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.
bitcoin multibit
bitcoin rotators
windows bitcoin bitcoin live магазин bitcoin bitcoin icon flex bitcoin gift bitcoin bitcoin алгоритм loco bitcoin wifi tether mining bitcoin торрент bitcoin bitcoin key bitcoin config
bitcoin live bitcoin wiki usdt tether bitcoin брокеры bitcoin payza microsoft ethereum
bitcoin earn
rise cryptocurrency bitcoin обменники bitcoin 2048 hashrate bitcoin bitcoin 4000 android tether mikrotik bitcoin bitcoin fire
dag ethereum british bitcoin эфир bitcoin film bitcoin coinmarketcap bitcoin
монет bitcoin bitcoin json q bitcoin bitcoin 50000 bitcoin links testnet bitcoin tether верификация bitcoin видеокарты monero benchmark bitcoin котировки
разделение ethereum dapps ethereum bitcoin trend
store bitcoin testnet bitcoin bitcoin cudaminer fx bitcoin новости monero bitcoin 5 форумы bitcoin monero 1060 bitcoin бонусы p2pool monero мониторинг bitcoin by bitcoin bitcoin io пополнить bitcoin bitcoin com история ethereum bitcoin monkey bitcoin daily
bitcoin local bitcoin сша Bitcoin Mining Hardware: How to Choose the Best One3. Five Industries that Blockchain will DisruptThere is concern that cryptocurrencies like Bitcoin are not rooted in any material goods. Some research, however, has identified that the cost of producing a Bitcoin, which requires an increasingly large amount of energy, is directly related to its market price.bitcoin comprar bitcoin multisig bitcoin бизнес monero simplewallet FACEBOOK4pda bitcoin
Blockchain has come to the forefront of many discussions because of its role in distributing cryptocurrencies like bitcoin. In the long run, these digital cash transactions may become a small part of blockchain technology's overall footprint and the way assets are transferred online.0 bitcoin bitcoin all balance bitcoin bitcoin платформа wikileaks bitcoin ethereum dark 2 bitcoin arbitrage bitcoin
clockworkmod tether bitcoin instant
bitcoin книги bitcoin msigna bitcoin mmgp асик ethereum пожертвование bitcoin cryptocurrency law bitcoin background bitcoin roll bitcoin symbol bitcoin автоматом apple bitcoin ethereum supernova верификация tether bitcoin electrum
check bitcoin kraken bitcoin plasma ethereum обновление ethereum bitcoin оборот ethereum myetherwallet заработать monero bitcoin background bitcoin часы bitcoin abc bitcoin s casascius bitcoin tails bitcoin tether download bitcoin code stock bitcoin bitcoin weekend nodes bitcoin bitcoin видео
balance bitcoin bitcoin crane bitcoin видеокарта grayscale bitcoin bitcoin github usb bitcoin сайте bitcoin android tether tether скачать bitcoin dogecoin blockchain ethereum golden bitcoin
nonce bitcoin прогноз bitcoin The lower-left quadrant:bitcoin virus bitcoin матрица
nonce bitcoin
bitcoin сервисы bank bitcoin bitcoin official курс tether bitcoin зебра bitcoin grant
шахта bitcoin bitcoin froggy monero bitcoin anonymous bitcoin pay ethereum supernova monero cpuminer bitcoin торрент автомат bitcoin usd bitcoin free ethereum roulette bitcoin bitcoin explorer bitcoin analytics вывод ethereum
клиент bitcoin bitcoin оплата monero ethereum bitcoin bitcoin 1000
monero simplewallet
cryptonight monero bitcoin рухнул bitcoin monkey uk bitcoin bitcoin trader bitcoin курсы converter bitcoin bitcoin переводчик wallet tether bitcoin timer bitcoin usa bitcoin greenaddress blake bitcoin top cryptocurrency alien bitcoin bitcoin fork takara bitcoin bitcoin войти bitcoin take It's also important to keep in mind that the bitcoin network itself is likely to change significantly between now and then. Considering how much has happened to bitcoin in just a decade, new protocols, new methods of recording and processing transactions, and any number of other factors may impact the mining process.Mining Poolbitcoin coingecko удвоитель bitcoin tether программа краны monero monero 1060 cryptocurrency forum
блокчейна ethereum bitcoin хабрахабр мастернода bitcoin monero algorithm bitcoin анонимность paidbooks bitcoin bitcoin куплю bitcoin alien lucky bitcoin инструкция bitcoin android tether bitcoin транзакция bitcoin moneybox ethereum статистика ecopayz bitcoin qiwi bitcoin bitcoin телефон bitcoin machines статистика ethereum pos ethereum bitcoin wm bank bitcoin bitcoin аналоги bus bitcoin bitcoin fasttech vk bitcoin cryptocurrency mining bitcoin bux платформа bitcoin tether комиссии bitcoin cz crococoin bitcoin ads bitcoin monero logo bitcoin airbit bitcoin лого bitcoin коллектор bitcoin заработок ava bitcoin
bitcoin dice
bitcoin биржи mac bitcoin forecast bitcoin
matrix bitcoin bitcoin презентация
миксер bitcoin ethereum blockchain конвектор bitcoin
bitcoin advcash bitcoin new
ethereum charts бесплатные bitcoin
email bitcoin bitcoin транзакция ethereum blockchain ethereum rotator ethereum russia bitcoin trojan андроид bitcoin bitcoin paypal
кликер bitcoin е bitcoin cryptocurrency charts ethereum browser second bitcoin boom bitcoin water bitcoin автомат bitcoin bitcoin exe monero вывод конференция bitcoin tether обменник cryptocurrency faucet earn bitcoin bitcoin перевод email bitcoin
bitcoin отзывы
майнить bitcoin pinktussy bitcoin
bitcoin cloud миллионер bitcoin
python bitcoin ethereum usd bitcoin check 1070 ethereum bitcoin stealer panda bitcoin bitcoin markets монеты bitcoin форум bitcoin monero minergate
bitcoin ммвб графики bitcoin monero nvidia bitcoin server ethereum wiki bitcoin реклама
60 bitcoin
bitcoin цена tether limited настройка monero bitcoin программа
ethereum калькулятор магазины bitcoin bitcoin обменник bitcoin knots ethereum заработок monero spelunker взлом bitcoin рубли bitcoin bitcoin лайткоин dwarfpool monero bestexchange bitcoin micro bitcoin konvert bitcoin смесители bitcoin
faucets bitcoin wikileaks bitcoin blue bitcoin
bitcoin адреса r bitcoin polkadot stingray bitcoin рублях казино bitcoin bitcoin fpga bitcoin office ethereum майнить bitcoin пицца bitcoin государство приложение tether ethereum описание миксер bitcoin bitcoin life bitcoin обменник byzantium ethereum запрет bitcoin ethereum dao get bitcoin bitcoin scrypt iso bitcoin planet bitcoin bitcoin видеокарты bitcoin матрица bitcoin carding bitcoin casino
roll bitcoin bitcoin калькулятор habrahabr bitcoin bitcoin рейтинг прогноз bitcoin ethereum russia
bitcoin token widget bitcoin bitcoin 50 monero node is bitcoin
bitcoin doubler monero coin bitcoin code cryptocurrency tech chaindata ethereum бизнес bitcoin flash bitcoin
tcc bitcoin bitcoin analysis bitcoin exchange difficulty bitcoin solo bitcoin bitcoin роботы bitcoin описание bitcoin multiplier pplns monero platinum bitcoin service bitcoin bazar bitcoin cryptocurrency magazine bitcoin withdraw кошелька ethereum калькулятор monero суть bitcoin
reverse tether bitcoin 3 bitcoin часы bye bitcoin exchange monero wei ethereum ethereum видеокарты
видеокарты bitcoin bitcoin golden bitcoin store bitcoin zebra bitcoin окупаемость bitcoin clouding bitcoin alliance ethereum chaindata bitcoin это Bitcoin they do not provide censorship-resistant guarantees. Once secured by a miner, a Bitcoinфонд ethereum заработок bitcoin
bitcoin pizza windows bitcoin фермы bitcoin demo bitcoin bitcoin plus bitcoin keywords bitcoin фарминг qtminer ethereum автокран bitcoin bitcoin fun
bitcoin зарегистрироваться bitcoin телефон
So, with a decentralized app like Peepeth, once you publish a message to the blockchain, it can’t be erased, not even by the company that built the platform. It will live on Ethereum forever.bitcoin бонусы bitcoin forex bitcoin china nova bitcoin ethereum 4pda установка bitcoin кошелек monero cubits bitcoin bitcoin balance
bitcoin 1070 telegram bitcoin bitcoin анализ bitcoin проблемы bitcoin anonymous bitcoin настройка bitcoin шрифт
decred cryptocurrency all cryptocurrency bitcoin cny accepts bitcoin зарегистрироваться bitcoin carding bitcoin bitcoin автомат masternode bitcoin bitcoin reddit продам ethereum bitcoin анонимность bitcoin market dark bitcoin bitcoin coinmarketcap cryptocurrency charts monero hardware bitcoin 2010
(Euro address)bitcoin обвал monero криптовалюта video bitcoin fenix bitcoin bitcoin бесплатно nonce bitcoin bitcoin котировки зарегистрироваться bitcoin bitcoin grant legal bitcoin monero core carding bitcoin cronox bitcoin bitcoin global ethereum логотип bitmakler ethereum
розыгрыш bitcoin мастернода ethereum
bitcoinwisdom ethereum фарминг bitcoin ethereum алгоритмы ethereum калькулятор технология bitcoin вывод bitcoin shot bitcoin mining cryptocurrency tether usb вход bitcoin bitcoin китай bitcoin forum
bitcoin pdf bitcoin tx casascius bitcoin bye bitcoin 16 bitcoin bitcoin index nova bitcoin bitcoin 4096
bitcoin компьютер bitcoin платформа clicker bitcoin carding bitcoin куплю ethereum javascript bitcoin As far as mediums of exchange go, Bitcoin is actually quite economical of resources, compared to others.bitcoin майнер For example, if two users want to regularly send funds to each other quickly and easily they can set up a channel by creating a multi-signature (multisig) wallet and adding funds. From then on they can carry out an unlimited amount of transactions backed by these funds. Essentially, these are off-chain transactions recorded using a type of digital ledger protected by a time clock. Both parties digitally sign and update their version after each transaction – commonly done by scanning a QR code. The actual redistribution of the original funds in the wallet only happens on the blockchain itself when the channel is closed, based on the final balance sheet.ферма bitcoin Exchangeмайн ethereum bitcoin lite click bitcoin шахты bitcoin vizit bitcoin elysium bitcoin cgminer monero bitcoin usa курс ethereum шрифт bitcoin darkcoin bitcoin
разработчик bitcoin bitcoin generate up bitcoin bitcoin nachrichten доходность ethereum gadget bitcoin gadget bitcoin Progress is accelerating on more advanced solutions such as lightning, with transactions being sent on testnets (as well as some using real bitcoin). And the potential of Schnorr signatures is attracting increasing attention, with several proposals working on detailing functionality and integration.faucet ethereum
компиляция bitcoin ethereum bonus кошельки bitcoin monero алгоритм usdt tether новые bitcoin monero майнить secp256k1 ethereum cryptocurrency mail bitcoin maining bitcoin bitcoin script TABLE OF CONTENTSEthereum vs Bitcoin: The Basicsbitcoin ann таблица bitcoin
создать bitcoin bitcoin kurs bitcoin играть bitcoin virus ethereum pools bitcoin картинки биржи bitcoin
bitcoin trader boxbit bitcoin
monero algorithm bitcoin center часы bitcoin nvidia bitcoin получить bitcoin эпоха ethereum 20 bitcoin raiden ethereum msigna bitcoin
bitcoin msigna исходники bitcoin second bitcoin
boom bitcoin обменники bitcoin blitz bitcoin free monero bitcoin best roll bitcoin bitcoin hub
bitcoin card bitcoin maps майнер monero ethereum coin bitcoin проблемы
birds bitcoin ubuntu bitcoin payoneer bitcoin обвал ethereum бизнес bitcoin график monero
drip bitcoin monero news
bitcoin анимация dash cryptocurrency
bitcoin s окупаемость bitcoin обзор bitcoin bitcoin пирамида форумы bitcoin tera bitcoin
bitcoin ebay bitcoin map ethereum сайт bitcoin bcn bitcoin bitminer bitcoin список bitcoin ann bitcoin box ethereum кошельки таблица bitcoin bitcoin system bitcoin принцип майнинг bitcoin программа tether In the case of disagreement, stakeholders have two options. First, they can try and convince the other stakeholders to act in favor of their side. If they can’t reach consensus, they have the ability to hard fork the protocol and keep or change features they think are necessary. From there, both chains have to compete for brand, users, developer mindshare, and hash power.WHAT IS ETHEREUM MINING?abc bitcoin ethereum faucet bitcoin rotator bitcoin kz
cryptocurrency wallet bitcoin игры
blogspot bitcoin
mine ethereum мавроди bitcoin monero usd X-Hashcash: 1:52:380119:calvin@comics.net:::9B760005E92F0DAEHashes. These one-way cryptographic functions are what make it possible for nodes to verify the legitimacy of cryptocurrency mining transactions. A hash is an integral component of every block in the blockchain. A hash is generated by combining the header data from the previous blockchain block with a nonce.bitcoin доходность принимаем bitcoin Here are some reasons why Ethereum could be a strong long-term investment.bitcoin pools bitcoin card flash bitcoin bitcoin софт lealana bitcoin ethereum купить
бонус bitcoin adbc bitcoin bitcoin ethereum clame bitcoin bitcoin rotator пулы bitcoin
bitcoin miner обмена bitcoin bitcoin background bitcoin mine fields bitcoin fork ethereum bitcoin reward aliexpress bitcoin bitcoin airbit
bitcoin wmz bitcoin обналичить ethereum проекты dwarfpool monero дешевеет bitcoin bitcoin блок bitcoin биткоин bitcoin rt bonus bitcoin
bitcoin xl
tcc bitcoin pool bitcoin bitcoin pools raiden ethereum bio bitcoin nodes bitcoin отзыв bitcoin auction bitcoin ethereum price bitcoin multiplier bitcoin song bitcoin vpn flypool monero water bitcoin bitcoin анализ обучение bitcoin A blockchain is the decentralised, public ledger or list of a cryptocurrency’s transactions. Completed blocks, comprised of the latest transactions, are recorded and added to the blockchain. They are stored in chronological order as an open, permanent and verifiable record. A peer-to-peer network of market participants manage blockchains, and they follow a set protocol for validating new blocks. Each ‘node’ or computer connected to the network automatically downloads a copy of the blockchain. This allows everyone to track transactions without the need for central record keeping. bitcoin me cryptocurrency market bitcoin venezuela Open-source development is currently underway for a major upgrade to Ethereum known as Ethereum 2.0 or Eth2. The main purpose of the upgrade is to increase transaction throughput for the network from the current of about 15 transactions per second to up to tens of thousands of transactions per second.tether ico создатель bitcoin bitcoin обменник Litecoin cloud mining guide: everything you need to know to start cloud mining Litecoin. Read this guide %trump2% master Litecoin cloud mining like a pro!bitcoin xl widget bitcoin iota cryptocurrency
konvert bitcoin bitcoin заработок tp tether monero blockchain bitcoin pools ethereum сайт bitcoin iq
надежность bitcoin 1000 bitcoin взлом bitcoin обсуждение bitcoin lealana bitcoin цены bitcoin bitcoin валюта bitcoin atm cryptocurrency forum bitcoin шахты транзакция bitcoin programming bitcoin bitcoin торги bitcoin автомат
master bitcoin collector bitcoin
bitcointalk monero 1080 ethereum bitcoin golden mac bitcoin ethereum кошелек bitcoin jp pps bitcoin bitcoin eth ico monero обменник ethereum майнить bitcoin ethereum platform js bitcoin bitcoin аккаунт ethereum форум laundering bitcoin bitcoin qiwi cryptocurrency price bitcoin реклама перевести bitcoin bitcoin auto 999 bitcoin lurkmore bitcoin bit bitcoin транзакции bitcoin bitcoin украина daemon bitcoin bitcoin nodes checker bitcoin blender bitcoin
all cryptocurrency monero minergate bitcoin установка get bitcoin exchanges bitcoin pplns monero проблемы bitcoin динамика bitcoin обновление ethereum bitcoin atm monero fr bitcoin stealer legal bitcoin tether android bitcoin упал bitcoin easy bitcoin лохотрон importprivkey bitcoin debian bitcoin truffle ethereum advcash bitcoin bitcoin cracker How to Buy ZCash: Where and HowTransactions are cryptographically signed instructions from accounts. There are two types of transactions: those which result in message calls and those which result in contract creation.monero ico bitcoin primedice Altcoins have the same problem, though not in such an obvious way. Usually the creator is the de facto dictator for the coin and can do the same things that a government can. Taxes (dev tax, storage tax, etc), inflation, picking winners and losers (DAO, proof-of-X change, etc) are often decided by the creators. As a holder of an altcoin, you have to trust not just the current leader, but all future leaders of the coin to not confiscate, tax away or inflate away your coins. In other words, altcoins and ICOs are not qualitatively different than fiat. In altcoin and ICO-land, you are not sovereign over your own coins!bitcoin хабрахабр ethereum charts