Ethereum now stands out as a digital currency known to everyone. It can play a role in the basic question: everyone is curious about this digital currency, which is in high demand for investments. It is of great importance for investors to closely follow the developments after Bitcoin, which has made great progress and gained value since the day it was first launched.
For example, new bitcoin investors may not have enough information about the mining pool . For this reason, we have compiled all the details about the mining pool or cryptocurrencies that you have in mind. What is a mining pool?
What is a mining pool?
What does it do? How to invest and earn money? What are the good and bad aspects of the mining pool in detail? How much investment is required to participate? We have discussed the answers to enlighten you for all these and similar questions. You can find the details you are curious about in the rest of our content.
As can be understood from the name of the mining pool , it can be defined as the gathering of more than one miner to bring together their processing power to mine with cryptocurrencies and to earn a profit. The prize earned as a result of the game is awarded to the winner.
However, it would not be wrong to compare the mining pool to a lottery ticket. While it is extremely unlikely to win, when it is won it can be potentially tempting for the entire prize to be awarded. You can think of it just as when buying a lottery ticket everyone tends to give their winnings to the winner.
How to Join an Ethereum Mining Pool?
We have stated that mining pools are just like a lottery ticket and have the same system on average. You have to invest to participate in mining pools. Although the investment amounts are not too high, they require constant stability.
Hash rates in mining pools should not reach 51%. Because this situation means a great danger and loss for investors. For example, since the hash rate in a mining pool started to be more than 50% in 2014, all miners left the pool in hesitation.
If you want to have the opportunity to join the mining pool and win, you need to do detailed research. Doing research on how the system works in the pool and how the rewards are distributed will allow you to understand the system and minimize the risk of error.
In the pools, the block awards of the participants are determined by their contributions. However, it is not as easy to grasp the contributions. Collecting these data and having the information before joining the pool will directly increase your chances of winning.
How do mining pools work?
Usually, a mining pool has a coordinator responsible for organizing the miners. This coordinator allows miners to use different nonce values so that they don’t waste hash power by trying to create the same blocks . The coordinators are also responsible for dividing the awards and paying the participants. There are several different methods used to calculate how much work each miner does and determine how much reward they will receive accordingly.
Are mining pools a threat to decentralization?
As you read this article, alarm bells may be ringing in your head. Isn’t Bitcoin so powerful because the blockchain is not under the control of a single entity? What if someone gets the majority of the hash power?
These are very valid questions. If a single entity can capture 51% of the network’s hash power, it can initiate a 51% attack . Thus, it can censor transactions and reverse old transactions. Such an attack could wreak havoc on a cryptocurrency ecosystem.
Will mining pools increase the risk of 51% attack? Answer: maybe, but not very likely.
Theoretically, the first four pools could combine to capture the network. However, this does not make much sense. Even if they manage to launch an attack, Bitcoin’s price will likely go down as the system will be weakened by their attempt. As a result, the value of all the coins they capture will also decrease.
Moreover, pools are not required to have mining equipment. Units direct their machines to the coordinator’s server, but are free to switch to other pools. Keeping the ecosystem decentralized benefits both participants and pool operators. After all, they can only make money if mining continues to be profitable.
There have been few instances to date where its pools have grown to a size that can be seen as alarming. But often, the pool (and its miners) take steps towards reducing the hash rate.
The cryptocurrency mining world has changed forever with the opening of the first mining pool. Pools can be very beneficial for miners who want to get paid more consistently. Among the many schemes available, miners need to find the one that best suits their needs.
In an ideal world, Bitcoin mining would be much more decentralized. However, it can be said that mining is “decentralized enough” for now. In any case, no one would gain from a single pool capturing the majority of the hash rate. Participants will likely prevent this from happening – after all, Bitcoin is managed by users, not miners.
WHAT ARE THE MAIN FACTORS TO CONSIDER WHEN CHOOSING A POOL
Larger pools offer more regular payments, but smaller ones due to the number of participants. Small pools offer less frequent but larger payments. Regardless of the group you choose, in the long run, the rewards you receive will be about the same.
There are several basic methods for calculating pay.
Pay-per-Share (PPS): The user receives a reward for each action that is donated to the pool.
Payment on the last N shares (PPLNS): The method is similar to the proportional one, but each user receives a reward based on the last N shares sent to the pool.
SOLO – payment for the block found. The most profitable type of mining, provided you have immense computing power. Otherwise, you should not rely on luck.
The rarest reward algorithms
PROP (proportional): The user’s reward is proportional to the number of shares invested in the fund.
Score (temporary): the reward depends on the time elapsed since the quota was provided (in other words, if the miner has stopped working with the pool, his reward will start to decrease rapidly).
Funds for mining Bitcoin should have a net reputation for payments to miners. The following platforms have succeeded:
- AntPool. A platform where miners can access not only Bitcoin but also other popular coins. The project is led by BitMaintech, whose specialization is a mining equipment. The commission in the pool is 2.5%. The minimum withdrawal is 0.01 BTC.
- F2Pool. Another place where the Bitcoin exchange rate and the complexity of its extraction stimulate developers to offer the possibility to form blocks of others. There is a pool for BTC since 2013. Commission – 1.5%, automatic payments after reaching 0.01 BTC.
- BW Pool. The Bitcoin mining pool, which has been operating since 2013. A distinctive feature of the platform is the PPLNS system, which involves the absence of commissions, which attracts more participants. Users in Russia have difficulty registering because they cannot receive a verification code.
In this blog, we will tell you which pool is best for bitcoin mining, as well as the 7 best pools for mining bitcoin, litecoin and other cryptocurrencies mined using asics.
It will be about those pools that allow you to mine on your own equipment, and not in the cloud.
First of all, let’s answer the question: “What is a pool”. A pool is a group of miners who join forces with the accelerated generation of blocks and receive rewards based on the advantages that your equipment has brought. Thus, you will get a fairly predictable income, unlike independent mining or individual mining, where the reward depends on you. If your abilities are weak, then you should not rely on winning the solo algorithm!
REVIEWS AND REVIEWS ANTPOOL
Chinese Bitcoin Pool, managed by Bitmain Technologies. It represents 16.9% of the computing power of the network, which makes it the largest at the moment.
The advantages of Antpool are that you can choose the method of calculating the remuneration – PPLNS (0% commission) or PPS (2.5% commission) (each method has its own advantages).
Payments are made once a day, the threshold is set at 0.001 BTC.
Beginners will love the simple and intuitive interface. Control panel displays income and hash rate, you can configure security settings, including two-step authorization, email alerts and wallet lock. Universal recognition and a rich history make Antpool one of the best options for novice bitcoin miners.
Pros: You can choose the method of calculating the remuneration (PPLNS or PPS).
Convenient and intuitive interface.
Ability to change security settings.
Cons: Pay less due to the large size of the pool
Asik is not always connected to the pool and therefore there may be significant downtime for your equipment.
An example of an error that many pool users mention : Tonight, the ASIC crashed and stopped working properly. It starts, it works colder, the chips light up, but the state is zero and after a while the chips go out. I installed the firmware at a power of 600, I showed “Connection to socket failed: Connection refused”, can anyone have this?
If you see that your ASIC is working and there is no information in the miner state, then in most cases it is enough to switch to another pool, and the ASIC will work again as usual.
F2POOL REVIEWS AND REVIEWS
The Chinese pool F2Pool was opened in 2013. Currently, its share in the computing power of the network is 9.4%. The group uses the PPS method to calculate rewards, but the commission is quite high – 4%.
In addition to bitcoin, F2Pool is mining lightcoin (Litecoin), ether (Ethereum), and Zcash (ZEC). Payments are made daily when a threshold of 0.001 BTC is reached.
Unlike other Chinese pools, F2Pool has an English interface. The information is presented in a simple and concise manner, which makes it a particularly suitable option for beginners.
Pros: Possibility to mine BTC, LTC, ETH, and ZEC.
Very low threshold.
Cons: The Commission (4%) is higher than in most other groups.