Understanding Bitcoin Mining Fundamentals Explained

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This payment system guarantees payments and leaves the miners with hardly any risk of not being paid for their contribution. The downside of this scheme is the high fees the pool owners charge, to mitigate the risk they take by paying frequently.

Proportional: Just like in PPS, miners distribute shares along the block finding period. The more hashing energy you have and the longer you mined to your cube, the more stocks you filed. Once a block is found, the pool pay the miners according to the amount of shares they obtained.

But in this payment method, the value that you will get for each share will equal the block rewards divided by the entire number of shares submitted by all miner. This means that the more miners that join the pool, the lower the value of each share you recieve.

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Score-based: This payment method was designed to prevent miners from pool-hopping. Your mining period and hashing power are calculated into a scoring hash speed score. The longer you stay on the pool, the greater your score is and the greater the value of the  shares you get. Once you stop mining, your score gets smaller and the value of your shares drop accordingly.

Pay per standard N Shares (PPLNS): In PPLNS, miners only get paid for stocks received during a predefined window which ends in the block solving. Unlike other payment schemes, shares received outside the window will not be rewarded in any way. This window can be defined as a period frame (uncommon), or with a certain number (N) that represents the last shares received up to the block solving. .

By way of example, if N equals 1 Billion, once a block is found only the previous 1 Billion shares will be rewarded. While not defined anywhere explicitly, N is generally set as a multiple of this mining pool issue using a constant, typically two.

For this reason, PPLNS can be known as Pay per Luck Shares. When implemented properly, miners cant predict the ideal time to join, so they can either get higher rewards when they must receive more shares within the last N shares, or find no reward at all if they didnt.

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Announced in 2010, SlushPool was the very first Bitcoin mining pool and undoubtedly led the way for many other mining pools ahead of time. Founded by SatoshiLabs current CEO Marek Palatinus (aka Slush), its based in the Czech Republic and follows a score-based method to discourage pool-hopping.

This is a medium-large sized pool. SlushPool claims a 2% commission from each block solving reward. SlushPools dashboard is very user friendly and provides excellent detail with regular updates. While go to the website it may not be the largest of the Bitcoin mining pools, its certainly considered one of the best.

Antpool is a Chinese Bitcoin mining pool run by Bitmain Technologies. It's medium in size. One advantage Antpool has is that you can pick between PPLNS (0% fee) and PPS+ (2% fee), each of which have their own advantages.

In terms of payments, theyre made once daily if the amount exceeds 0.001 Bitcoin. Those new to Bitcoin mining will love the clean interface. The dashboard clearly displays earnings and hashrates. There are also a variety click site of security options, including two-factor authentication, email alerts, and wallet locks.

Known for their wallet and their own blockchain explorer, BTC.com have been around for some time, before opening a pool in 2016. Owned by Bitmain Tech, BTC.com is the largest pool around, in the time of writing. BTC.com possess their own payment system, FPPS, which similar to PPS+ include TX charges in the payouts, along with the block reward.

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F2Pool is a medium-large pool situated in 2013. Operating a PPS+ reward system, F2Pool takes a 2.5% fee, which is a bit on the large side.

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Besides Bitcoin, F2Pool also supports mining Litecoin (LTC), Ethereum (ETH), Zcash (ZEC), as well as additional other coins. Theres a daily automatic payout, and the minimum withdrawal is 0.005 BTC. Unlike a few Chinese Bitcoin mining pools, it's an English interface. The design is quite straightforward, with information presented more in a clear and concise manner. .

Also known as KanoPool, Kano CKPool was founded in 2014. This little Bitcoin mining pool provides PPLNS payment model, charging a 0.9% commission.

With respect to payout, per each block found you will need to wait +101 block confirmations to get paid, which could take some time.

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This is a relatively straightforward pool having an interface that could do with an upgrade as its not the most user friendly. It doesnt have much in the way of features, but it will possess two-factor authentication to get an additional layer of security.

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