With the rise in popularity of Bitcoin and digital aspirations in general, users' interest in these cherished aspirations has seen a significant growth in value. On the other hand, with the intensification of the competition for extraction, this process became more and more difficult day by day. Now, the difficulty to solve has reached a point where someone with powerful Isic devices is probably near zero, and miners have a way to make a profit other than receiving Crypto VIP Signal joining deletion pools.
Pools are teams of digital miners who share processing power and block output by decision. Thus, a teamwork and cooperation are formed where the block payments are distributed naturally among the pool members. In fact, the more processing power you provide to the pool, the better it will end up being for getting Futures Signal.
In this article, we will first examine the concept of mining pools and their purpose, and then we will learn about the different methods of pools to pay their users, and finally, we will introduce the best Bitcoin pools. So, stay with us until the end of the article.
A mining pool is a virtual mining pool where miners gather and search to mine a block.
What is a pool?
A mining pool is a virtual mining pool where miners gather and search to mine a block. In fact, small miners put the processing power at the disposal of their pool and extract from all of them participate in the mining process and get the production and according to each miner's share of the total power of the pool, he divides the reward among them.
What is mining pool or mining pool?
The pool allows miners to try their luck to receive the booster. In the early months of Bitcoin's launch, miners could individually and directly choose blocks with different choices. But now, with the expansion of the Bitcoin network, the probability of the block and achieving its profit for smaller miners is zero.
This issue is related to a factor called "mining difficulty". The important difficulty is that as the number of miners and processing power of the hardware in the entire network increases, solving complex mathematical equations to create a blocker is created. This feature is built in order to regulate the Bitcoin production process and prevent its inflation.
The increasing popularity of Bitcoin causes the network difficulty of this digital currency to increase greatly. In other words, the number of Bitcoin miners continuously increases with the passage of time and the increase in processing power causes the hard resources to increase along with it. As a result, today we have reached the point where personal mining is practically inefficient and obsolete.
It is interesting to know that even large mining farms with machines join mining pools to generate bitcoins. With the increasing difficulty of the network and the existence of initial and ongoing costs for Bitcoin, if you try to digitize without joining a pool, not only will you not make a profit. But it will harm.
Payment methods of mining pools
Interest payment methods can be different in each pool. In the following, we explain the methods that large pools use to divide mining profits among their users; But before that, let's learn more about the concept of shares in pools.
Shares are units that help pool owners to calculate and pay each miner's reward according to their computing power and sometimes even for the length of time the miner has joined the pool. In other words, miners receive shares based on their processing power in solving the puzzle of a block. Finally, the pool pays each miner according to the amount of stake he has received. Based on the share amount, the pool payment can have different forms, which we will explain below.
Pay Per Share (PPS)
This payment method is very simple. In the Pay per Share (PPS) method, the mining pool determines a share for the user according to the amount of computing power that the user provides to the network. Miners are ultimately rewarded for the take they hold.
The pay-per-share system allows miners to receive their share of the reward during their participation, regardless of whether a block is mined or not, and how the pool's income was that day. In this payment system, the pool operators pay the miners' share from their balance anyway. The newer version of this method is called PPS+ or Full Pay-Per-Share. This method is similar to PPS, except that the transaction fee is also included in the block.
Proportional payment
In this method, similar to the previous method, the more computing power you provide to the pool, the more shares you will receive; but the difference with PPS is that you will be rewarded only if the block is mined. In this method, as soon as the block is created, the pool pays miners according to their stake.
In the proportional payment method, the amount you receive per share is equal to the block reward divided by the total number of shares offered by all miners. This means that the more miners that join the pool, the lower the value of the share you receive; but instead, the probability of creating a block will also increase.
The pool allows miners to try their luck to receive the booster.
Pay Per Last N Shares (PPLNS)
Pay-Per-Last N Share (PPLNS) system also rewards miners only when the pool can mine the block. In this method, there is something called "Time Window" which is predefined and ends with the extraction of the time block. Miners are only rewarded for their stake during this time window, or in other words, for the processing power they have made available to the pool during this time.
Unlike other payment methods, shares received outside this window will not be rewarded. Of course, we must mention that this window can be a time frame such as the time required to extract a block or a specific number such as N, which represents the last shares received until the block is solved.
For example, if N is equal to one billion, after the block is created, only the last one billion shares that joined the block mining process will be rewarded. Although the value of N is not explicitly specified anywhere, it is usually a fixed factor (usually 2) of the difficulty of mining the pool.
PPLNS is also called "pay-for-chance"; because with the correct implementation of this method, miners cannot predict the correct time to join the pool. With the PPLNS method, miners get more rewards if they have received more shares in the last N shares, and if not, they may not even receive anything.
Score-Based
This payment method is designed to prevent miners from constantly changing the pool. The time you join mining and the hash power you provide to the pool is calculated as a score called "Hash Rate Score". The longer you stay in a pool, the higher your score will be and, as a result, the value of your shares will increase.
Not to mention, when you stop mining, your score will be lower and your share value will decrease accordingly. In this payment method, miners receive a reward after mining a block.
The payment methods we mentioned were common methods used by most mining pools. However, bonus distribution methods are not limited to these and there are other types, which we will mention below.
One such method is called "Maximum Payment Per Share" (SMPPS). This method is also similar to PPS; but it limits the payout to the maximum bonus that the pool has earned.
"Maximum shared payout per share" (ESMPPS) is a similar method to SMPPS, except that it distributes the payout equally among all miners in the mining pool.
Other common payment methods include "current maximum payment per subscription" (RSMPPS). This method is similar to the SMPPS method, except that it prioritizes new miners.
Other methods we can mention are: Double Geometric Method (DGM) (combination of geometric reward types and PPLNS) and Pay per Subscription Reward (CPPSRB) and Bitcoin Pooled Mining (BPM).
Before deciding to join a particular pool, miners should pay attention to how each pool's rewards are distributed among its members and its fees. Usually, pools may charge between 1% and 3% as pool fee from miners.
Best Bitcoin Mining Pools
So far, we talked about the methods of calculating and offering rewards to miners in different pools. In this part of the article, we are going to take a look at the best Bitcoin mining pools and review them.
AntPool
Entpool is one of the famous digital currency mining pools. The mentioned pool was created in China and at the time of writing this article, more than 16% of Bitcoin blocks are mined in it.
Antpool mined the first Bitcoin block in March 2014. This pool was launched almost four years after the creation of the first mining pool, the Slush Pool. Needless to say, Bitmain, the world's largest producer of Bitcoin mining hardware and Antminer, manages this pool.
Entpool falls into the category of large mining pools, and despite its rather clunky user interface, it is a safe and profitable choice for mining. Another point is that joining this pool is free and is a simple process.
The structure and payout percentage of Entpool pool is very different depending on the digital currency you mine in the pool. One of the advantages of Entpool is that you can choose between PPLNS (with zero percent fee) and PPS+ (with 4% block reward fee and 2% mining fee) payment methods.
This pool provides users with security considerations including two-step authentication, wallet lock, and email alerts. In addition, the possibility of having multiple accounts at the same time is also active in this pool.
F2Pool
Ftopol was first launched in 2013 in Beijing; but as the pool grew in popularity, it didn't take long for it to spread to other continents. The service is now available in Russia, Canada, the United States and other countries. Today, F2Pool has become one of the largest Bitcoin mining pools by mining more than 11% of Bitcoin blocks.
The reward method of this pool is based on PPS + and it receives a 2.5% commission from its users. This amount is significant compared to other pools. The deposit of this pool is done automatically and daily and the minimum withdrawal is 0.005 bitcoins.
In addition to Bitcoin, FtPool miners can also mine Litecoin and Ethereum and several other digital currencies. In total, you can mine more than 40 Crypto Signal in this pool. Although the pool's website was originally created only for the Chinese market, the company now has an English version of its website and its user interface makes for a very easy experience for miners of all levels.
The Ftopol website uses the HTTPS protocol. The service is also equipped with a wallet lock feature that protects your funds in case your account is hacked. Just remember that you cannot replace the email address used for registration with another address; because this company has prohibited email replacement for security reasons and to prevent identity theft.
Slushpool
Slashpool is the first Bitcoin mining pool that started in 2010 and mined its first block in December 2010. This pool, which is managed by Satoshi Labs in the Czech Republic, has contributed to the mining of more than 1.2 million bitcoins.
At the same time, Satoshi Labs is also the creator of Trezor hardware wallet. In addition to the first offline Bitcoin wallet and the first Bitcoin-centric world map, the company created the Stratum mining protocol, which is now used by other pools.
The SlashPool pool is unique due to the use of its score-based reward method. This reward system can be considered as a solution to keep users and miners loyal. This pool charges a fee of 2% of every reward mined.
Before registering and logging into the system, Slashpool provides a test user account to miners so that they can fully understand the mechanism of this mining pool by using it. This feature can be very useful for novice miners. At the same time, Slash Pool is one of the favorite options of Iranian users, because due to the mechanism that this pool has, Iranian users can join it with minimal obstacles and trouble.
Slashpool's user interface is very user-friendly and provides useful information to users. This site continuously updates charts, information and news published on its social pages.
ViaBTC
Via BTC is a mining pool for Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ethereum Classic, ZCash, Dash, Monero and Bitmark. This pool is another well-known Chinese mining pool that was launched in 2016. Via BTC currently mines 7.5% of Bitcoin blocks and serves over 1 million customers in over 130 countries. Via BTC is not as big as AntPool and FtoPool; But in general, it is included in the category of well-known and popular pools.
Via BTC also provides the possibility of mixed mining for its users; In this way, Bitcoin Cash miners will receive free Syscoin and Litecoin miners will also receive Dogecoin. This mining pool offers 3 different payment methods: PPS, PPLNS, and SOLO, whose fee rate is 4% for the PPS method, 2% for the PPLNS method, and 1% for the SOLO method.
Poolin is another digital currency mining pool based in China that mines about 8% of all Bitcoin blocks.
Other pools
In addition to the mining pools we mentioned, pools such as BTC.com (BTC.com) are also among the prominent pools in this industry. Poolin is another digital currency mining pool based in China that mines about 8% of all Bitcoin blocks. BTC.com pool management is similar to Antpool with Bitmain; But reports indicate that this pool blocks the access of Iranian users at certain times.
Frequently asked questions
By reading this article, you must have understood what mining pools work and why joining these pools is important for miners. Also, you have learned about the types of bonuses in different pools and some examples of these pools. At the end of this article, we are going to answer some frequently asked questions related to mining pools. So, stay with us.
1. Why should we connect to a mining pool?
Because with the increasing popularity of the mining process with the help of high-speed devices, the possibility of making a profit through individual mining has decreased significantly and practically reached zero.
2. How to find out how much mining income is?
Profit from mining is one of the questions that are always in the minds of digital currency lovers. Using the mining calculator on this page, you can easily calculate the profitability of mining in any digital currency.
3. Is it possible to mine several different currencies at the same time in one pool?
Yes, simultaneous mining of independent digital currencies or merged mining is possible; of course, on the condition that they all follow the same consensus algorithm.
Conclusion
In this article, we said that the most important reason for miners to join the mining pool is to increase the probability of profitability. For example, you have a device with a processing power of 100 teraseconds to mine Bitcoin. If you're going to mine individually, you'll have to compete with people with a processing power of something like 150 million Terahs per second. Therefore, your chances of getting a block reward are almost zero.
Mining pools dramatically increase processing power by forming a team and participate in the mining process on behalf of everyone; therefore, they increase the probability of profit for each miner to a great extent.
AntPool, FtoPool, SlashPool, and Via BTC are the best current mining pools that we have thoroughly reviewed. Other pools, such as Polin, Slash Pool, and BTC.com, are also prominent pools that can be suitable choices based on the criteria of each miner. Therefore, if you plan to register in a mining pool, do not limit yourself to this article and definitely do the necessary research according to your conditions and criteria.
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