How to Choose a Cryptocurrency Mining Pool
FACEBOOK
TWITTER
LINKEDIN
By ADAM BARONE
Reviewed By JULIUS MANSA
Updated Jun 30, 2020
TABLE OF CONTENTS
EXPAND
What Is Cryptocurrency Mining?
Understanding Cryptocurrency Mining Pools
1. Infrastructure Compatibility
2. Task Assignment Mechanism
3. Pool Transparency by Operator
4. Payout Threshold and Frequency
5. Pool Stability and Robustness
6. Pool Fee Structure
Does Size Matter?
Supporting Decentralization
What Is Cryptocurrency Mining?
Cryptocurrency mining is the process through which transactions are verified and added to a blockchain public ledger. The process of verifying these transactions—known as "finding blocks" in some cryptocurrency ecosystems—is time- and computing power-intensive. As a result, individuals who work toward this goal are rewarded for their efforts, usually with tokens of the cryptocurrency.1
Understanding Cryptocurrency Mining Pools
While the rewards of mining appear lucrative, the process is complex. In the case of Bitcoin, for instance, the mining process is set up in such a way that if more miners attempt to mine the available cryptocurrency tokens, thereby increasing the amount of computing power dedicated to mining, the difficulty level of mining goes up.2
Add to this the prospect of having to spend hundreds or even thousands of dollars on an expensive and specialized mining rig, as well as the cost associated with electricity, and individual miners often do not find cryptocurrency mining to be a profitable venture.
For these reasons, mining pools have come to dominate the cryptocurrency mining world. They act as a group of miners who combine their resources over a network and jointly attempt to mine digital currency with increased cumulative computing power. A mining pool has a higher chance of finding a reward, though it needs to be shared among pool members based on pre-specified terms.
Below, we'll examine the selection criteria that a miner should keep in mind before selecting a mining pool.
1. Infrastructure Compatibility
With hundreds of mining devices already available on the market and with new-age advanced devices hitting stores every day, it is important to check whether the mining device you use is compatible with the pool requirements. For example, Slushpool, one of the oldest mining pools, clearly advises against the use of CPU, GPU or smartphone-based mining of bitcoin.3
Similarly, a pool may not support the use of any and all mining software packages, and a miner may need specific software that is compatible with the pool. Some pools may also require miners to have a minimum network connection speed to the pool server, and that may need to be verified against the internet speed available to the miner. Before evaluating the pros and cons of a pool, it is worth considering whether these stipulations may disqualify you from participating anyway.
2. Task Assignment Mechanism
Mining pools use different methodologies to assign work to miners. Say pool A has stronger miners and pool B has comparatively weaker miners. A pooling algorithm running on the pool server should be efficient enough to distribute the mining tasks evenly across those subgroups.
One common method is to assign more difficult tasks to the stronger pool A, and comparatively easier tasks to the weaker pool B, which allows for uniformity in average communication frequency to different miners who have varying capacities across the network.
For example, Slushpool uses a specially designed algorithm called Vardiff (Variable Difficulty Algorithm), which assigns more difficult tasks to stronger individual miners and less difficult ones to weaker miners, thereby facilitating relatively even communication frequency. It allows for a balanced flow of hash data to the pool server that ensures the correct measurement of the hash rate generated by the miner, so each miner has a fair chance of getting rewarded.4
Before joining a mining pool, a miner should pay attention to uniformity in hash tasks that get assigned by the pool server irrespective of the mining power of a participant’s device. Imagine joining a pool that gives priority to high-speed devices. You may have an advantage today if you join such a pool with the latest and most speedy miner, but it may become a disadvantage tomorrow as new, more powerful devices join the pool, pushing back your now-obsolete devices unless the pool mechanism ensures equal opportunity for all.
3. Pool Transparency by Operator
There are obligations of the mining pool operator that must be performed fairly in order to ensure transparency and trustworthiness among the mining members. For instance, how would a miner know whether the total hash rate that is being declared at the pool level is fair, or whether the pool operators are not taking the participant miners for a ride by quoting lower payouts? How realistically lucky (or unlucky) was the pool at different levels of mining difficulty?
Mining pools implement various measures, like offering a real-time dashboard view to miners, to bring in this required transparency. Miners should look for such data transparency, and join the pools that operate in a transparent manner.
4. Payout Threshold and Frequency
If you have low-end hardware devices, you should avoid pools that have higher thresholds for making payments. Your lower computational output will be less, leading to lower earnings, and you may need to wait longer to hit the threshold to get paid. The same applies to the payment frequency of the mining pool.
5. Pool Stability and Robustness
Another important factor to consider before joining a pool is the assessment for its security. Does the pool offer a secure connection or an open connection? Is it vulnerable to DDoS attacks, which have become common with increased pooling activity?5 And if hit by hackers, can the mining pool withstand and repeal the attack?
6. Pool Fee Structure
Along with pools that charge a nominal fee to participants for using the mining pool services, there are pools that charge no fee at all. However, miners should pay attention to the fee structure and the mathematical formula of the payout, which may include other charges.
Some zero-fee pools may be limited-time offers and become chargeable later, while others may charge a fixed and/or frequent separate cost in the name of a “donation.” Still others may require you to host and run the software on your own device instead of being run on the pool server, which makes it a high-cost input for the miner.
Does Size Matter?
Many opine that pool size does not matter much and that the number of coins mined over a period of time is proportional to the computing power of the large- or small-sized pools, making it a level playing field. But there is a catch: time does matter!
Larger pools have a higher probability of finding blocks as a result of their larger computing power, while smaller ones may need to wait longer. Observed over a suitable time period, the smaller pools may have long periods of not finding a block, but that can be followed by a quick lucky period where blocks are hit sooner.
If you are good with irregular payouts over long periods of time, a smaller pool offering higher payout may be right for you. In contrast, someone who needs steady income with a high probability, low-payout scheme may opt for a larger pool.
All this being said, a mining pool's size does reflect its trustworthiness to some extent. Despite all the positive and negative feedback posted online about a pool, a large number of active miners holding on to that pool suggests that they continue to trust that pool.
Supporting Decentralization
While it may be tempting to pick a popular mining pool by its large size, the underlying blockchain concept recommends that the network is better maintained in a truly decentralized manner if a large number of smaller pools are used for mining rather than a smaller number of large pools.
This is an important consideration in maintaining a healthy state of the overall blockchain network and to avoid any risky concentration of hashing power through a few large-sized pool servers. Network bandwidth clogging is a common problem observed on blockchains. This recommendation avoids concentration of power with a few large pools, keeping the blockchain truly decentralized.
Successful mining involves both luck and computational efforts, along with lots of patience. While pool mining may make some things easier for the miner by offering a ready-made setup, it adds another level of checks for the miner. Using the above-mentioned factors, miners should carefully choose a pool that suits their needs.
How should investors make sense of these contravening narratives?android tether clicker bitcoin
android tether
bitcoin покер service bitcoin
explorer ethereum bitcoin проблемы bitcoin 15 ethereum биржа
collector bitcoin bitcoin google bitcoin black ethereum core ico bitcoin bitcoin cudaminer разделение ethereum
бесплатные bitcoin kurs bitcoin сети bitcoin json bitcoin dag ethereum
ethereum dark
bitcoin бесплатный bitcoin china bitcoin конверт кошелька bitcoin bitcoin отзывы bitcoin stiller
bitcoin download casinos bitcoin 4pda bitcoin transactions bitcoin bitcoin оборудование кошелька bitcoin monero калькулятор monero wallet 2x bitcoin падение bitcoin bitcoin проект dash cryptocurrency порт bitcoin bitcoin background bitcoin joker nasdaq bitcoin pool bitcoin ethereum бесплатно bitcoin bitrix
bitcoin switzerland bitcoin multisig bitcoin vector kaspersky bitcoin bitcoin check ethereum википедия buying bitcoin ethereum txid
тинькофф bitcoin
The Rise of Cryptocurrencies!bitcoin знак cfd bitcoin
cudaminer bitcoin
ethereum пул bitcoin wiki bitcoin сбербанк Since Bitcoin is a digital bearer instrument, the receiver of a payment does not get any information from the sender that can be used to steal money from the sender in the future, either by that merchant or by a criminal who steals that information from the merchant.bitcoin today bitcoin сделки bitcoin создать xbt bitcoin bitcoin bounty курс ethereum bitcoin department bitcoin course bitcoin сегодня bitcoin torrent nanopool ethereum bitcoin classic
платформу ethereum bitcoin instaforex
explorer ethereum ethereum foundation bitcoin настройка ethereum продам bitcoin utopia
monero coin rocket bitcoin bitcoin цена сложность monero
bitcoin перспектива bitcoin описание bitcoin автоматически q bitcoin zcash bitcoin bitcoin money ethereum wikipedia котировки ethereum bitcoin bcc карты bitcoin Ключевое слово monero hardware bitcoin spend bitcoin hesaplama trade cryptocurrency обменник bitcoin bitcoin начало msigna bitcoin asics bitcoin bitcoin qazanmaq gek monero кран ethereum bitcoin mmgp bitcoin телефон bitcoin elena bitcoin currency Bitcoins and altcoins are controversial because they take the power of issuing money away from central banks and give it to the general public. Bitcoin accounts cannot be frozen or examined by tax inspectors, and middleman banks are unnecessary for bitcoins to move. Law enforcement officials and bankers see bitcoins as similar to gold nuggets in the wild west — beyond the control of police and financial institutions.So you’ve learned the basics of bitcoin, now you’re excited about its potential and want to buy some. But how?bitcoin calc ethereum free mmm bitcoin кредиты bitcoin
flash bitcoin bitcoin bitminer ethereum валюта fake bitcoin банкомат bitcoin swiss bitcoin bitcoin usd bank cryptocurrency bitcoin pay balance bitcoin bitcoin оплатить kurs bitcoin ethereum web3
bitcoin clouding bitcoin slots loan bitcoin ethereum асик apple bitcoin ethereum bonus bitcoin аналитика blitz bitcoin bitcoin сколько ethereum упал магазин bitcoin bitcoin goldmine bitcoin fan список bitcoin bitcoin что bitcoin land monero rur bitcoin отслеживание bitcoin earning криптовалюты bitcoin ethereum core ethereum конвертер карты bitcoin txid bitcoin
bitcoin автокран bitcoin converter фото bitcoin bitcoin matrix bitcoin кранов bitcoin счет краны monero bitcoin анализ bitcoin reklama hardware bitcoin bitcoin список
скачать bitcoin dwarfpool monero bitcoin фирмы bitcoin fan bitcoin script airbit bitcoin How you manage your ETH and your Ethereum account. You'll need a wallet to get started – we'll help you choose one.bitcoin source Ethereum is open access to digital money and data-friendly services for everyone – no matter your background or location. It's a community-built technology behind the cryptocurrency ether (ETH) and thousands of applications you can use today.9External linksмайн ethereum bitcoin investing monero cryptonote magic bitcoin transaction bitcoin ethereum coingecko анимация bitcoin 999 bitcoin bitcoin обзор dark bitcoin
cryptocurrency price bitcoin green project ethereum ico monero minergate monero bloomberg bitcoin solo bitcoin ico cryptocurrency express bitcoin email bitcoin bitcoin service express bitcoin куплю bitcoin компьютер bitcoin основатель bitcoin config bitcoin bitcoin xpub bitcoin авито
bitcoin signals bitcoin play bitcoin футболка bitcoin комментарии multiplier bitcoin bitcoin poloniex 4000 bitcoin bitcoin вложения ethereum erc20 кредиты bitcoin bitcoin service майнер bitcoin cryptocurrency calendar locals bitcoin
проект ethereum bitcoin tube видеокарты bitcoin bitcoin инструкция крах bitcoin bitcoin source converter bitcoin express bitcoin sha256 bitcoin генератор bitcoin
bitcoin blog bitcoin вложить Let S be the state at the end of the previous block.instaforex bitcoin bitcoin java box bitcoin карты bitcoin bitcoin wmx продажа bitcoin win bitcoin bitcoin окупаемость обновление ethereum bitcoin реклама символ bitcoin bitcoin ваучер bitcoin eobot купить bitcoin secp256k1 bitcoin bitcoin рейтинг game bitcoin миксеры bitcoin
Bitcoin is two things: it is a digital currency unit and it is the global payment network with which one sends and receives those currency units. Both the currency unit and the payment network share the same name: Bitcoin.bitcoin source wikileaks bitcoin bitcoin etf андроид bitcoin mining ethereum bitcoin redex bitcoin value
bonus bitcoin ethereum обменники кошельки ethereum ethereum pos bitcoin мастернода ethereum токены торговать bitcoin ethereum картинки bitcoin valet All over Silicon Valley and around the world, many thousands of programmers are using Bitcoin as a building block for a kaleidoscope of new product and service ideas that were not possible before. And at our venture capital firm, Andreessen Horowitz, we are seeing a rapidly increasing number of outstanding entrepreneurs – not a few with highly respected track records in the financial industry – building companies on top of Bitcoin.Bitcoin’s programmed difficulty for verifying transactions is automatically updated every two weeks, and it seeks the optimal point of profitability and security. In other words, the difficulty of the puzzle to add new blocks to the blockchain is automatically tuned up or down depending on how efficiently miners as a whole are solving those puzzles.sberbank bitcoin криптовалюта ethereum bitcoin fpga boxbit bitcoin bitcoin heist bitcoin net tp tether bitcoin доходность
bitcoin rub bitcoin приват24 bitcoin two bitcoin котировка bitcoin займ bitcoin skrill blockchain ethereum игра ethereum майнеры monero bitcoin pay bitcoin лучшие bitcoin bitminer bitcoin telegram ethereum конвертер bitcoin wm love bitcoin half bitcoin блоки bitcoin bitcoin конвертер bitcoin delphi
bitcoin cnbc bitcoin department phoenix bitcoin 2 bitcoin bitcoin фарм the ethereum lealana bitcoin инструкция bitcoin bitcoin qr оплата bitcoin bitcoin бумажник bitcoin stock bitcoin background uk bitcoin ethereum supernova bitcoin dollar bitcoin python tether coin bitcoin ферма bitcoin change проекты bitcoin куплю ethereum bitcoin jp
bitcoin formula скачать bitcoin
зарегистрировать bitcoin валюты bitcoin 1 monero розыгрыш bitcoin
bitcoin mastercard bitcoin получить bitcoin motherboard buy tether metatrader bitcoin bitcoin script bitcoin bloomberg платформы ethereum aml bitcoin
tether wallet bitcoin monero ethereum serpent
bitcoin миксер bitcoin конец wechat bitcoin 777 bitcoin bitcoin rpc
bitcoin hash
bitcoin проверить fx bitcoin bitcoin redex bitcoin doge lealana bitcoin bitcoin котировка bitcoin foto bitcoin p2p nicehash monero bitcoin видеокарта bitcoin multiplier акции bitcoin tp tether bitcoin keywords проект ethereum bitcoin machine accepts bitcoin bitcoin cap raiden ethereum магазин bitcoin wallets cryptocurrency bitcoin collector client ethereum 1000 bitcoin FACEBOOKbitcoin registration bitcoin аккаунт 500000 bitcoin coinbase ethereum bitcoin куплю bitcoin flip ethereum виталий exchange bitcoin bitcoin kurs взлом bitcoin ethereum chaindata bitcoin rt bcn bitcoin xbt bitcoin bitcoin компьютер bitcoin xpub цена ethereum ethereum история bitcoin genesis fork ethereum remix ethereum nicehash bitcoin bitcoin future stake bitcoin lavkalavka bitcoin bitcoin создать ethereum история bitcoin количество форумы bitcoin майнинг tether bitcoin игры cryptocurrency trading краны monero bitcoin poker wild bitcoin особенности ethereum tether clockworkmod fees, transaction fees, and a 1.5% withdrawal fee. Overall, the advantages ofcran bitcoin neo bitcoin bitcoin payment remix ethereum
bitcoin развод ethereum usd bitcoin group cryptocurrency calendar blockchain ethereum bitcoin вики red bitcoin hd7850 monero bitcoin background протокол bitcoin Bitcoin exchanges such as Coinbase bring together market participants from around the world to buy and sell cryptocurrencies. These exchanges have been both increasingly popular (as Bitcoin's popularity itself has grown in recent years) and fraught with regulatory, legal and security challenges. With governments around the world viewing cryptocurrencies in various ways – as currency, as an asset class, or any number of other classifications – the regulations governing the buying and selling of bitcoins are complex and constantly shifting. Perhaps even more important for Bitcoin exchange participants than the threat of changing regulatory oversight, however, is that of theft and other criminal activity. While the Bitcoin network itself has largely been secure throughout its history, individual exchanges are not necessarily the same. Many thefts have targeted high-profile cryptocurrency exchanges, oftentimes resulting in the loss of millions of dollars worth of tokens. The most famous exchange theft is likely Mt. Gox, which dominated the Bitcoin transaction space up through 2014. Early in that year, the platform announced the probable theft of roughly 850,000 BTC worth close to $450 million at the time. Mt. Gox filed for bankruptcy and shuttered its doors; to this day, the majority of that stolen bounty (which would now be worth a total of about $8 billion) has not been recovered.WHAT IS ETHEREUM?bitcoin prominer сайте bitcoin bitcoin money курс ethereum playstation bitcoin bitcoin заработок bitcoin xl multiply bitcoin приват24 bitcoin bitcoin pool world bitcoin trader bitcoin bitcoin pump
bitcoin презентация bitcoin spinner tether provisioning ethereum контракты клиент bitcoin bitcoin сигналы 4pda bitcoin ethereum api ethereum кошелек bitcoin alert bitcoin world apk tether bitcoin 4pda claim bitcoin bitcoin calc s bitcoin pools bitcoin ethereum transactions
captcha bitcoin обменник monero
майнинг bitcoin monero gpu difficulty bitcoin приложение tether
анализ bitcoin вклады bitcoin bitcoin blockstream tether обзор пожертвование bitcoin reward bitcoin bitcoin nachrichten ethereum free What is SegWit and How it Works Explainedmonero ico
bitcoin партнерка bitcoin мошенники bitcoin прогноз приват24 bitcoin bitcoin purchase bitcoin eu wei ethereum ethereum вики hack bitcoin bitcoin kraken bitcoin кредиты ethereum foundation ethereum price galaxy bitcoin moneybox bitcoin cryptocurrency calendar tether bitcointalk ethereum contracts
bitcoin pdf bitcoin collector
ethereum настройка bitcoin bat хабрахабр bitcoin trezor bitcoin global bitcoin ethereum alliance bitcoin 100 http bitcoin bitcoin reddit monero новости Difficulty factorбудущее ethereum bitcoin forbes fpga bitcoin ethereum купить bitcoin пузырь bitcoin code кости bitcoin
ethereum go bitcoin parser github ethereum вебмани bitcoin платформу ethereum bitcoin master bitcoin trading Let’s put away real numbers for a second, and assume a simple thought experiment, with made-up numbers for clarity of example.bitcoin make bitcoin дешевеет bitcoin base
bitcoin fire bitcoin maps bitcoin обменник monero пул monero wallet андроид bitcoin captcha bitcoin обмен monero bitcoin bounty теханализ bitcoin вход bitcoin bitcoin pro bitcoin payza bitcoin bounty платформу ethereum
bitcoin ферма валюты bitcoin карта bitcoin bitcoin stock Second, centralization of currency has a tendency to change the rules, often to catastrophic effect. Indeed, 20th century economics is the story of central banks slowly degrading fiat money’s store of value utility. The average fiat currency has a lifespan of 27 years for this reason, despite the backing of powerful entities like governments and near universal usage within an entire country as a medium of exchange. 'Features', ability to react quickly and usage simply do not matter nearly as much to the survival of a currency as scarcity and immutability.pizza bitcoin bitcoin euro обзор bitcoin bitcoin видеокарты bitcoin биржи monero кошелек bitcoin slots monero gpu lazy bitcoin bitcoin кошелек bitcoin split bitcoin loan bitcoin кредит bitcoin froggy bitcoin tor ethereum ann таблица bitcoin bitcoin qr bitcoin pdf bitcoin продам
http bitcoin майнеры bitcoin bitcoin cms обменники bitcoin
вложения bitcoin web3 ethereum cryptocurrency calculator настройка monero bitcoin bitminer cubits bitcoin tether верификация spend bitcoin bitcoin динамика bitcoin journal clockworkmod tether
bitcoin neteller продам ethereum ethereum chart
bitcoin криптовалюта factory bitcoin
bitcoin doge bitcoin торрент андроид bitcoin bitcoin автоматически cryptocurrency price bitcoin zone bitcoin кранов token bitcoin bitcoin goldmine iso bitcoin bitcoin weekly adbc bitcoin java bitcoin usa bitcoin rigname ethereum bitcoin переводчик 1 monero swarm ethereum
кредиты bitcoin баланс bitcoin приложение bitcoin
bitcoin take bitcoin cracker
miner bitcoin hourly bitcoin отследить bitcoin credit bitcoin loans bitcoin настройка ethereum win bitcoin bitcoin reklama daemon bitcoin Bitcoin Core includes code that detects a hard fork by looking at block chain proof of work. If a non-upgraded node receives block chain headers demonstrating at least six blocks more proof of work than the best chain it considers valid, the node reports a warning in the 'getnetworkinfo' RPC results and runs the -alertnotify command if set. This warns the operator that the non-upgraded node can’t switch to what is likely the best block chain.торги bitcoin bitcoin википедия запросы bitcoin
bitcoin best bitcoin registration account bitcoin криптовалюта tether bloomberg bitcoin андроид bitcoin bitcoin example bitcoin habrahabr краны monero bitcoin рубли cpuminer monero accepts bitcoin bitcoin 1070 bitcoin darkcoin 3d bitcoin bitcoin торрент
bitcoin change loans bitcoin metropolis ethereum аккаунт bitcoin курсы bitcoin nodes bitcoin chart bitcoin майнинг monero phoenix bitcoin hyip bitcoin etoro bitcoin bitcoin ротатор antminer bitcoin trading cryptocurrency fpga ethereum bitcoin planet пулы bitcoin спекуляция bitcoin daemon bitcoin кран ethereum
credit bitcoin amazon bitcoin bitcoin китай bitcoin кошелек bitcoin purse equihash bitcoin panda bitcoin bitcoin exchanges bitcoin миксер казино bitcoin bitcoin проблемы bitcoin в store bitcoin майнинг monero tether майнинг
monero client обменять bitcoin конференция bitcoin bitcoin solo bitcoin delphi bloomberg bitcoin card bitcoin 100 bitcoin bitcoin регистрация bitcoin пицца bitcoin review рубли bitcoin bio bitcoin bitcoin start bitcoin High hash rate - You can think of hash rate as the processing power of the hardware.minergate ethereum Are these strong words from a prominent bank CEO warning about a Ponzi scheme, or frustration from a bank boss who’s possibly worried about missing the boat when it comes to cryptocurrencies? bitcoin комбайн Bitcoin’s Criminal Recordкурс ethereum аналитика bitcoin bitcoin япония bitcoin puzzle 2 bitcoin solo bitcoin bitcoin баланс падение ethereum ethereum studio bitcoin roulette вики bitcoin bitcoin софт лото bitcoin bitcoin fan чат bitcoin bitcoin clicker bitcoin services обновление ethereum bitcoin legal bitcoin ios moneybox bitcoin nonce bitcoin ethereum serpent bitcoin expanse ethereum block bitcoin mail bitcoin dance addnode bitcoin the ethereum bitcoin banking акции bitcoin bitcoin china zcash bitcoin сколько bitcoin bitcoin facebook
There are two important reasons why the POS algorithm does not live up toethereum blockchain mastering bitcoin plus500 bitcoin total cryptocurrency bitcoin партнерка bitcoin goldmine bitcointalk ethereum
bitcoin q bitcoin перевод
создать bitcoin покер bitcoin free bitcoin
