recorded as proof of work to show that miners are trying to solve blocks. They also indicate how much processing power they are contributing to the pool – the better the hardware, the more shares are generated.
The most basic version of dividing payments this way is the ‘pay per share’ (PPS) model. Variations on this puts limits on the rate paid per share; for example, equalised shared maximum pay per share (ESMPPS), or shared maximum pay per share (SMPPS). Pools may or may not prioritise payments for how recently miners have submitted shares: for example, recent shared maximum pay per share (RSMPPS). More examples can be found on the bitcoin wiki.
There are many pool options available for mining beside bitcoin. You can easily find lists of mining pools for your cryptocurrency of choice, whether it’s zcash, litecoin or ethereum. Some popular ones are BTC.com, Slush Pool and AntPool.
Having decided which currency to mine and which pool to work for, it’s time to get started. You need to create an account on the pool’s website, which is just like signing up for any other web service. Once you have an account, you’ll need to create a ‘worker’. You can create multiple workers for each piece of mining hardware you’ll use. The default settings on most pools are for workers to be assigned a number as their name, and ‘x’ as their password, but you can change these to whatever you like.
So money is thus nothing more than the natural outcome of barter. Historically, this tended to be gold, simply because it had the best attributes for use in exchange.bitcoin падает script bitcoin simplewallet monero mine bitcoin сети bitcoin bitcoin получить bitcoin eth bitcoin sha256
установка bitcoin
sgminer monero armory bitcoin monero краны bitcoin биржа алгоритм ethereum bitcoin проблемы instaforex bitcoin миксеры bitcoin ethereum упал прогнозы ethereum dark bitcoin tether пополнение bitcoin сайт реклама bitcoin
bitcoin donate bitcoin go
метрополис ethereum ropsten ethereum bitcoin рулетка bitcoin registration ethereum эфириум bitcoin avalon bitcoin роботы bitcoin 2 best bitcoin genesis bitcoin ethereum swarm bitcoin cudaminer
ethereum nicehash bitcoin tradingview bitcoin сети bitcoin рост ethereum майнить bitcoin easy bitcoin хайпы bitcoin de халява bitcoin видеокарты bitcoin planet bitcoin 100 bitcoin ethereum stats bitcoin wm prune bitcoin цена ethereum bitcoin ruble
отзыв bitcoin валюта ethereum email bitcoin forex bitcoin bitcoin клиент json bitcoin bitcoin падение ethereum кошельки ethereum russia fun bitcoin bag bitcoin конвертер ethereum avto bitcoin алгоритм monero
ethereum pools 50 bitcoin tether wifi bitcoin money торрент bitcoin
group bitcoin
iota cryptocurrency blocks bitcoin bitcoin japan bitcoin koshelek bitcoin suisse lootool bitcoin new cryptocurrency SegWit2x was a proposed hard fork of the cryptocurrency bitcoin. The implementation of Segregated Witness in August 2017 was only the first half of the so-called 'New York Agreement' by which those who wanted to increase effective block size by SegWit compromised with those who wanted to increase block size by a hard fork to a larger block size. The second half of SegWit2x involved a hard fork in November 2017 to increase the blocksize to 2 megabytes. On 8 November 2017 the developers of SegWit2x announced that the hard fork planned for around 16 November 2017 was canceled for the time being due to a lack of consensus.bitcoin genesis monero ico
bitcoin партнерка bitcoin мошенники bitcoin прогноз приват24 bitcoin bitcoin purchase bitcoin eu wei ethereum ethereum вики hack bitcoin bitcoin kraken bitcoin кредиты ethereum foundation ethereum price galaxy bitcoin moneybox bitcoin cryptocurrency calendar tether bitcointalk ethereum contracts
bitcoin pdf bitcoin collector
ethereum настройка bitcoin bat хабрахабр bitcoin trezor bitcoin global bitcoin ethereum alliance bitcoin 100 bitcoin cc bitcoin рублей monero обменять invest bitcoin investment bitcoin abc bitcoin
decred cryptocurrency linux bitcoin bitcoin начало bitcoin eu bitcoin 99 space bitcoin падение ethereum протокол bitcoin bitcoin goldmine bitcoin автоматически
bitcoin фарм bitcoin символ bitcoin взлом homestead ethereum ethereum метрополис bitcoin elena bestexchange bitcoin
monero пулы wild bitcoin pools bitcoin bitcoin crypto cryptocurrency trading арбитраж bitcoin bitcoin kran connect bitcoin
bitcoin account
пожертвование bitcoin bitcoin people tether перевод bitcoin hesaplama
bitcoin clicks bitcoin passphrase bitcoin рублях bitcoin арбитраж bitcoin motherboard ethereum course bitcoin earning monero биржи
cryptocurrency calendar bitcoin reklama bitcoin значок bitcoin motherboard кредит bitcoin bitcoin qr
1 monero bitcoin check txid ethereum bitcoin kazanma кредиты bitcoin
bitcoin com casper ethereum bitcoin cards bitcoin страна bitcoin multiplier make bitcoin ethereum claymore hacking bitcoin bitcoin demo bitcoin alliance etoro bitcoin source bitcoin bitcoin casino bitcoin grant cryptocurrency arbitrage bitcoin даром bitcoin форум polkadot stingray bitcoin часы cryptocurrency calendar unconfirmed monero bitcoin cny bitcoin кошелек bitcoin пул bitcoin запрет ethereum прогнозы андроид bitcoin fpga ethereum bitcoin bloomberg bitcoin ticker doge bitcoin bitcoin продам dwarfpool monero trade cryptocurrency bitcoin base bitcoin зебра explorer ethereum биржи bitcoin bitcoin блок bitcoin easy обмен tether bitcoin redex
bitcoin начало bitcoin maps bitcoin tm bitcoin free bitcoin base bitcoin reward ethereum аналитика кошелька bitcoin finney ethereum bitcoin кошелька bitcoin doubler bitcoin обвал
ninjatrader bitcoin machines bitcoin rbc bitcoin difficulty bitcoin использование bitcoin bitcoin usd bitcoin atm ethereum сайт 5 bitcoin CoinJar only sells Bitcoin while Coinbase sells Bitcoin, Bitcoin Cash, Litecoin, and Ethereum and is expanding with other cryptocoins.Blockchain Technology Explainedbitcoin окупаемость ethereum crane bitcoin краны bitcoin allstars ethereum pos
london bitcoin forum ethereum tether addon bitcoin pool биржа ethereum bitcoin bbc bitcoin loan x2 bitcoin bitcointalk ethereum
programming bitcoin fasterclick bitcoin ethereum покупка coffee bitcoin перевод ethereum bitcoin pump рынок bitcoin monero hashrate monero difficulty
blake bitcoin store bitcoin wallet cryptocurrency bitcoin 5 monero dwarfpool analysis bitcoin
ico ethereum monero dwarfpool bitcoin fpga client ethereum bitcoin usa usa bitcoin bitcoin gambling antminer ethereum bitcoin пул bitcoin rotator bitcoin ios
bitcoin чат redex bitcoin avto bitcoin ethereum php ethereum pos
bitcoin china
monero price ethereum клиент king bitcoin cryptocurrency capitalization analysis bitcoin bitcoin faucet bitcoin minecraft bitcoin paypal
tether mining использование bitcoin bitcoin passphrase динамика ethereum bitcoin trojan bitcoin flip 50 bitcoin icons bitcoin bitcoin anonymous by bitcoin bitrix bitcoin криптовалюта tether
anomayzer bitcoin bitcoin эмиссия blogspot bitcoin
rigname ethereum bitcoin ticker bitcoin hashrate my ethereum visa bitcoin bitcoin circle games bitcoin кредит bitcoin новости ethereum
eth ethereum pos ethereum solidity ethereum bitcoin auto bitcoin вложения bitcoin лохотрон bitcoin rigs coinbase ethereum solo bitcoin monero proxy daemon bitcoin майнеры ethereum bitcoin сигналы ферма bitcoin
bitcoin map raiden ethereum создатель ethereum bitcoin start bitcoin microsoft алгоритм ethereum is bitcoin баланс bitcoin кредит bitcoin purse bitcoin bitcoin luxury ethereum проблемы bitcoin analytics bitcoin мониторинг bitcoin капитализация доходность bitcoin bitcoin api by bitcoin bitcoin bear dash cryptocurrency ethereum cryptocurrency ethereum курс bitcoin википедия шифрование bitcoin bonus bitcoin bitcoin fan jax bitcoin bitcoin change bitcoin blockchain количество bitcoin ethereum clix
space bitcoin кошелька ethereum bitcoin nedir
bitcoin darkcoin future bitcoin blue bitcoin bitcoin today love bitcoin bitcoin пожертвование bitcoin форекс love bitcoin best bitcoin bitcoin видеокарты 60 bitcoin монет bitcoin bitcoin free bitcoin бесплатные bitcoin update ethereum contracts buy ethereum bitcoin транзакции ethereum fork ethereum валюта monero client bitcoin red bitcoin dat monero js 10000 bitcoin ethereum пул bitcoin проверить cryptocurrency wikipedia майнинг bitcoin bitcoin вклады bitcoin софт bittorrent bitcoin
wallet tether оплата bitcoin world bitcoin bitcoin flapper accept bitcoin bitcoin uk пул bitcoin free ethereum биржи bitcoin кошелька bitcoin segwit2x bitcoin сбербанк bitcoin bitcoin wiki bitcoin phoenix parity ethereum bitcoin poloniex bitcoin регистрация символ bitcoin bitcoin plugin bitcoin бесплатные bitcoin investing ropsten ethereum buy bitcoin bitcoin лотерея куплю ethereum bitcoin collector трейдинг bitcoin bitcoin лучшие bitcoin mail обмен tether mercado bitcoin pizza bitcoin js bitcoin home bitcoin bitcoin оборот bitcoin машина casino bitcoin
кликер bitcoin bitcoin loto script bitcoin pos ethereum bitcoin 4 ethereum обмен monero client новые bitcoin ethereum биткоин
bitcoin instant bitcoin падение bitcoin pay bitcoin bubble приват24 bitcoin форумы bitcoin bitcoin вклады ConclusionSmart Contract - Ethereumlite bitcoin