I often hear the word “cryptocurrency mining”, but have you actually experienced mining? One of the words you need to know when mining is “mining pool” .
In this article, I’ll take up mining pools that became a topic even in the event of division and fracture of Bitcoin cash (BCH).
What is a mining pool?
Bitcoins (BTC) are the currencies with the largest market capitalization and mining is also highly competitive. The goal of mining is to find a block ahead of other minors . And if you can find the block first, you can receive rewards and transaction fees.
What is a hash rate?
The hash rate is a numerical value indicating the computing capacity of the machine as translated as mining speed. For example, if it is 10 TH / s, it means that it is possible to calculate a hash of about 10 trillion times per second.
However, with the mining boom in recent years, the hash rate has risen sharply, and it has become more difficult for individuals to have a sufficient hash rate. A mining pool is developed to solve this problem.
The mining pool accepts connections from minors all over the world and puts their hash rate in a pool. As a result, the hash rate as a whole increases, and the probability of finding a block also rises dramatically.
Let’s understand the mechanism of mining pool
Although the mining pool is an ordinary server, it participates in the block chain and approves the block. When the mining pool finds a block that needs to be approved, it requests the participants in the pool to create a hash. This process is called “job” .
And once one of the Pool Participants has generated a hash and succeeded in approving the block, the reward will be sent to the pool address once . Afterwards, remuneration will be distributed according to the workload of participants.
Thorough comparison of payment payment system “PPS” “PPLNS”
There are several types of compensation payout system for mining pools. This allows you to choose the mining pool that is most suitable for you depending on the requirement of the individual. A Bitcoin mining pool should choose where you think you are most equitable and profitable.
- Pay Per Share (PPS)
Pay Per Share will pay the same amount for all shares at the same price . Since payouts are made from the balance of the pool, it features a point that you can withdraw immediately without waiting for the block to be approved. And the possibility that the pool administrator will fraud the minor is eliminated.
This method transfers all the risks to the operator of the pool and enables minimal dispersion for minor. And the possibility of server loss is offset by setting payment amount lower than expected value.
- Pay Per Last N Shares (PPLNS)
PPLNS has a higher payout amount than PPS. Here, compensation is paid to the user who participated in the pool mining when the block was found by mining. Remuneration depends on the contribution of each user.
It can be said that PPLNS is mainly for those who are investing more money by mining called hard core minor. Therefore, people with large numbers in PPLNS will get more payouts.
Let’s check the share of mining pool
First of all, let’s take a look at the Bitcoin’s share by mining pool. According to Blockchain.com, except for Unknown, it is BTC.com that holds the largest share at the moment. BTC.com holds a 19% share and has hash power equivalent to one fifth of the total.
Subsequently, AntPool, SlushPool, and ViaBTC continue to 11.7%, 10.2%, and 8.7%, respectively.
Until then, almost all of the minors were still participating in the pool, but the ratio of Unknown has been increasing recently, and it seems that mining outside the pool is also taking place. The main reason for this is that the hurdle to prepare equipment called ASIC, which is necessary for Bitcoin mining, is high individually.
What is the recommended way to choose a mining pool?
When participating in the pool and mining is done, how should we decide how to participate in the pool? Here we introduce some aspects of choosing a mining pool.
Select according to the abundance of the corresponding currency
There are corresponding currencies in the mining pool and currencies which are not. Some of them correspond to multiple currencies, others there are only one type.
For example, AntPool, a leading mining pool for Bitcoins, also supports currency mining such as ETH, Light Coin (LTC), and Ethernet Classic (ETC).
First of all, I recommend starting from where I find a pool that corresponds to the currency I would like to mining.
Select by share
Choosing by sharing means selecting a popular major mining pool. The major mining pool has a powerful hash power as well as the number of participants, so the probability of finding blocks is also high .
In addition, since major security firms and support systems are solid in major places, it can be said that they can be used with confidence.
However, if you are participating in a major mining pool with Bitcoin mining, you need to be careful as it may have less reward within a certain degree of hash power and may become total minus.
Choose by server stability
The mining pool is pooling users all over the world and performing mining, so the performance of the main server is very important. If this server seems to be down frequently, various problems will occur.
In the worst case, you may not be able to earn rewards or the mining itself may stop, so we recommend you to pay attention to server stability as well.
Stability of each mining pool and troubles of the past can be searched on the Internet, or can be seen on bulletin boards such as Bitcointalk.
CRYPTO TIMES carefully selected! Recommended mining pool 3 selection
However, after all too many choices are too many to choose from among the three mining pools below are recommended!
AntPool is a mining pool operated by Bitmain, the world’s largest mining equipment, and this is also the world’s largest mining pool scale. In order to mining with AntPool, it is necessary to purchase the ASIC sold by the company called Antminer .
As I wrote above, AntPool supports mining of multiple currencies, as well as secure registration of mobile phone numbers, so we are focusing on security, so steadily mining It is suitable for those who want to do.
In addition, we have released a smartphone application that can check the situation of mining, and it can be said that ease of use is complaint.
LA Mining Pool
This mining pool supports multiple currencies, mainly domestic currencies such as Monacoin, Bitzeny and Yenten, and you can minify by selecting your favorite currency. Algorithm also covers several kinds, and mining using ASIC is also possible.
In addition, because it is written in Japanese, people with difficulties in English can easily participate. Since there are also many registered users, and conspicuous server troubles etc are not heard, it can use with confidence.
This mining pool is the largest pool that occupies more than a quarter of the total hash rate of the year. Since it is a mining pool dedicated to the Ethicalam and the Essarim Classic , that point needs attention.
It is a reputation that the design is beautiful, and the convenience that you can register with only the wallet address is also a pool that is used by many minors between intervals.
[Frequently asked questions and answers] Troubleshoot questions about mining pools
Where mining inexperienced people decided a mining pool and thought that they would actually start mining, would you mind thinking of these questions at the head? Finally, I will introduce some frequently asked questions about mining.
Will it profit after all? What is the future?
At the end of November 2018, BTC collapsed and temporarily cut off 400,000 yen. There was a news that a minor had withdrawn from mining, and mining equipment was abandoned without having profit from mining at this price to flowing water.
When mining, it is necessary to calculate the electricity bill and the purchase cost of equipment and so on and understand how much money can be mined and what profit can be done. Of course, if the price of the cryptocurrency is going to rise in the future, it is possible to profit by mining.
However, since nobody knows the future price, it is necessary to judge that point yourself.
How do I join a mining pool?
How to participate in the mining pool depends on each pool. If it is an Ethermine, you can register with only a wallet address, but with AntPool you will need procedures such as purchasing Antminer and registering a phone number.
However, the basic procedure is the same regardless of which mining pool you choose. First, register as a minor from the homepage and download special software. After that, mining starts when software is started.
What is the correlation with the cryptocurrency price?
There is a correlation between price of cryptocurrency and hash rate , including Bitcoin. If the price of a currency rises, profitability also increases, so more minor will do mining. As a result, the hash rate, which is the sum of the minor computing power, also rises.
Conversely, if the price of a currency goes down, the minor shifts to another currency or stops mining, so the hash rate will go down. It is known that this correlation has a certain relation also from past price and hash rate transition.
Of course, there are many other factors that affect the price, but these two correlations become very important in mining.
The mining pool is a mechanism for distributing remuneration to more participants while keeping the network difficulty (Difficulty) constant. With a mining pool, individuals can also easily participate in mining.
However, if hash power concentrates on one mining pool, there are concerns that it may cause centralization and raise the possibility of being attacked.
Even in the problem of Bitcoin cash this time, the power picture of mining pool was frequently taken up, but it is also very important element that the mining pool is dispersed.
Explain how to calculate profits in BTC (Bitcoin) mining!
Article Source: Bitcoin.com, Bitcoins in Ireland, Blockchain.com, Antpool, LA Mining Pool, Ethermine
Author: kaz 【Coin Desk News】 – Source Post: https://crypto-times.jp/what-is-mining-pool/
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