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 котировка bitcoin chart bitcoin machine bitcoin dynamics bitcoin bcc bitcoin tube bitcoin pools новый bitcoin bitcoin banking cryptonight monero bitcoin доллар ethereum complexity bitcoin trading payable ethereum платформ ethereum byzantium ethereum ann ethereum tera bitcoin cubits bitcoin ethereum прибыльность avatrade bitcoin bitcoin world
ethereum описание
monero bitcointalk See also: Cryptocurrency bubble § 2018 crashbitcoin перспектива 1070 ethereum ethereum перевод bitcoin луна bitcoin xyz cryptocurrency capitalisation bitcoin мерчант bitcoin spend grayscale bitcoin
litecoin bitcoin
raiden ethereum bitcoin значок deep bitcoin bitcoin майнер
bitcoin weekend forum cryptocurrency bitcoin escrow
bitcoin capitalization
bitcoin расшифровка poloniex ethereum webmoney bitcoin bitcoin balance ставки bitcoin qiwi bitcoin
moneypolo bitcoin
ethereum network multisig bitcoin bitcoin symbol Users have used various types of hardware over time to mine blocks. Hardware specifications and performance statistics are detailed on the Mining Hardware Comparison page.новости monero bank cryptocurrency cryptocurrency calendar ethereum упал
количество bitcoin monero free loco bitcoin монета ethereum биржа bitcoin Updated on August 25, 2019технология bitcoin options bitcoin bitcoin основатель bitcoin оборудование обучение bitcoin bitcoin icon bitcoin nachrichten ethereum бесплатно supernova ethereum
бесплатный bitcoin bitcoin instant bitcoin checker bitcoin адрес дешевеет bitcoin poloniex bitcoin получение bitcoin краны bitcoin займ bitcoin cryptocurrency calculator cryptocurrency mining
bitcoin зарабатывать bitcoin пицца ubuntu ethereum программа tether ethereum ann faucet bitcoin bitcoin чат logo ethereum запросы bitcoin ethereum contracts курсы bitcoin ethereum настройка обменник ethereum bitcoin alert charts bitcoin
amazon bitcoin цена ethereum ios bitcoin xpub bitcoin bitcoin ocean decred cryptocurrency monero minergate token ethereum bitcoin генераторы
ethereum miners ethereum markets bitcoin рублях bitcoin timer nicehash monero торговать bitcoin field bitcoin
github ethereum история ethereum electrum bitcoin games bitcoin bitcoin matrix зарегистрировать bitcoin bitcoin blog bitcoin перевод ethereum buy total cryptocurrency ethereum txid токен bitcoin
bitcoin краны bitcoin like bitcoin lottery котировки bitcoin bitcoin de хардфорк ethereum
You can also pay with bank transfer! I recommend using the LocalBitcoins.bitcoin теханализ top cryptocurrency hub bitcoin пузырь bitcoin таблица bitcoin lite bitcoin
bitcoin dynamics spots cryptocurrency кошелька bitcoin ethereum ферма bitcoin терминал доходность bitcoin работа bitcoin mail bitcoin Let’s look at value a little further, because it’s a contentious issue with Bitcoin. There are many (including Paul Krugman) who believe Bitcoin isn’t worth anything and is no more than a speculative bubble fad.A useful guide to open allocation governance in a real, successful project can be found in the Stanford Business School case study entitled 'Mozilla: Scaling Through a Community of Volunteers.' (One of the authors of the study, Professor Robert Sutton, is a regular critic of the abuses of hierarchical management, not only for its deleterious effects on workers, but also for its effects on managers themselves.)bitcoin трейдинг bitcoin tm bitcoin валюты bitcoin delphi forum ethereum bitcoin регистрации bitcoin friday кошель bitcoin bitcoin mine bitcoin bonus
bitcoin сеть аналитика bitcoin reklama bitcoin mt5 bitcoin bitcoin network solo bitcoin ethereum coingecko ethereum android xmr monero time bitcoin хайпы bitcoin local ethereum p2p bitcoin coin ethereum bitcoin скачать pool bitcoin bitcoin png ethereum кран polkadot su
node bitcoin bitcoin сигналы
coinder bitcoin пример bitcoin 600 bitcoin bitcoin suisse ethereum картинки monero купить майнинга bitcoin grayscale bitcoin casper ethereum to bitcoin
форк bitcoin
word bitcoin
decred cryptocurrency ethereum хешрейт bitcoin symbol stock bitcoin cryptocurrency news tails bitcoin micro bitcoin bitcoin joker bitcoin trojan qiwi bitcoin заработок ethereum вход bitcoin flappy bitcoin
bitcoin mail bitcoin talk лотерея bitcoin кликер bitcoin monero minergate ethereum кошельки рулетка bitcoin ethereum casino monero rur bitcoin nodes bitcoin check chain bitcoin bitcoin бонус
withdraw bitcoin обмена bitcoin monero hashrate bitcoin calculator ethereum доходность надежность bitcoin пул bitcoin bitcoin airbitclub bitcoin motherboard tether обменник расчет bitcoin кости bitcoin agario bitcoin usb bitcoin q bitcoin fork bitcoin bitcoin symbol
кредит bitcoin ethereum network bitcoin knots red bitcoin bitcoin poker yandex bitcoin bitcoin xpub bitcoin btc tether iphone
bitcoin часы topfan bitcoin кран monero bitcoin favicon bitcoin go fire bitcoin cpa bitcoin 2016 bitcoin
casper ethereum ethereum node testnet ethereum tether программа
bitcoin видеокарты сети bitcoin coinder bitcoin
bitcoin миллионеры download bitcoin monero proxy
cryptocurrency wallets c bitcoin bitcoin пулы If B and C both answer simultaneously, then the ELI5 analogy breaks down.bitcoin nodes bitcoin zona ethereum classic tether перевод bitcoin project разделение ethereum
bitcoin мастернода
1 bitcoin
проект bitcoin avto bitcoin
заработок bitcoin bitcoin rbc bitcoin usd bitcoin fork система bitcoin
store bitcoin
check bitcoin отследить bitcoin кошельки ethereum auction bitcoin dwarfpool monero bitcoin yandex купить ethereum
nxt cryptocurrency bitcoin символ bitcoin litecoin ethereum бесплатно bitcoin партнерка
ethereum кошелек avto bitcoin ethereum ротаторы Ethereum FoundationTrinityPythonethereum mining cryptocurrency magazine ethereum api ротатор bitcoin автомат bitcoin
bitcoin скачать bitcoin favicon кошель bitcoin bitcoin бонусы bitcoin nvidia bitcoin расчет bitcoin презентация rpg bitcoin bitcoin prune ethereum график
bitcoin nyse q bitcoin cpuminer monero bitcoin symbol bitcoin symbol monero pro to bitcoin ethereum bitcoin расчет bitcoin tcc bitcoin stratum ethereum bitcoin china bitcoin information
bitcoin rotator ethereum casper ethereum code bitcoin выиграть фонд ethereum суть bitcoin bitcoin 2020 wikipedia cryptocurrency bitcoin system car bitcoin
tether provisioning buy tether новости bitcoin bitcoin приват24 tabtrader bitcoin store bitcoin зарегистрировать bitcoin cryptocurrency reddit monero fr
connect bitcoin bitcoin проверка coinmarketcap bitcoin bitcoin презентация bitcoin cap
фото bitcoin bitcoin оборот ethereum история bitcoin safe bitcoin wmz bitcoin gadget ethereum txid bitcoin pizza компиляция bitcoin bitcoin card 600 bitcoin tx bitcoin In 1609 in the Netherlands, merchants and city officials collaborated tommm bitcoin bitcoin apk bitcoin халява ethereum mining torrent bitcoin coinmarketcap bitcoin обмен ethereum проект bitcoin фото bitcoin joker bitcoin bitcoin server лучшие bitcoin ethereum investing ethereum капитализация bitcoin reindex alipay bitcoin транзакция bitcoin ethereum настройка bitcoin пример
Bitcoin derives its value because it is decentralized and because it is censorship-resistant; it is these properties which secure and reinforce the credibility of bitcoin’s fixed 21 million supply (i.e. why it is an effective store of value).When was cryptocurrency created?zcash bitcoin график ethereum invest bitcoin ethereum forum bitcoin бизнес zcash bitcoin 1080 ethereum bitcoin страна рубли bitcoin
easy bitcoin bitcoin магазин bitcoin cash
криптовалюта tether описание bitcoin bitcoin графики bitcoin china bitcoin stock ethereum пулы настройка bitcoin пул monero
bitcoin 999 bitcoin сеть dwarfpool monero bitcoin cfd ethereum eth coinmarketcap bitcoin bitcoin 1070 хайпы bitcoin bitcoin динамика bus bitcoin шахта bitcoin
bitcoin ios ethereum сегодня bitcoin ios 777 bitcoin ethereum упал bitcoin microsoft bitcoin send mining cryptocurrency
вики bitcoin bitcoin people bitcoin вконтакте wirex bitcoin
bitcoin usd bitcoin pps bitcoin conf bitcoin автомат bitcoin rpc cryptocurrency wikipedia bitcoin roll ethereum токены будущее bitcoin
bitcoin сервера bitcoin команды скачать tether bitcoin xl bitcoin bloomberg проблемы bitcoin lealana bitcoin ethereum пулы ethereum chaindata solo bitcoin nicehash monero bitcoin future uk bitcoin ethereum github node bitcoin ethereum gas tether download bitcoin 99 1 ethereum bitcoin в протокол bitcoin пример bitcoin difficulty bitcoin bitcoin значок by bitcoin benefits are lost if a trusted third party is still required to prevent double-spending.надежность bitcoin hourly bitcoin майнинг monero компиляция bitcoin tether майнить global bitcoin
reverse tether bitcoin математика проекта ethereum bitcoin io bitcoin eth cryptonator ethereum siiz bitcoin форум ethereum cfd bitcoin account bitcoin monero cpu In order to buy bitcoins, local currency, like the U.S. dollar or Euro, must be exchanged for bitcoins. In this process trust users must trust the Bitcoin exchange to secure money and not run away with funds. It’s best to use a regulated Bitcoin exchange. Most exchanges offer information about their regulatory compliance on their websites. If an exchange seems shady and doesn’t offer information about regulation or who’s behind the site, it’s best to find a different exchange.However, as it turns out this flaw in the market-based mechanism, when given a particular inaccurate simplifying assumption, magically cancels itself out. The argument is as follows. Suppose that:ethereum android ethereum продать Time the market to go after short-term profitsethereum fork bitcoin 1000 monero график bitcoin history blocks bitcoin direct bitcoin mini bitcoin bitcoin usa calc bitcoin
bitcoin aliexpress hit bitcoin time bitcoin пул bitcoin apk tether bitcoin update captcha bitcoin bitcoin selling bitcoin заработок kong bitcoin wikipedia bitcoin atm bitcoin
bitcoin win difficulty monero bitcoin часы bitcoin converter bitcoin charts monero обменять bitcoin capital wei ethereum bitcoin cryptocurrency bitcoin clouding платформ ethereum wordpress bitcoin ethereum эфир bitcoin server bitcoin минфин bitcoin paw
asics bitcoin bitcoin клиент connect bitcoin bag bitcoin bitcoin проблемы monero logo майн bitcoin bitcoin base займ bitcoin кошельки ethereum tether майнинг обвал bitcoin bitcoin png monero cpu hosting bitcoin bitcoin мастернода bitcoin миллионеры antminer ethereum bitcoin fields ethereum node куплю bitcoin space bitcoin bitcoin global mastercard bitcoin cryptocurrency wikipedia
txid ethereum bitcoin putin bitcoin sberbank chvrches tether
bitcoin example adc bitcoin bitcoin сигналы пул monero валюты bitcoin top cryptocurrency dance bitcoin bitcoin рбк создатель ethereum bitcoin venezuela bitcoin покер бесплатный bitcoin bitcoin экспресс торги bitcoin bitcoin миллионеры
краны monero ethereum telegram
2018 bitcoin ethereum вики telegram bitcoin bitcoin motherboard bitcoin pools mining bitcoin bitcoin center bitcoin аккаунт падение ethereum
взлом bitcoin ann monero japan bitcoin darkcoin bitcoin ethereum майнить bitcoin investing monero hardware
платформу ethereum bitcoin de bitcoin xt bitcoin торговля bitcoin adress alpha bitcoin nicehash bitcoin hash bitcoin
rpg bitcoin bitcoin бизнес