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.
1070 ethereum Modified 'rat poison' systems are being funded by Wall Street alliances and venture capital dollars from prominent firms like Andreessen-Horowitz, despite the two points above. $6.3B was raised in token offerings in Q1 2018 alone. Facebook and Google both have blockchain divisions. акции ethereum ethereum raiden займ bitcoin login bitcoin скрипты bitcoin wallet cryptocurrency bitcoin utopia bitcoin кредит cranes bitcoin coins bitcoin кран bitcoin обменник bitcoin биржи bitcoin attack bitcoin краны ethereum Fortunately, it's easier to define what Bitcoin actually is. It's software. Don't be fooled by stock images of shiny coins emblazoned with modified Thai baht symbols. Bitcoin is a purely digital phenomenon, a set of protocols and processes.hacking bitcoin bitcoin магазин ethereum online cannot be devalued by arbitrary monetary policy decisions, and that they will always bebitcoin xbt эфир bitcoin bitcoin падает ethereum перевод bitcoin play
bitcoin capitalization
bitcoin cc bitcoin central stock bitcoin bitcoin trinity bitcoin рубли bitcoin терминалы client bitcoin bitcoin analytics отзыв bitcoin 3 bitcoin Such a contract would have significant potential in crypto-commerce. One of the main problems cited about cryptocurrency is the fact that it's volatile; although many users and merchants may want the security and convenience of dealing with cryptographic assets, they may not wish to face that prospect of losing 23% of the value of their funds in a single day. Up until now, the most commonly proposed solution has been issuer-backed assets; the idea is that an issuer creates a sub-currency in which they have the right to issue and revoke units, and provide one unit of the currency to anyone who provides them (offline) with one unit of a specified underlying asset (eg. gold, USD). The issuer then promises to provide one unit of the underlying asset to anyone who sends back one unit of the crypto-asset. This mechanism allows any non-cryptographic asset to be 'uplifted' into a cryptographic asset, provided that the issuer can be trusted.monero обмен ethereum habrahabr bitcoin hyip transactions bitcoin карты bitcoin системе bitcoin
bitcoin переводчик
bitcoin магазины best bitcoin purchase bitcoin ethereum addresses bitcoin block simple bitcoin bitcoin official
bounty bitcoin local bitcoin bitcoin сборщик ethereum dark testnet bitcoin bitcoin деньги bitcoin com abi ethereum
bitcoin json txid bitcoin machine bitcoin калькулятор monero bitcoin видеокарты bitcoin минфин доходность bitcoin
bitcoin обои сайты bitcoin bitcoin mine site bitcoin bitcoin favicon bitcoin testnet адрес bitcoin bitcoin de usb tether icons bitcoin bitcoin javascript bitcoin 10 bitcoin widget bitcoin хардфорк bitcoin 2020 monero кран ethereum script bitcoin freebie monero pro bitcoin мошенничество bitcoin скачать
coffee bitcoin
maps bitcoin by bitcoin bitcoin instaforex Litecoin has since proven a valuable test ground for more experimental cryptocurrency features.ethereum клиент bitfenix bitcoin зарабатывать bitcoin mining bitcoin 0 bitcoin site bitcoin gift bitcoin ethereum конвертер bitcoin автосерфинг бесплатные bitcoin difficulty bitcoin bitcoin visa обмена bitcoin
scrypt bitcoin видеокарты bitcoin bitcoin life bitcoin alien bitcoin airbit bitcoin coinmarketcap bitcoin china world bitcoin bitcoin приложения byzantium ethereum monero minergate ethereum clix
bitcoin кредит double bitcoin bubble bitcoin bitcoin greenaddress ethereum биткоин использование bitcoin кошелька ethereum bitcoin таблица bitcoin приложение bitcoin надежность geth ethereum total cryptocurrency bitcoin wiki алгоритм bitcoin
status bitcoin bitcoin wmx monero blockchain монета ethereum bitcoin рубль bitcoin ads bitcoin автоматически doubler bitcoin monero calculator bitcoin get hub bitcoin hub bitcoin testnet ethereum ethereum developer смесители bitcoin bitcoin 0 cryptocurrency tech accept bitcoin bitcoin бизнес bitcoin цены
проекта ethereum bitcoin weekly bitcoin заработок geth ethereum secp256k1 ethereum ethereum free bag bitcoin multi bitcoin monero usd 2018 bitcoin 1 monero ethereum 2017 ethereum myetherwallet usb bitcoin bitcoin yen кран bitcoin пул monero
bitcoin видеокарты bitcoin портал bitcoin electrum bitcoin new bitcoin trojan cryptocurrency tech electrum ethereum monero курс explorer ethereum bitcoin вконтакте neo bitcoin bitcoin change
bitcoin алгоритмы bitcoin hacker secp256k1 ethereum bitcoin china bitcoin мошенники анонимность bitcoin сайте bitcoin bitcoin purchase ethereum calc bitcoin crash bitcoin plugin bitcoin map
bitcoin knots blacktrail bitcoin bitcoin stiller daemon monero ethereum microsoft monero cpuminer monero пул
bitcoin trend bitcoin motherboard The larger the block size limit, the more transactions it can hold. So now you know what a block is, what about the chain?сбербанк bitcoin
ethereum complexity bitcoin fpga ethereum io cryptocurrency calendar usb bitcoin bitcoin gadget mmm bitcoin nicehash bitcoin
half bitcoin analysis bitcoin tether io стоимость monero ethereum котировки bitcoin value bitcoin получить ethereum forks How did it all begin?bitcoin multisig автомат bitcoin wallets cryptocurrency bitcoin icons s bitcoin ethereum stratum bitcoin выиграть eos cryptocurrency
bitcoin автосерфинг
nodes bitcoin dash cryptocurrency
1000 bitcoin bitcoin купить flash bitcoin bit bitcoin fields bitcoin bitcoin обменять ethereum price bitcoin баланс bitcoin кошелек bitcoin акции bitcoin комиссия прогноз ethereum bitcoin usb zebra bitcoin fpga ethereum my ethereum ethereum clix pokerstars bitcoin bitcoin конвертер bitcoin оборудование dollar bitcoin Bitcoin Mining Hardware: How to Choose the Best Onebitcoin android bitcoin protocol обменник ethereum
999 bitcoin polkadot cadaver автосерфинг bitcoin пузырь bitcoin cryptocurrency bitcoin анализ bitcoin bitcoin world carding bitcoin cryptocurrency bitcoin криптовалюты bitcoin bitcoin c bitcoin количество fpga bitcoin bitcoin passphrase bitcoin завести bitcoin collector make bitcoin monero сложность webmoney bitcoin bitcoin хайпы cryptonator ethereum bitcoin dance bitcoin conf l bitcoin ethereum логотип bitcoin department frontier ethereum ethereum php ethereum poloniex blacktrail bitcoin chaindata ethereum car bitcoin torrent bitcoin майнинга bitcoin новые bitcoin kinolix bitcoin bitcoin растет bitcoin magazine bitcoin россия agario bitcoin технология bitcoin
bitcoin key bitcoin news bitcoin msigna bitcoin send 16 bitcoin avto bitcoin monero proxy bitcoin 2018 нода ethereum bitcoin список описание bitcoin cryptocurrency dash simple bitcoin bitcoin exchanges cryptocurrency arbitrage decred cryptocurrency rotator bitcoin nicehash monero bitcoin online ethereum info sell bitcoin wifi tether bitcoin ubuntu clame bitcoin Before we finish our guide to cryptocurrency, let’s answer one more question.bitcoin address bitcoin кредиты day bitcoin bitcoin карты
fenix bitcoin биржа ethereum mikrotik bitcoin bitcoin avalon bitcoin global minecraft bitcoin bitcoin slots drip bitcoin stats ethereum bitcoin data bitcoin it
ethereum btc ethereum alliance bitcoin koshelek серфинг bitcoin 999 bitcoin tether майнить planet bitcoin price bitcoin биржа bitcoin bitcoin книга ethereum rotator bitcoin расшифровка bitcoin green ethereum сложность 4000 bitcoin bitcoin poloniex bitcoin hub ферма bitcoin production cryptocurrency bitcoin talk bitcoin future bitcoin loans inside bitcoin stealer bitcoin rpg bitcoin forecast bitcoin bitcoin statistics добыча bitcoin ethereum прогноз currency bitcoin bitcoin atm форки ethereum The total market capitalization of gold is estimated to be over $10 trillion. Could Bitcoin reach 10% of that? 25%? Half? Parity? I don’t know.bitcoin спекуляция bitcoin конвектор
bitcoin balance sberbank bitcoin bitcoin развод ethereum os stats ethereum monero криптовалюта bitcoin магазин bitcoin accepted clicks bitcoin
конвертер ethereum bitcoin отслеживание bitcoin транзакции game bitcoin keystore ethereum
bitcoin клиент ru bitcoin bitcoin desk обменять bitcoin bitcoin trojan bitcoin куплю bitcoin location bitcoin timer SAVE 21%bitcoin bear bitcoin scripting icon bitcoin
roll bitcoin bitcoin service oil bitcoin coin bitcoin mt5 bitcoin ethereum testnet bitcoin laundering
ethereum foundation bitcoin 1000 nanopool ethereum ethereum russia buy ethereum работа bitcoin dog bitcoin bitcoin fake ethereum vk monero minergate bitcoin config mikrotik bitcoin bitcoin converter bitcoin nvidia While miners construct, solve and propose blocks and while nodes check and validate work performed by miners, private keys control access to the unit of value itself. Private keys control the rights to the 21 million bitcoin (technically only 18.0 million have been mined to date). In bitcoin, there are no identities; bitcoin knows nothing of the outside world. The bitcoin network validates signatures and keys. That is all. Only someone in control of a private key can create a valid bitcoin transaction by creating a valid signature. Valid transactions are included in blocks, which are solved by miners and validated by each node, but only those in possession of private keys can produce valid transactions.проблемы bitcoin эпоха ethereum neteller bitcoin flex bitcoin ethereum microsoft bitcoin development кости bitcoin cryptocurrency bitcoin
запрет bitcoin airbit bitcoin
bitcoin alliance подтверждение bitcoin withdraw bitcoin
пример bitcoin bitcoin payeer настройка monero bitcoin банк bitcoin daily проекта ethereum bitcoin ethereum simplewallet monero
click bitcoin ethereum info ethereum swarm bitcoin half bitcoin минфин dag ethereum bitcoin биржи 1 ethereum
лото bitcoin стоимость monero agario bitcoin auto bitcoin Mining is intensive, requiring big, expensive rigs and a lot of electricity to power them. And it's competitive. There's no telling what nonce will work, so the goal is to plow through them as quickly as possible.bitcoin анализ терминалы bitcoin
zcash bitcoin ethereum падение bitcoin транзакции x bitcoin cpuminer monero wisdom bitcoin блок bitcoin bitcoin spinner connect bitcoin развод bitcoin ethereum org bitcoin зарабатывать china bitcoin bitcoin рейтинг бесплатно bitcoin капитализация ethereum
connect bitcoin bitcoin генератор bitcoin habrahabr
pos bitcoin bitcoin fpga casino bitcoin bitcoin nodes развод bitcoin vk bitcoin why cryptocurrency ethereum io monero новости bitcoin лохотрон nicehash bitcoin
кошелька bitcoin bitcoin перевести
china cryptocurrency ethereum регистрация ethereum котировки bitcoin supernova ethereum
bitcoin blue bitcoin карты Ledger Nano X Reviewпрограмма tether 12. Conclusion