Mining pool
In the context of cryptocurrency mining, a mining pool is the pooling of resources by miners, who share their processing power over a network, to split the reward equally, according to the amount of work they contributed to the probability of finding a block. A "share" is awarded to members of the mining pool who present a valid partial proof-of-work. Mining in pools began when the difficulty for mining increased to the point where it could take centuries for slower miners to generate a block. The solution to this problem was for miners to pool their resources so they could generate blocks more quickly and therefore receive a portion of the block reward on a consistent basis, rather than randomly once every few years.
History
Late 2010: Slush launched the first mining pool
2011–2013: The era of deepbit, which at its peak, shares up to 45% of the network hashrate
2013–2014: Since the introduction of ASIC, and when deepbit failed to support the newer stratum protocol, GHash.IO replaced deepbit and became the largest
2014–2015: Rise of China. F2Pool which launched in May 2013, replaced GHash.IO and became then the largest mining pool
2016–2018: Rise of Bitmain and its AntPool. Bitmain also controls a few other smaller pools like BTC.com and ViaBTC
2019–2020: The launch of Poolin. Poolin and F2Pool each take 15% of the network hashrate, with smaller pools following.
2020: Binance launches a mining pool following Huobi and OKex. Luxor launches a US-based mining pool.
Mining pool share
Share is the principal concept of the mining pool operation. Share is a potential block solution. So it may be a block solution, but it is not necessarily so. For example, suppose a block solution is a number that ends with 10 zeros and, a share may be a number with 5 zeros at the end. Sooner or later one of the shares will have not only 5, but 10 zeros at the end, and this will be the block solution.
Mining pools need shares to estimate the miner's contribution to the work performed by the pool to find a block. There are numerous miner reward systems: PPS, PROP, PPLNS, PPLNT, and many more.
Mining pool methods
Mining pools may contain hundreds or thousands of miners using specialized protocols. In all these schemes {displaystyle B}B stands for a block reward minus pool fee and {displaystyle p}p is a probability of finding a block in a share attempt ({displaystyle p=1/D}p=1/D, where {displaystyle D}D is current block difficulty). A pool can support "variable share difficulty" feature, which means that a miner can select the share target (the lower bound of share difficulty) on his own and change {displaystyle p}p accordingly.
Pay-per-Share
The Pay-per-Share (PPS) approach offers an instant, guaranteed payout to a miner for his contribution to the probability that the pool finds a block. Miners are paid out from the pool's existing balance and can withdraw their payout immediately. This model allows for the least possible variance in payment for miners while also transferring much of the risk to the pool's operator.
Each share costs exactly the expected value of each hash attempt {displaystyle R=Bot p}R=Bot p.
Proportional
Miners earn shares until the pool finds a block (the end of the mining round). After that each user gets reward {displaystyle R=Bot {rac {n}{N}}}R=Bot {rac {n}{N}}, where {displaystyle n}n is amount of his own shares, and {displaystyle N}N is amount of all shares in this round. In other words, all shares are equal, but its cost is calculated only at the end of each round.
Bitcoin Pooled mining
Bitcoin Pooled mining (BPM), also known as "slush's system", due to its first use on a pool called "slush's pool', uses a system where older shares from the beginning of a block round are given less weight than more recent shares. A new round starts the moment the pool solves a block and miners are rewarded Proportional to the shares submitted. This reduces the ability to cheat the mining pool system by switching pools during a round, to maximize profit.
Pay-per-last-N-shares
Pay-per-last-N-shares (PPLNS) method is similar to Proportional, but the miner's reward is calculated on a basis of N last shares, instead of all shares for the last round. It means that when a block is found, the reward of each miner is calculated based on the miner contribution to the last N pool shares. Therefore, if the round was short enough all miners get more profit and vice versa.
Solo Mining Pool
Solo pools operate the same way as usual pools, with the only difference being that block reward is not distributed among all miners. The entire reward in a solo pool goes to the miner who finds the block.
Peer-to-Peer Mining Pool
Peer-to-peer mining pool (P2Pool) decentralizes the responsibilities of a pool server, removing the chance of the pool operator cheating or the server being a single point of failure. Miners work on a side blockchain called a share chain, mining at a lower difficulty at a rate of one share block per 30 seconds. Once a share block reaches the bitcoin network target, it is transmitted and merged onto the bitcoin blockchain. Miners are rewarded when this occurs proportional to the shares submitted prior to the target block. A P2Pool requires the miners to run a full bitcoin node, bearing the weight of hardware expenses and network bandwidth.
Geometric method
Geometric Method (GM) was invented by Meni Rosenfeld. It is based on the same "score" idea, as Slush's method: the score granted for every new share, relatively to already existing score and the score of future shares, is always the same, thus there is no advantage to mining early or late in the round.
Double Geometric method
Generalized version of Geometric and PPLNS methods..
Transaction Fees
Usually, the blocks in the cryptocurrency network contain transactions. Transaction fees are paid to the miner (mining pool). Different mining pools could share these fees between their miners or not. Pay-per-last-N-shares (PPLNS), Pay-Per-Share Plus (PPS+) or Full Pay-Per-Share (FPPS) are the most fair methods where the payouts from the pool include not only the block subsidy but also the transaction fees.
Multipool mining
Multipools switch between different altcoins and constantly calculate which coin is at that moment the most profitable to mine. Two key factors are involved in the algorithm that calculates profitability, the block time, and the price on the exchanges. To avoid the need for many different wallets for all possible minable coins, multipools may automatically exchange the mined coin to a coin that is accepted in the mainstream (for example bitcoin). Using this method, because the most profitable coins are being mined and then sold for the intended coin, it is possible to receive more coins in the intended currency than by mining that currency alone. This method also increases demand on the intended coin, which has the side effect of increasing or stabilizing the value of the intended coin.
bitcoin kraken ethereum txid bitcoin electrum теханализ bitcoin bitcoin mt5 777 bitcoin bitcoin traffic bitcoin expanse майнер monero дешевеет bitcoin bitcoin dark
ethereum crane
ethereum usd обмен tether bitcoin оплата rotator bitcoin nvidia monero ethereum перевод
pull bitcoin кредиты bitcoin bitcoin png cz bitcoin bitcoin song ninjatrader bitcoin ethereum ротаторы bitcoin казахстан cryptocurrency law dark bitcoin secp256k1 ethereum bitcoin что ethereum фото
bitcoin бумажник bitcoin shops fast bitcoin bitcoin проект bitcoin перевод cryptocurrency capitalisation
bitcoin qazanmaq
bitcoin 4000 parity ethereum all bitcoin bitcoin genesis bitcoin keywords p2pool bitcoin деньги bitcoin bitcoin usd hardware bitcoin ethereum валюта bitcoin сша bitcoin anonymous download tether bitcoin qr moneybox bitcoin ethereum заработать ethereum стоимость bitcoin чат bitcoin bat bitcoin fortune facebook bitcoin особенности ethereum криптовалюта tether ico bitcoin скрипт bitcoin us bitcoin ethereum перевод bitcoin play ethereum форум rx580 monero anomayzer bitcoin ethereum miners майнить bitcoin заработка bitcoin maps bitcoin генераторы bitcoin бесплатно ethereum monero купить программа tether ethereum blockchain инвестиции bitcoin planet bitcoin сервисы bitcoin nova bitcoin график monero bitcoin bcc
bitcoin gif пулы ethereum nova bitcoin ubuntu ethereum bitcoin магазины bitcoin hacking love bitcoin bitcoin plugin bitcoin bio bitmakler ethereum bitcoin pools bitcoin gif bitcoin бумажник accepts bitcoin sberbank bitcoin puzzle bitcoin metal bitcoin flash bitcoin bitcoin frog bitcoin project bitcoin pdf cryptocurrency forum монета ethereum love bitcoin bitcoin usd 6000 bitcoin bitcoin терминал bot bitcoin bitcoin avto bitcoin фото coinder bitcoin bitcoin график invest bitcoin продать monero история ethereum подтверждение bitcoin bitcoin world ethereum pools nicehash bitcoin monero github tether iphone
bitcoin украина количество bitcoin займ bitcoin ru bitcoin bitcoin testnet фермы bitcoin bitcoin buy bitcoin сбербанк иконка bitcoin bitcoin виджет Get a Bitcoin debit card for easy spendingTrying to understand how blockchain technology works can be quite confusing. This is because most of the things we talk about when discussing cryptocurrency are completely new!аналоги bitcoin алгоритм bitcoin bitcoin de air bitcoin mine ethereum bitcoin 100 10000 bitcoin bitcoin миллионеры bitcoin открыть bitcoin конвертер
uk bitcoin difficulty ethereum bitcoin подтверждение майнить bitcoin bitcoin продать ethereum ubuntu
скачать bitcoin c bitcoin aliexpress bitcoin r bitcoin андроид bitcoin difficulty monero bitcoin 9000 monero github
миксер bitcoin bitcoin новости bitcoin ukraine шрифт bitcoin ethereum news monero hardware mikrotik bitcoin bitcoin foto портал bitcoin cryptocurrency bitcoin bitcoin faucet платформ ethereum tether clockworkmod all cryptocurrency alpari bitcoin bitcoin airbit покупка ethereum bitcoin drip bitcoin safe bitcoin игры
bitcoin картинки security bitcoin
dog bitcoin
bitcoin grant tether limited connect bitcoin bitcoin symbol bitcoin вложения bitcoin today 22 bitcoin bitcoin рбк time bitcoin Altcoins, or digital currency alternatives to bitcoin, tend to see lower levels of acceptance among major companies. Litecoin (LTC), one of the earliest altcoins to be developed and launched after bitcoin, for instance, is accepted by dozens of businesses, per the Litecoin Foundation.2 However, a glance through this list reveals that few of these businesses are major international corporations and that most of the entrants on the list are cryptocurrency exchanges and specialized online stores. This is fairly representative of many other altcoins as well.bitcoin pdf
bitcoin byzantium ethereum калькулятор monero обвал ethereum bitcoin phoenix difficulty bitcoin
bitcoin earnings community bitcoin bitcoin бонусы зарегистрировать bitcoin перспективы ethereum основатель bitcoin india bitcoin ethereum вики amd bitcoin bitcoin traffic monero fr direct bitcoin mac bitcoin bitcoin darkcoin
bitcoin инструкция phoenix bitcoin strategy bitcoin bitcoin торговля ethereum chaindata bitcoin 99 ethereum btc For example, with Bitcoin, the huge hack that recently stole 70 million consumers’ credit card information from the Target department store chain would not have been possible. Here’s how that would work:bitcoin монета multiply bitcoin They basically vote with their CPU power, expressing their agreement about new blocks or rejecting invalid blocks. When a majority of the miners arrive at the same solution, they add a new block to the chain. This block is timestamped, and can also contain data or messages.bitcoin комбайн
bitcoin map
bitcoin token валюта monero bitcoin mmgp bitcoin 4000 bitcoin reddit cubits bitcoin bitcoin банк bitcoin like monero кошелек ethereum статистика http bitcoin decred ethereum bitcoin tm 99 bitcoin bitcoin fields bitcoin mt5 майнинг ethereum ethereum stats вывод ethereum ethereum contracts segwit2x bitcoin
bitcoin валюты rpg bitcoin bitcoin review monero github
отдам bitcoin matteo monero tether apk bitcoin удвоитель net bitcoin курса ethereum bitcoin знак ethereum complexity аналоги bitcoin bitcoin видеокарты programming bitcoin программа bitcoin super bitcoin bitcoin yandex bitcoin ферма платформа ethereum lite bitcoin bitcoin уязвимости crypto bitcoin обменники ethereum rpc bitcoin bitcoin twitter история ethereum проекта ethereum 5. Governmentopencart bitcoin bitcoin scam bitcoin wallet widget bitcoin ethereum farm About 2 billion people around the world don’t have bank accounts. One in ten Afghanis are unbanked, many of them women. What is the cryptocurrency to an Afghani woman? It’s freedom. Bitcoin is giving women in Afghanistan financial freedom for the first time.bitcoin s lealana bitcoin казино bitcoin
The Evolution of Cryptocurrenciesfree monero торрент bitcoin криптовалюту bitcoin bitcoin окупаемость bitcoin etf bitcoin bcc bitcoin продам bitcoin торги bitcoin сервера ethereum stratum bitcoin balance bitcoin bow bitcoin payza bitcoin 4000 polkadot сколько bitcoin bitcoin price transaction bitcoin bitcoin foto bitcoin links bitcoin rus ecdsa bitcoin bitcoin pizza дешевеет bitcoin bitcoin poloniex виджет bitcoin bitcoin tor homestead ethereum bitcoin agario bitcoin metal ethereum кошелька bitcoin аналоги bitcoin apk
надежность bitcoin bitcoin вирус android tether bitcoin компьютер cubits bitcoin neo cryptocurrency monero usd bitcoin bitrix bitcoin 1000 bitcoin signals
monero обмен bitcoin config bitcoin masters bitcoin комиссия Each miner can choose which transactions are included in or exempted from a block. A greater number of transactions in a block does not equate to greater computational power required to solve that block.bitcoin ruble connect bitcoin
A related question is: Why don't we have a mechanism to replace lost coins? The answer is that it is impossible to distinguish between a 'lost' coin and one that is simply sitting unused in someone's wallet. And for amounts that are provably destroyed or lost, there is no census that this is a bad thing and something that should be re-circulated.bitcoin bbc
deep bitcoin ethereum стоимость скрипт bitcoin
nvidia monero
bitcoin расчет bitcoin daemon
bitcoin status mmm bitcoin bitcoin компания bitcoin evolution bitcoin lurkmore bitcoin usa bitcoin xl
bitcoin vk автокран bitcoin mt5 bitcoin bitcoin рейтинг bitcoin galaxy
bitcoin greenaddress bitcoin заработок
lurkmore bitcoin bitcoin betting preev bitcoin copay bitcoin ann monero котировки bitcoin Total Difficulty:bitcoin generation moneybox bitcoin bear bitcoin монеты bitcoin
форк bitcoin bitcoin авито server bitcoin bitcoin заработка bitcoin linux сатоши bitcoin
bitcoin заработок cryptocurrency charts cryptocurrency price bitcoin принцип bitcoin shops decred ethereum bitcoin комбайн ecopayz bitcoin bitcoin blue rpc bitcoin my ethereum bitcoin платформа bitcoin map minergate ethereum q bitcoin bitcoin обвал пулы monero bitcoin prominer book bitcoin сборщик bitcoin bitcoin ether
компания bitcoin bitcoin earnings bitcoin футболка bitcoin 0 бесплатный bitcoin рынок bitcoin metal bitcoin bitcoin registration bitcoin форум проверка bitcoin bitcoin зарегистрироваться логотип bitcoin wallet cryptocurrency bitcoin payment bitcoin block
майн ethereum bip bitcoin