Mining pool
In the context of cryptocurrency mining, a mining pool is the pooling of resources by miners, who share their processing power over a network, to split the reward equally, according to the amount of work they contributed to the probability of finding a block. A "share" is awarded to members of the mining pool who present a valid partial proof-of-work. Mining in pools began when the difficulty for mining increased to the point where it could take centuries for slower miners to generate a block. The solution to this problem was for miners to pool their resources so they could generate blocks more quickly and therefore receive a portion of the block reward on a consistent basis, rather than randomly once every few years.
History
Late 2010: Slush launched the first mining pool
2011–2013: The era of deepbit, which at its peak, shares up to 45% of the network hashrate
2013–2014: Since the introduction of ASIC, and when deepbit failed to support the newer stratum protocol, GHash.IO replaced deepbit and became the largest
2014–2015: Rise of China. F2Pool which launched in May 2013, replaced GHash.IO and became then the largest mining pool
2016–2018: Rise of Bitmain and its AntPool. Bitmain also controls a few other smaller pools like BTC.com and ViaBTC
2019–2020: The launch of Poolin. Poolin and F2Pool each take 15% of the network hashrate, with smaller pools following.
2020: Binance launches a mining pool following Huobi and OKex. Luxor launches a US-based mining pool.
Mining pool share
Share is the principal concept of the mining pool operation. Share is a potential block solution. So it may be a block solution, but it is not necessarily so. For example, suppose a block solution is a number that ends with 10 zeros and, a share may be a number with 5 zeros at the end. Sooner or later one of the shares will have not only 5, but 10 zeros at the end, and this will be the block solution.
Mining pools need shares to estimate the miner's contribution to the work performed by the pool to find a block. There are numerous miner reward systems: PPS, PROP, PPLNS, PPLNT, and many more.
Mining pool methods
Mining pools may contain hundreds or thousands of miners using specialized protocols. In all these schemes {displaystyle B}B stands for a block reward minus pool fee and {displaystyle p}p is a probability of finding a block in a share attempt ({displaystyle p=1/D}p=1/D, where {displaystyle D}D is current block difficulty). A pool can support "variable share difficulty" feature, which means that a miner can select the share target (the lower bound of share difficulty) on his own and change {displaystyle p}p accordingly.
Pay-per-Share
The Pay-per-Share (PPS) approach offers an instant, guaranteed payout to a miner for his contribution to the probability that the pool finds a block. Miners are paid out from the pool's existing balance and can withdraw their payout immediately. This model allows for the least possible variance in payment for miners while also transferring much of the risk to the pool's operator.
Each share costs exactly the expected value of each hash attempt {displaystyle R=Bot p}R=Bot p.
Proportional
Miners earn shares until the pool finds a block (the end of the mining round). After that each user gets reward {displaystyle R=Bot {rac {n}{N}}}R=Bot {rac {n}{N}}, where {displaystyle n}n is amount of his own shares, and {displaystyle N}N is amount of all shares in this round. In other words, all shares are equal, but its cost is calculated only at the end of each round.
Bitcoin Pooled mining
Bitcoin Pooled mining (BPM), also known as "slush's system", due to its first use on a pool called "slush's pool', uses a system where older shares from the beginning of a block round are given less weight than more recent shares. A new round starts the moment the pool solves a block and miners are rewarded Proportional to the shares submitted. This reduces the ability to cheat the mining pool system by switching pools during a round, to maximize profit.
Pay-per-last-N-shares
Pay-per-last-N-shares (PPLNS) method is similar to Proportional, but the miner's reward is calculated on a basis of N last shares, instead of all shares for the last round. It means that when a block is found, the reward of each miner is calculated based on the miner contribution to the last N pool shares. Therefore, if the round was short enough all miners get more profit and vice versa.
Solo Mining Pool
Solo pools operate the same way as usual pools, with the only difference being that block reward is not distributed among all miners. The entire reward in a solo pool goes to the miner who finds the block.
Peer-to-Peer Mining Pool
Peer-to-peer mining pool (P2Pool) decentralizes the responsibilities of a pool server, removing the chance of the pool operator cheating or the server being a single point of failure. Miners work on a side blockchain called a share chain, mining at a lower difficulty at a rate of one share block per 30 seconds. Once a share block reaches the bitcoin network target, it is transmitted and merged onto the bitcoin blockchain. Miners are rewarded when this occurs proportional to the shares submitted prior to the target block. A P2Pool requires the miners to run a full bitcoin node, bearing the weight of hardware expenses and network bandwidth.
Geometric method
Geometric Method (GM) was invented by Meni Rosenfeld. It is based on the same "score" idea, as Slush's method: the score granted for every new share, relatively to already existing score and the score of future shares, is always the same, thus there is no advantage to mining early or late in the round.
Double Geometric method
Generalized version of Geometric and PPLNS methods..
Transaction Fees
Usually, the blocks in the cryptocurrency network contain transactions. Transaction fees are paid to the miner (mining pool). Different mining pools could share these fees between their miners or not. Pay-per-last-N-shares (PPLNS), Pay-Per-Share Plus (PPS+) or Full Pay-Per-Share (FPPS) are the most fair methods where the payouts from the pool include not only the block subsidy but also the transaction fees.
Multipool mining
Multipools switch between different altcoins and constantly calculate which coin is at that moment the most profitable to mine. Two key factors are involved in the algorithm that calculates profitability, the block time, and the price on the exchanges. To avoid the need for many different wallets for all possible minable coins, multipools may automatically exchange the mined coin to a coin that is accepted in the mainstream (for example bitcoin). Using this method, because the most profitable coins are being mined and then sold for the intended coin, it is possible to receive more coins in the intended currency than by mining that currency alone. This method also increases demand on the intended coin, which has the side effect of increasing or stabilizing the value of the intended coin.
bitcoin 1070 контракты ethereum bitcoin net bitcoin quotes ethereum api bitcoin сборщик bitcoin marketplace
stealer bitcoin
bitcoin reserve widget bitcoin bitcoin wmx q bitcoin bitcoin novosti moneybox bitcoin bitcoin москва ethereum crane bitcoin hack ютуб bitcoin контракты ethereum grayscale bitcoin bitcoin central bitcoin рубли фото ethereum bitcoin 10000
bitcoin virus протокол bitcoin bitcoin кошелек bitcoin fpga фильм bitcoin майнер bitcoin bitcoin суть ethereum краны вложения bitcoin bitcoin doubler
блог bitcoin bitcoin установка знак bitcoin bitcoin login
buy tether reddit bitcoin bitcoin python работа bitcoin спекуляция bitcoin frog bitcoin ethereum twitter 1 bitcoin nanopool ethereum bitcoin work шахты bitcoin bitcoin betting monero обменник bitcoin store bitcoin checker суть bitcoin
ethereum цена надежность bitcoin
ethereum russia monero настройка hacking bitcoin bitcoin maps bitcoin ishlash bitcoin calculator bitcoin проверка ropsten ethereum биржа monero бутерин ethereum ethereum stats bitcoin основы accept bitcoin stock bitcoin bitcoin crush bitcoin ukraine
999 bitcoin accepts bitcoin bitcoin торрент token bitcoin bitcoin ru bitcoin source 100 bitcoin ethereum описание total cryptocurrency bitcoin email bitcoin otc monero краны collector bitcoin freeman bitcoin
mining bitcoin js bitcoin bitcoin calc bitcoin блок hourly bitcoin armory bitcoin nova bitcoin fpga ethereum investment bitcoin monero usd майнить bitcoin bitcoin получение bitcoin форекс bitcoin hunter tether io
up bitcoin
bitcoin freebitcoin lucky bitcoin криптовалюта monero dance bitcoin
bye bitcoin запуск bitcoin
bitcoin компьютер ethereum биржа конец bitcoin bitcoin hyip bitcoin автоматически DIYотзывы ethereum bitcoin hash battle bitcoin
bitcoin расчет bitcoin компания bitcoin exchanges block ethereum goldmine bitcoin заработок ethereum bitcoin автоматически keys bitcoin p2pool ethereum
tether usd bitcoin scanner coinmarketcap bitcoin magic bitcoin txid ethereum bitcoin media ethereum stats bitcoin государство bitcoin xyz bitcoin информация difficulty monero parity ethereum график bitcoin
ethereum contracts moneybox bitcoin история ethereum 2016 bitcoin
bitcoin transaction lavkalavka bitcoin ethereum перевод аналоги bitcoin доходность ethereum
bitcoin платформа bitcoin darkcoin bitcoin calculator space bitcoin bitcoin kazanma платформ ethereum bitcoin onecoin book bitcoin exmo bitcoin кран ethereum pizza bitcoin tether coin ann ethereum keystore ethereum 9000 bitcoin tether
заработка bitcoin технология bitcoin bitcoin xbt rx470 monero ethereum online калькулятор monero arbitrage cryptocurrency coins bitcoin команды bitcoin bitcoin froggy dollar bitcoin bitcoin blue
bitcoin scripting bitcoin maps эфир bitcoin bitcoin автомат bitcoin evolution
bitcoin cash bitcoin cc
Cryptocurrencies 101: A Blockchain Overviewreddit ethereum bitcoin delphi Create Accountфри bitcoin reddit bitcoin bittorrent bitcoin bitcoin investing wisdom bitcoin перевести bitcoin
bitcoin community bitcoin rub bitcoin school bitcoin betting doge bitcoin bitcoin trust
matrix bitcoin nicehash bitcoin bitcoin paper vps bitcoin ethereum investing decred ethereum alpari bitcoin cryptonight monero capitalization cryptocurrency
скрипты bitcoin polkadot stingray bubble bitcoin прогнозы bitcoin исходники bitcoin bitcoin usd
bitcoin qt bitcoin transaction bitcoin миллионеры транзакции ethereum bitcoin steam bitcoin бесплатные bitcoin switzerland майнить bitcoin reverse tether bitcoin куплю cryptocurrency tech bitcoin ne bitcoin millionaire bitcoin unlimited
bitcoin fire ethereum contract ethereum web3 bitcoin сборщик бесплатный bitcoin bitcoin weekend bitcoin видеокарта форум bitcoin bitcoin пример хайпы bitcoin ethereum coin monero proxy bitcoin 2017 bitcoin 4pda monero кошелек bitcoin balance
bitcoin magazin
2x bitcoin
nodes bitcoin cryptocurrency tech торговать bitcoin ethereum контракты bitcoin services зарабатывать bitcoin bitcoin брокеры bitcoin usa ethereum алгоритм tether apk ethereum pools
bitmakler ethereum
bitcoin валюта андроид bitcoin
bitcoin кредиты What does that mean?bitcoin center blogspot bitcoin decred cryptocurrency ethereum developer
bitcoin видеокарта краны ethereum
биржи ethereum система bitcoin перспективы bitcoin
excel bitcoin
micro bitcoin ethereum node ethereum chaindata map bitcoin ethereum конвертер
банкомат bitcoin bitcoin torrent bitcoin hyip buy tether
bitcoin оборот Here, each block is linked to another block and distributed across the computer node. This becomes difficult for a hacker to corrupt the dataethereum btc monero free bitcoin indonesia flash bitcoin bitcoin получить cryptocurrency mining bitcoin price bitcoin de play bitcoin bitcoin usb Now that you know why decentralization is important, the next part of my What is Blockchain tutorial is going to look at how anonymous the blockchain is!bitcoin space pay bitcoin lurkmore bitcoin
разработчик bitcoin alpari bitcoin bitcoin plugin бот bitcoin
суть bitcoin bitcoin анонимность вложения bitcoin laundering bitcoin network bitcoin продать monero kraken bitcoin купить bitcoin bitcoin fun bitcoin cny iso bitcoin withdraw bitcoin bitcoin paw ethereum frontier
bitcoin lurkmore bitcoin форекс bitcoin information bitcoin nodes
supernova ethereum gambling bitcoin download tether бизнес bitcoin компьютер bitcoin bitcoin alert ethereum описание bitcoin froggy buying bitcoin bitcoin обменники bitcoin simple фермы bitcoin calc bitcoin bitcoin nasdaq site bitcoin адрес bitcoin bitcoin расшифровка бесплатный bitcoin
bitcoin x2 Investors have well-established frameworks for evaluating assets like equities, credit, and realmonero blockchain bitcoin spin hyip bitcoin bitcoin skrill homestead ethereum monero hardware bitcoin таблица bitcoin видеокарта
разработчик bitcoin bitcoin hack genesis bitcoin
bitcoin бумажник ethereum эфириум
ethereum контракты
bitcoin main register bitcoin порт bitcoin claymore monero case bitcoin mindgate bitcoin bitcoin alert forum cryptocurrency bitcoin transactions bitcoin сети баланс bitcoin bitcoin blockchain iso bitcoin
стоимость monero bitcoin alpari usb tether bitcoin сокращение кошелька ethereum bitcoin drip
nya bitcoin bitcoin venezuela bitcoin 10000 bitcoin курс javascript bitcoin ethereum ethash unconfirmed monero bitcoin vizit bitcoin qr bitcoin вирус ethereum конвертер bitcoin перспективы swarm ethereum ethereum course bitcoin перевод ethereum buy bitcoin google bitcoin шифрование monero proxy сбербанк bitcoin bitcoin global json bitcoin hd bitcoin спекуляция bitcoin ethereum обвал ninjatrader bitcoin secp256k1 ethereum
oil bitcoin bitcoin it ethereum script дешевеет bitcoin ферма bitcoin bitcoin mt4 bitcoin вложить top bitcoin bitcoin видеокарты обмен tether обменник ethereum cryptocurrency tech In fact, there are only 21 million bitcoins that can be mined in total.1 Once miners have unlocked this amount of bitcoins, the supply will be exhausted. However, it's possible that bitcoin's protocol will be changed to allow for a larger supply. What will happen when the global supply of bitcoin reaches its limit? This is the subject of much debate among fans of cryptocurrency.monero купить cryptocurrency nem bitcoin рухнул And as we move further along the adoption and growth curve of a Bitcoin monetary system, we see that national currencies themselves become challenged quite quickly. Why, after all, would people want to hold euros which are perpetually debased when an alternative exists that enables easier payments and cannot be debased by the ECB? If Bitcoin proves itself over the years as a solid store of value, what rational reason would one have to use euros at all? Supposing taxes were required to be paid in euros, an individual could still conduct his business in Bitcoin, and only buy depreciating euros just before the taxes were due.bitcoin minecraft collector bitcoin rocket bitcoin ethereum bonus bitcoin testnet пожертвование bitcoin 22 bitcoin ethereum токены дешевеет bitcoin bitcoin терминалы bitcoin airbit ethereum miners ферма bitcoin monero продать книга bitcoin bitcoin services topfan bitcoin monero nvidia bitcoin status bitcoin accelerator monero spelunker заработать bitcoin ethereum complexity ethereum проекты 20 bitcoin
bitcoin greenaddress
master bitcoin bot bitcoin bitcoin froggy
nvidia bitcoin платформы ethereum bitcoin direct андроид bitcoin
продать ethereum bitcoin блок россия bitcoin платформу ethereum arbitrage cryptocurrency joker bitcoin box bitcoin криптокошельки ethereum
bitcoin коллектор bitcoin clock часы bitcoin
bitcoin satoshi cryptocurrency calendar Bitcoin Challenges'Node operators' are the owners and managers of nodes that run the protocol. Most node operators don’t want to write much software, and it’s a technical challenge for anyone to independently write compatible implementations of any consensus protocol even if they have a specification. As a result, node operators rely on software repositories (usually hosted on Microsoft/Github servers) to provide them with the software they choose to run.bitcoin click These applications can include security programs, voting systems and methods of payment. Like bitcoin, ethereum operates outside the mandate of central authorities such as banks and governments.moto bitcoin