Jump to: , Contents 1 2 3 4 5 6 Pooled mining will not have a significant effect on the expectation of your payouts (it can decrease a bit due to fees), but it can dramatically decrease their variance.All reward systems use the concept of "share", a hash which is easier than the real difficulty and proves you have worked on finding a valid block.Your reward when the pool finds a valid block depends on the shares you submitted.The main reward systems used are: Every share will give you, on average, the block reward (minus any pool fees) divided by the difficulty.For example, with a block reward of 50 BTC, 2% fee and difficulty of 240000, each share submitted will give on average 0.000204 BTC (204 μBTC).On average, one share will be found for every 2^32, or 4.295 billion, hashes calculated.So at 1 MHash/s, you will find a share on average every 72 minutes.If you constitute a significant part of the pool (say, above 1%), your variance will be roughly proportional to your portion of the pool.

If, for example, you are 20% of the pool, your variance will be 20% of solo mining variance (a decrease factor of 5 times).If not, your variance will not depend on the size of yourself or the pool, but rather on the scoring method used.For proportional, the decrease factor is roughly difficulty/ln(difficulty).For the geometric method the decrease factor is roughly (1 + 2*difficulty*c), where c is the score fee parameter used.Increasing the size of the pool will always decrease the variance, but at some point you will have diminishing marginal utility.Quote from: SoreGums on 2011/06/18 at 05:09:43 pm so what am i missing with this: having typed that out, I'm guessing that this is PPS... how does this promote pool hoping?if reward is only given after a block is found how is the operator out of pocket?sorry if this has all been covered elsewhere - most everything else I've read regarding payouts is not as simple as what I have put above Quote from: ewal on 2011/06/18 at 06:48:11 pm What you described is a transitional proportional payout scheme.

Your payout is proportional to the amount of work that you did for any given block.In your example, miner1 got 22.5 BTC (9*2.5).That is 22.5 BTC for 30 minutes of work = 45BTC per hour.If you compare to an unlucky block that takes 100 times as long to find: In this example miner1 still gets 22.5 BTC (900*0.025) except this time it took 100 times longer to get it.Now it was 22.5 BTC for 3000 minutes of work or 0.45 BTC per hour.Way less per hour because the block was very unlucky.ethereum business insiderTraditional Pay-per-share (PPS) is a different system where you get paid by the number of shares you submit regardless of if a block is found.ethereum push txThe payout per share is determined by taking 50/difficulty.ethereum mining pool

Say difficulty is 20, so the price per share is 2.5 or 50/20.In scenario 1, miner1 makes 22.5BTC in 30 minutes (9*2.5) or 45BTC per hour.In scenario 2, miner1 makes 2,250 BTC in 3000 minutes or the same 45BTC per hour.In PPS, your pay per hour is always the same even in the short term, but the drawback is that the pool might go bankrupt if there are too many long blocks.In proportional, your pay per hour in any given 24 hours varies based on if blocks are lucky or unlucky and the drawback is that pool hoppers skip town on long blocks.litecoin web walletIn MaxPPS, your pay per hour in any given 24 hours may also vary if the pool is small enough that it isn't reliably finding multiple blocks per day, but the variation will lower than in proportional because the pool has withheld some of the payment you would have received from short blocks so that it can pay you more on long blocks.konto na bitcoin

The benefits are that the pool can't go bankrupt, and there is no longer any incentive for pool hoppers to switch to another pool on long blocks.Jump to: , A statistically valid analysis of some pools and their payout methods: Bitcoin network and pool analysis The following pools are known or strongly suspected to be mining on top of blocks before fully validating them with Bitcoin Core 0.9.5 or later.Miners doing this have already lost over $50,000 USD during the 4 July 2015 fork and have created a situation where small numbers of confirmations are much less useful than they normally are.bitcoin investors twinsThe following pools are believed to be currently fully validating blocks with Bitcoin Core 0.9.5 or later (0.10.2 or later recommended due to DoS vulnerabilities):bitcoin pros vs consBitcoin mining pools are a way for Bitcoin miners to pool their resources together and share their hashing power while splitting the reward equally according to the amount of shares they contributed to solving a block.bitcoin soldado

A "share" is awarded to members of the Bitcoin mining pool who present a valid proof of work that their Bitcoin miner solved.Bitcoin mining in pools began when the difficulty for mining increased to the point where it could take years for slower miners to generate a block.The solution to this problem was for miners to pool their resources so they could generate blocks quicker and therefore receive a portion of the Bitcoin block reward on a consistent basis, rather than randomly once every few years.bitcoin orange countyIf you solo-mine, meaning you do not mine with a Bitcoin mining pool, then you will need to ensure that you are in consensus with the Bitcoin network.The best way is to use the official BitCore client.If you participate in a Bitcoin mining pool then you will want to ensure that they are engaging in behavior that is in agreement with your philosophy towards Bitcoin.For example, some rogue developers have threatened to release software that could hard-fork the network which would likely result in tremendous financial damage.

Therefore, it is your duty to make sure that any Bitcoin mining power you direct to a mining pool does not attempt to enforce network consensus rules you disagree with.When segwit is activated, you will want to be able to mine and relay segwit-style blocks.The following mining software has been upgraded to support segwit.Please note that software that supports the GetBlockTemplate (GBT) RPC must be upgraded to support the BIP9 and BIP145 changes to GBT.All the programs linked above that support GBT have been upgraded.Segwit is already activated and enforced on testnet, so you may find it useful to test your infrastructure upgrade by mining with some small amount of hashrate on testnet.Alternatively, Bitcoin Core 0.13.1’s regression test mode (regtest) also supports segwit by default.There are many good Bitcoin mining pools to choose from.Although it's tempting to pick the most popular one, it's better for the health of the network to mine with smaller pools so as to avoid potentially harmful concentration of hashing power.

The hash rate distribution is best when split among more Bitcoin mining pools.For a fully decentralized pool, we highly recommend p2pool.The following pools are believed to be currently fully validating blocks with Bitcoin Core 0.11 or later: BTCC: BTCC is a Bitcoin exchange, wallet, and mining pool located in China.Its mining pool currently controls around 15% of the network hash rate.Slush Pool: Slush Pool is run by Satoshi Labs, a Bitcoin company based in the Czech Republic.Slush Pool was the first mining pool and maintains around 7% of the network hash rate.Antpool: [WARNING] - Bitmain operates Antpool and some consider them to be a malicious actor in the Bitcoin ecosystem because of the AntBleed scandal where they were intentionally including malware within mining equipment they sell.In a corporate communication, Bitmain claimed this was a feature and not a bug.This malware would enable Bitmain to remotely shut down equipment of customers or competitors thus increasing their own profitability.

Additionally, such behavior could pose a risk to the entire Bitcoin network.Eligius: Eligius was one of the first Bitcoin mining pools and was founded by Luke Dashjr, a Bitcoin Core developer.Today, the pool controls just under 1% of the network hash rate.BitMinter: BitMinter, once one of the largest Bitcoin mining pools, now controls less than 1% of the network hash rate.Kano CKPool: Kano CKPool was founded in 2014 and currently has around 3% of the network hash rate under its control.F2Pool: F2Pool is the second largest Bitcoin mining pool, with around 25% of the network hash rate.Its user interface is in Chinese, making it difficult for English speakers to join.BW Pool: BW Pool controls around 7% of the network hash rate.Like F2Pool, its user interface is in Chinese, making it difficult for English speakers to join.Bitfury: Although seen publically in block explorers and hash rate charts, BitFury is a private mining pool and cannot be joined.Calculating your share of the bitcoins mined can be complex.

In an ongoing effort to come up with the fairest method and prevent gaming of the system, many calculation schemes have been invented.The two most popular types are PPS and DGM.PPS, or 'pay per share' shifts the risk to the mining pool while they guarantee payment for every share you contribute.PPS payment schemes require a very large reserve of 10,000 BTC in order to ensure they have the means of enduring a streak of bad luck.For this reason, most Bitcoin mining pools no longer support it.One of the few remaining PPS pools is EclipseMC.DGM is a popular payment scheme because it offers a nice balance between short round and long round blocks.However, end users must wait for full round confirmations long after the blocks are processed.PPS: The Pay-per-Share (PPS) approach offers an instant, guaranteed payout for each share that is solved by a miner.Miners are paid out from the pools existing balance and can withdraw their payout immediately.This model allows for the least possible variance in payment for miners while also transferring much of the risk to the pool's operator.

PROP: The Proportional approach offers a proportional distribution of the reward when a block is found amongst all workers, based off of the number of shares they have each found.PPLNS: The Pay Per Last N Shares (PPLN) approach is similar to the proportional method, but instead of counting the number of shares in the round, it instead looks at the last N shares, no matter the boundaries of the round.DGM: The Double Geometric Method (DGM) is a hybrid approach that enables the operator to absorb some of the risk.The operator receives a portion of payouts during short rounds and returns it during longer rounds to normalize payments.SMPPS: The Shared Maximum Pay Per Share (SMPPS) uses a similar approach to PPS but never pays more than the Bitcoin mining pool has earned.ESMPPS: The Equalized Shared Maximum Pay Per Share (ESMPPS) is similar to SMPPS, but distributes payments equally among all miners in the Bitcoin mining pool.RSMPPS: The Recent Shared Maximum Pay Per Share (RSMPPS) is also similar to SMPPS, but the system prioritizes the most recent Bitcoin miners first.

CPPSRB: The Capped Pay Per Share with Recent Backpay uses a Maximum Pay Per Share (MPPS) reward system that will pay Bitcoin miners as much as possible using the income from finding blocks, but will never go bankrupt.BPM: Bitcoin Pooled mining (BPM), also known as "Slush's pool", uses a system where older shares from the beginning of a block round are given less weight than more recent shares.This reduces the ability to cheat the mining pool system by switching pools during a round.POT: The Pay on Target (POT) approach is a high variance PPS that pays out in accordance with the difficulty of work returned to the pool by a miner, rather than the difficulty of work done by the pool itself.SCORE: The SCORE based approach uses a system whereby a proportional reward is distributed and weighed by the time the work was submitted.This process makes later shares worth more than earlier shares and scored by time, thus rewards are calculated in proportion to the scores and not shares submitted.ELIGIUS: Eligius was designed by Luke Jr., creator of BFGMiner, to incorporate the strengths of PPS and BPM pools, as miners submit proofs-of-work to earn shares and the pool pays out immediately.

When the block rewards are distributed, they are divided equally among all shares since the last valid block and the shares contributed to stale blocks are cycled into the next block's shares.Rewards are only paid out if a miner earns at least.67108864 and if the amount owed is less than that it will be rolled over to the next block until the limit is achieved.However, if a Bitcoin miner does not submit a share for over a period of a week, then the pool will send any remaining balance, regardless of its size.Triplemining: Triplemining brings together medium-sized pools with no fees and redistributes 1% of every block found, which allows your share to grow faster than any other Bitcoin mining pool approach.The administrators of these Bitcoin mining pools use some of the Bitcoins generated when a block is found to add to a jackpot that is triggered and paid out to the member of the pool who found the block.In this way, everyone in the pool has a better chance to make additional Bitcoins, regardless of their processing power.