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 создатель api bitcoin bitcoin 50 ethereum обменники продажа bitcoin
bitcoin орг
bitcoin биткоин обменять ethereum bitcoin daily bitcoin биткоин bitcoin hosting bitcoin database
bitcoin spin bitcointalk ethereum token ethereum bitcoin fan monero fr monero прогноз шифрование bitcoin
bitcoin maps е bitcoin ubuntu bitcoin blogspot bitcoin bit bitcoin обновление ethereum bitcoin лого
torrent bitcoin
обменники bitcoin joker bitcoin bear bitcoin bitcoin earnings bitcoin avto bitcoin microsoft bitcoin price bitcoin лотереи комиссия bitcoin bitcoin получить bitcoin оплатить tether yota As the ledger sits in the cloud, no one person can control it and any changes have to be made with the agreement of two or more parties to a transaction. No one person can tamper with an entry after it’s been recorded and it can only be reversed out with a visible contra entry, which is also agreed by all relevant parties.программа bitcoin алгоритм bitcoin bitcoin символ 100 bitcoin air bitcoin casinos bitcoin ethereum blockchain торги bitcoin bitcoin arbitrage bitcoin get ethereum падение tether gps скрипт bitcoin
bitcoin captcha cryptocurrency wallets bitcoin завести доходность ethereum bitcoin бизнес keystore ethereum
bonus bitcoin bitcoin переводчик
bitcoin комментарии planet bitcoin ethereum упал credit bitcoin bitcoin income bitcoin steam
ethereum хардфорк
bitcoin онлайн карты bitcoin bitcoin analytics ropsten ethereum bitcoin onecoin bitcoin bloomberg monero client обмен tether 1 monero fake bitcoin монета ethereum bitcoin вложить пузырь bitcoin bitcoin сети курсы bitcoin oil bitcoin koshelek bitcoin майнинга bitcoin bitcoin de There is a general belief that over time it will become more and more difficult to make changes to the base protocol as the ecosystem grows. This is because there will be fewer and fewer changes that are uncontroversial to the wider variety of perspectives and incentives of the user base. As such, it will be more likely that improvements will have to take place in other layers built on top of Bitcoin.bitcoin основатель
by bitcoin gift bitcoin арестован bitcoin bitcoin ads circle bitcoin ethereum токены se*****256k1 ethereum
bitcoin обменник
bitcoin wallpaper bitcoin 2020 ethereum кошелька course bitcoin bitcoin reklama
bitcoin scanner
bitcoin вконтакте обменники bitcoin bitcoin etf mindgate bitcoin trading bitcoin bitcoin баланс tether валюта bitcoin daily bitcoin change monero алгоритм продам ethereum bitcoin protocol
reddit ethereum ethereum wallet bitcoin arbitrage ethereum forks аккаунт bitcoin bitcoin get se*****256k1 ethereum surf bitcoin bitcoin maps продать monero http bitcoin я bitcoin value bitcoin bitcoin кранов rocket bitcoin ethereum котировки bitcoin hesaplama обмен bitcoin ethereum miner free ethereum Make money lose its value and people will do dumb shit because doing dumb shit becomes more rational, if not encouraged. People that would otherwise be saving are forced to take incremental risk because their savings are losing value. In that world, savings become financialized. And when you create the incentive not to save, do not be surprised to wake up in a world in which very few people have savings. The empirical evidence shows exactly this, and despite how much it might astound a tenured economics professor, the lack of savings induced by a disincentive to save is very predictably a major source of the inherent fragility in the legacy financial system.bitcoin приложение bitcoin иконка bitcoin world программа tether bitcoin puzzle обмен tether bitcoin x2 mac bitcoin
Through this mechanism, miners are maximally incentivized to produce honest, valid work and to work within the consensus of the chain at all times; it is either be paid or receive nothing. It is also why the higher the cost to perform the work, the more secure the network becomes. The more energy required to write or rewrite bitcoin’s transaction history, the lower the probability that any single miner could (or would) undermine the network. The incentive to cooperate increases as it becomes more costly to produce work which would otherwise be considered invalid by the rest of the network. As network security increases, bitcoin becomes more valuable. As the value of bitcoin rises and as the costs to solve blocks increases, the incentive to produce valid work increases (more revenue but more cost) and the penalty for invalid work becomes more punitive (no revenue and more cost). bitcoin создать client ethereum bitcoin trader bitcoin 3
bitcoin visa bitcoin rbc bitcoin конец
store bitcoin status bitcoin forum bitcoin bitcoin minergate халява bitcoin This should be taken as an expanded version of the concept of 'dollars' and 'cents' or 'BTC' and 'satoshi'. In the near future, we expect 'ether' to be used for ordinary transactions, 'finney' for microtransactions and 'szabo' and 'wei' for technical discussions around fees and protocol implementation; the remaining denominations may become useful later and should not be included in clients at this point.tether android bitcoin xapo laundering bitcoin wallet tether ethereum io шифрование bitcoin bitcoin stock bitcoin paypal сборщик bitcoin bitcoin microsoft bitcoin fpga расшифровка bitcoin
store bitcoin bitcoin rt mercado bitcoin bitcoin investment ethereum бесплатно cryptocurrency price ethereum перспективы bitcoin flapper
tether usd bitcoin click шифрование bitcoin
транзакции ethereum cryptocurrency capitalization bitcoin выиграть hack bitcoin ethereum проблемы bitcoin p2p
bitcoin кошелек bitcoin spinner dance bitcoin кран bitcoin euro bitcoin forum ethereum chvrches tether bitcoin knots minergate bitcoin
купить bitcoin fx bitcoin mindgate bitcoin
okpay bitcoin ava bitcoin tether обменник
gambling bitcoin кости bitcoin кредиты bitcoin bitcoin bitrix отзыв bitcoin bitcoin png ethereum падает pay bitcoin bitcoin rt цены bitcoin bitcoin приложение bitcoin paper
прогноз bitcoin bitcoin 3 bitcoin withdrawal bitcoin cny kupit bitcoin ethereum монета bitcoin calculator $563.8 billionbitcoin форум принимаем bitcoin bitcoin регистрация мастернода bitcoin bitcoin обменять создать bitcoin fox bitcoin автосборщик bitcoin
создатель ethereum ethereum frontier bitcoin реклама генераторы bitcoin bitcoin ферма bitcoin indonesia ethereum platform перспектива bitcoin bitcoin сша bitcoin фермы
hosting bitcoin bitcoin шахта bitcoin register bitcoin block bitcoin captcha ethereum алгоритм net bitcoin server bitcoin сервера bitcoin ethereum ann monero обмен stealer bitcoin is bitcoin bitcoin heist bitcoin security отзыв bitcoin bitcoin pdf keepkey bitcoin lurkmore bitcoin avatrade bitcoin
bitcoin amazon платформу ethereum bitcoin wmz ethereum 4pda bitcoin описание doubler bitcoin bank cryptocurrency rx560 monero bitcoin bow client bitcoin bitcoin bitcoin nvidia Has a DAO been tried before?ethereum transactions 2018 bitcoin yandex bitcoin bitcoin chains bitcoin xapo кости bitcoin ethereum график блокчейн ethereum ethereum курсы bitcoin книги bitcoin сша ava bitcoin bitcoin quotes nya bitcoin bitcoin get ethereum supernova bitcoin hyip dollar bitcoin теханализ bitcoin bitcoin суть ethereum miner
cgminer bitcoin bitcoin rigs foto bitcoin Mined bitcoinscoinmarketcap bitcoin direct bitcoin click bitcoin обменник bitcoin iobit bitcoin
ethereum node криптовалюту bitcoin криптовалюту bitcoin bitcoin china agario bitcoin auction bitcoin weekend bitcoin
spend bitcoin bitcoin mmm bitcoin s bitcoin python кошелька ethereum ethereum капитализация bitcoin ios ethereum обмен ethereum online bitcoin earnings bitcoin skrill
приложения bitcoin bitcoin 1000 blake bitcoin bitcoin boom china cryptocurrency bitcoin forums bitcoin aliexpress прогноз ethereum bitcoin чат bitcoin python today bitcoin
accepts bitcoin bitcoin xl
bitcoin loan bitcoin iphone bitcoin форекс bitcoin flapper разработчик bitcoin
hack bitcoin ethereum coins bitcoin развод bitcoin miner cryptocurrency mining ethereum эфир loans bitcoin лотерея bitcoin bitcoin играть
ethereum io bitcoin проект freeman bitcoin bitcoin bat ethereum сложность майнеры bitcoin apple bitcoin ethereum кран salt bitcoin пожертвование bitcoin ethereum dao bitcoin монеты bitcoin galaxy monero кран bitcoin download monero майнинг генераторы bitcoin
ethereum tokens альпари bitcoin прогноз ethereum bitcoin help prune bitcoin ethereum видеокарты hourly bitcoin monero benchmark cubits bitcoin ethereum myetherwallet takara bitcoin карты bitcoin ethereum ubuntu the ethereum bitcoin crush ethereum complexity
bounty bitcoin ethereum пулы How does an Ethereum app work?bitcoin 100 развод bitcoin lamborghini bitcoin bitcoin icon bitcoin nedir bitcoin nachrichten bitcoin gpu разработчик ethereum Algorithm-based (seignorage).Monero Mining: Full Guide on How to Mine Monerobitcoin шахты kupit bitcoin bitcoin bloomberg bitcoin бесплатно создатель bitcoin people bitcoin
bear bitcoin bitcoin journal bitcoin выиграть bitcoin команды карты bitcoin bitcoin swiss ethereum block bitcoin video bitcoin hd wei ethereum обменники bitcoin bitcoin purse
bitcoin nvidia bitcoin play bitcoin мошенничество bitcoin wordpress The word cryptocurrency written atop semiconductor chips and circuitry. fx bitcoin monero transaction pplns monero bitcoin yandex ethereum ico genesis bitcoin p = probability an honest node finds the next blockethereum coin total cryptocurrency
эпоха ethereum
tether майнить bitcoin usd перевод tether waves cryptocurrency bitcoin xyz bitcoin alliance bitcoin ethereum
monero logo кликер bitcoin bitcoin clouding
bitcoin заработать lite bitcoin сложность monero ad bitcoin сша bitcoin
dat bitcoin bitcoin redex monero алгоритм bitcoin в bitcoin список tether mining monero wallet
check bitcoin алгоритм bitcoin программа ethereum сервер bitcoin cgminer ethereum ethereum упал казино ethereum торговать bitcoin ethereum контракт bitcoin 3d ethereum info locate bitcoin bitcoin суть bitcoin cryptocurrency график bitcoin arbitrage bitcoin gui monero bot bitcoin bitcoin покупка bitcoin wmx ethereum client
bitcoin минфин форумы bitcoin
ethereum github life bitcoin mini bitcoin проблемы bitcoin zone bitcoin blogspot bitcoin metatrader bitcoin bitcoin server компиляция bitcoin bitcoin бонусы вики bitcoin кошелька ethereum monero free rpg bitcoin locals bitcoin bitcoin tor сайт bitcoin machine bitcoin bitcoin hunter
pplns monero monero прогноз bitcoin проверить bitcoin book bitcoin reklama credit bitcoin video bitcoin bitcoin php usb bitcoin котировки ethereum ethereum курс 2048 bitcoin ethereum акции алгоритм ethereum monero ico ethereum network bitcoin bat 