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.
bitcoin air знак bitcoin bitcoin miner calculator cryptocurrency ico bitcoin pump bitcoin bitcoin service bitcoin talk bitcoin 999 bitcoin talk калькулятор bitcoin bitcoin money
bitcoin capitalization
tor bitcoin blog bitcoin ethereum android видеокарта bitcoin bitcoin bit alipay bitcoin daily bitcoin ethereum asic bitcoin air bitcoin airbit bitcoin trojan p2pool bitcoin
bitcoin symbol bitcoin links bitcoin parser блокчейн bitcoin avatrade bitcoin 99 bitcoin sell bitcoin ethereum gas stock bitcoin bitcoin money bitcoin ваучер monero coin bitcoin armory bitcoin калькулятор bitcoin создать rotator bitcoin bitcoin segwit2x bitcoin торги bitcoin hosting antminer ethereum
таблица bitcoin bitcoin course exchange ethereum bitcoin игры yota tether ethereum calculator dog bitcoin bitcoin adress For example, you might set a 20% bonus for the first week of your ICO. That would mean that anyone buying your token in the first week of your ICO, would receive 20% more tokens than they paid for. So, if John buys 100 tokens in the first week, the smart contract sends him 120 tokens.bitcoin in The old friction between technologists and managementAn added advantage for merchants (less so for users) was that it was irreversible, removing the threat of expensive charge-backs. In return, consumers benefit from a wider selection of merchants both domestic and international without worrying about exchange fees. Moreover, the details of their transactions are encrypted which protects their personal data. Bitcoin has no intrinsic value (unlike some other things)bitcoin capital bitcoin зарегистрироваться monero майнинг понятие bitcoin bitcoin xt bitcoin alliance отзывы ethereum magic bitcoin casper ethereum bitcoin стратегия
купить bitcoin hub bitcoin purchase bitcoin bitcoin click lurk bitcoin платформу ethereum bitcoin dance car bitcoin bitcoin etf truffle ethereum кредиты bitcoin doubler bitcoin понятие bitcoin bitcoin virus
faucet cryptocurrency bitcoin vector icon bitcoin Just recently, what gives a great majority of incentive for miners is the block rewards as well. As of writing, for the last 24 hours, 0.3% of the mining income is represented by transaction fees.Monero is Fungibledark bitcoin bitcoin это xbt bitcoin магазин bitcoin bitcoin zebra yandex bitcoin bitcoin 2017 usb tether fork ethereum bitcoin com world bitcoin
mt5 bitcoin bitcointalk ethereum bitcoin background bitcoin magazin bitcoin accelerator claymore monero monero майнить monero client bitcoin fpga что bitcoin monero github продам ethereum payable ethereum mindgate bitcoin bitcoin получение
sell ethereum bitcoin kazanma форк bitcoin
top cryptocurrency coin bitcoin bitcoin картинка blockchain ethereum bitcoin security адрес ethereum bitcoin сети
подтверждение bitcoin script bitcoin bitcoin drip статистика bitcoin ethereum покупка buy ethereum
iso bitcoin
ethereum биткоин cryptocurrency gold bitcoin primedice putin bitcoin bitcoin usa bot bitcoin ethereum erc20 ethereum web3
q bitcoin Due to this rigorous process, Cardano seems to stand out among its proof-of-stake peers as well as other large cryptocurrencies. Cardano has also been dubbed the 'Ethereum killer' as its blockchain is said to be capable of more. That said, Cardano is still in its early stages. While it has beaten Ethereum to the proof-of-stake consensus model it still has a long way to go in terms of decentralized financial applications. Online wallets are also known as 'hot' wallets. Hot wallets are wallets that run on internet-connected devices like computers, phones, or tablets. This can create vulnerability because these wallets generate the private keys to your coins on these internet-connected devices. While a hot wallet can be very convenient in the way you are able to access and make transactions with your assets quickly, they also lack security.bitcoin valet asics bitcoin In October 2014, according to Coindesk report there were more than 7.5 million bitcoin wallets.You can download the EVM, run your smart contract locally in an isolated manner and once you have tested and verified it, you can deploy it on the main network.bitcoin anonymous x2 bitcoin bitcoin рынок
ethereum shares курс bitcoin bitcoin london moon ethereum подтверждение bitcoin download bitcoin ферма ethereum addnode bitcoin
cubits bitcoin sha256 bitcoin tracker bitcoin bitcoin расшифровка rocket bitcoin nicehash bitcoin dapps ethereum bitcoin blue
ropsten ethereum
frog bitcoin ethereum explorer
bitcoin xpub bitcoin usd bitcoin развод bitcoin lucky dwarfpool monero ethereum биткоин ethereum сайт nvidia bitcoin second bitcoin новости ethereum bitcoin email продажа bitcoin monero пул bitcoin scripting bitcoin galaxy зарегистрироваться bitcoin сбербанк ethereum часы bitcoin
future bitcoin форки bitcoin реклама bitcoin ethereum курсы кошельки bitcoin bitcoin суть bitcoin перевод bitcoin instagram сложность bitcoin bitcoin litecoin map bitcoin monero пул wild bitcoin bitcoin перевод
bitcoin регистрация bitcoin qr
доходность ethereum bitcoin purse bitcoin fees кран ethereum новости bitcoin ethereum code 1 bitcoin bitcoin auction bitcoin elena flash bitcoin bitcoin стоимость
avto bitcoin ethereum покупка
spots cryptocurrency view bitcoin краны monero цена ethereum bitcoin карта 33 bitcoin change bitcoin bitcoin окупаемость Source: Coindesk.кошелек tether bear bitcoin bitcoin 123 bitcoin center bitcoin вебмани будущее bitcoin кошелька ethereum bitcoin space bitcoin golden bitcoin timer bitcoin security обмен tether monero client bitcoin register sell ethereum bitcoin india ava bitcoin cryptocurrency trading accepts bitcoin arbitrage cryptocurrency bitcoin trader bitcoin scam bitcoin 30 agario bitcoin dollar bitcoin exmo bitcoin bitcoin scripting okpay bitcoin bitcoin команды monero proxy 777 bitcoin bitcoin доходность android tether rbc bitcoin opencart bitcoin обмен tether bitcoin future Bitcoin is a system of owning and voluntarily transferring amounts of so-called bitcoins, in a manner similar to an on-line banking, but pseudonymously and without reliance on a central authority to maintain account balances. If bitcoins are valuable, it is because they are useful and limited in supply.free monero перевести bitcoin ava bitcoin nanopool monero total cryptocurrency fx bitcoin bitcoin cryptocurrency bitcoin paypal разработчик ethereum bitcoin обменять keystore ethereum