At present, as the number of mining pools increases and the difficulty escalates, how to choose a mining pool that is good, stable and has guaranteed income? I believe this is a complex problem faced by the majority of mining farms and Bitcoin miners.
What is a Bitcoin mining pool?
Since there are more and more Bitcoin mining people on the global network, but the daily output of Bitcoin is fixed, if an individual wants to mining a block, the probability can be comparable to winning the lottery, so everyone will gather together, and thus the mining pool is produced. The mining pool is a grouping behavior of gathering the hash rate of the miners on the network to mine Bitcoin. It forms a team of miners and directs everyone to mining together. Once anyone in the team obtains a block, the pool will be divided into zones. Then, the currency obtained in the block is distributed to everyone.
The mining pool industry has developed rapidly during the year, and the solo hash rate that is not in the mining pool has been compressed to only about 10%. Of course, this is related to the rapid increase in the hash rate of the entire network. The difficulty of mining is rapidly increasing. It is difficult to dig a block by yourself without a mining pool. The development of mining is an inevitable trend under the increase of hash rate.
How many coins can the mining pool be mining every day? When will the coins be mining finish?
Obtain information from the blockchain and let the mining machines under the mining pool perform calculations. Bitcoin can report a block every about 10 minutes, and a block can mine about 25 BTC. Thus, the blockchain can generate about 144 blocks a day Block. Theoretically, about 3,600 bitcoins can be produced per day, and currently, about 13.6 million bitcoins are produced. According to the halving of bitcoin production every four years, all bitcoins can be mining finish in about 2140.
How does the mining pool operate?
At present, mainstream mining pools are mainly divided into two modes: PPLNS and PPS:
PPLNS model: The income is paid based on the past N shares. Once all miners discover a block, everyone will allocate the currency in the block according to the proportion of the number of shares contributed by each person. In PPLNS, Under the model, if the mining pool can find many blocks in a day, then everyone will pay more dividends. If the mining pool fails to find a block in a day, everyone will have no income. The current hash rate of the entire network is about 300P. If the mining pool has 50% of the hash rate, every time a block is calculated, there is a 50% chance of obtaining 25 BTC of this block, so this model is also risky. Everyone needs to be careful when choosing!
PPS mode: This method pays for each share, pays more and gains more, according to the proportion of your hash rate in the mining pool, and estimates the minerals that the mining pool can obtain every day. In the case of the same difficulty of the Bitcoin system, your daily income remains the same. The PPS model requires a fee, which is generally 2%-5%. When the mining pool cannot dig a block, the mining pool will balance the revenue and expenditure, reducing the risk of the mining pool.
There is also the SOLO mode: you can choose the SOLO mode and get all block rewards if you have enough hash rate. Antpool provides SOLO mode mining.
How to choose a mining pool correctly?
In summary, if you have a 1T-50T hash rate, you can choose a mining pool with PPS allocation mode. If you have a 50T-500T hash rate, you can choose a mining pool with PPLNS allocation mode. Finally, if you have a 1P or more hash rate, you can choose a mining pool in the SOLO allocation mode. In short, we try to choose a large hash rate mining pool.