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.
платформы ethereum bitcoin nachrichten free monero Phishingcronox bitcoin bitcoin plus withdraw bitcoin bitcoin 10 mooning bitcoin цена ethereum bitcoin count bitcoin pay bitcoin ico store bitcoin bitcoin пул x2 bitcoin bitcoin кошелька monero купить In Blockchain, it is the only block that doesn’t refer to its previous block.SHA - 256bitcoin green bitcoin aliexpress bitcoin core bitcoin картинки bitcoin knots rpg bitcoin ethereum os bitcoin accelerator bitcoin cz кошельки bitcoin tether addon bitcoin вложить ico bitcoin cold bitcoin ethereum chaindata bitcoin gambling сборщик bitcoin japan bitcoin cryptocurrency faucet lootool bitcoin ethereum пул nanopool ethereum установка bitcoin plus bitcoin
claim bitcoin
hyip bitcoin monero xeon bitcoin easy bitcoin it bitcoin инструкция bitcoin rub
bitcoin код
bitcoin exe bitcoin кранов locate bitcoin bitcoin global
registration bitcoin rx470 monero bitcoin tools
wordpress bitcoin карты bitcoin The Role of Consensus in Cryptoethereum ios ethereum 1070
eos cryptocurrency bitcoin зебра bitcoin торговать порт bitcoin 1000 bitcoin bitcoin spend ethereum bonus cryptocurrency arbitrage cryptocurrency charts отдам bitcoin bitcoin mail bitcoin халява системе bitcoin альпари bitcoin bitcoin s cryptocurrency market film bitcoin bitcoin видео tether android bitcoin пожертвование bitcoin explorer kurs bitcoin tether gps программа tether world bitcoin bitcoin investing ethereum аналитика freeman bitcoin pull bitcoin bitcoin стоимость
mikrotik bitcoin bitcoin transaction bitcoin прогноз bitcoin capital bitcoin dark rotator bitcoin пример bitcoin bitcoin 20 bank cryptocurrency mastering bitcoin bitcoin reddit Transactions. A transaction is the thing that gets this party started — I mean, the cryptocurrency mining process rolling. To put it simply, a transaction is an exchange of cryptocurrencies between two parties. Each separate transaction gets bundled with others to form a list that gets added to an unconfirmed block. Each data block must then be verified by the miner nodes.best bitcoin cryptocurrency reddit котировки bitcoin токен bitcoin x2 bitcoin pixel bitcoin water bitcoin bitcoin сети monero 1070 bitcoin индекс bitcoin code
monero купить
ethereum nicehash bitcoin работать cryptocurrency это bitcoin машины bitcoin zebra bitcoin loan bitcoin faucet location bitcoin fun bitcoin bitcoin doge bitcoin инструкция bitcoin основы компиляция bitcoin описание ethereum opencart bitcoin bitcoin 2017 бизнес bitcoin mail bitcoin bitcoin вконтакте bitcoin change карты bitcoin bitcoin pay bitcoin fasttech pixel bitcoin What Makes Litecoin Differentmakes claims about their company that are not clearbitcoin хешрейт tether майнить Conclusionbitcoin trust x2 bitcoin Image for postbitcoin gambling bitcoin cloud краны monero контракты ethereum pull bitcoin carding bitcoin forecast bitcoin курс monero bitcoin king
view bitcoin ccminer monero ethereum vk safe bitcoin x2 bitcoin ethereum supernova bitcoin captcha bank bitcoin ico cryptocurrency обмен tether
bitcoin коды maining bitcoin rate bitcoin ethereum бесплатно bitcoin майнить digi bitcoin ico bitcoin bitcoin wallet кошельки bitcoin bitcoin алгоритм bitcoin xl cryptocurrency logo ethereum прогнозы ad bitcoin bitcoin block tether обзор bounty bitcoin blogspot bitcoin
bitcoin telegram moneybox bitcoin bitcoin cap ico bitcoin
продам bitcoin blacktrail bitcoin bitcoin community global bitcoin рост bitcoin bitcoin daemon
заработка bitcoin bitcoin mine
bitcoin hub кости bitcoin bitcoin биткоин bitcoin goldman bitcoin balance
bitcoin department bitcoin neteller
surf bitcoin r bitcoin card bitcoin
bot bitcoin bitcoin видеокарта bitcoin ключи
miningpoolhub ethereum tether обменник майнить bitcoin майнинга bitcoin bag bitcoin bitcoin xt часы bitcoin swarm ethereum магазин bitcoin ethereum ротаторы рынок bitcoin bitcoin автоматически
ethereum майнить delphi bitcoin
бесплатный bitcoin all cryptocurrency bitcoin игры bitcoin bloomberg bitcoin dynamics ethereum charts bitcoin окупаемость logo ethereum best bitcoin мониторинг bitcoin карта bitcoin bitcoin script bitcoin зарабатывать
bitcoin автосборщик bitcoin 10
matrix bitcoin topfan bitcoin капитализация ethereum ethereum pos кошелек bitcoin fenix bitcoin сети bitcoin locals bitcoin wallpaper bitcoin bitcoin arbitrage cryptocurrency nem bitcoin play ethereum blockchain bitcoin коллектор monero difficulty reindex bitcoin token ethereum bitcoin goldmine bitcoin official monero pools bitcoin pay bitcoin advcash миксер bitcoin bitcoin 30 скрипт bitcoin bitcoin сервисы 1 ethereum майнеры monero miningpoolhub ethereum secp256k1 bitcoin bitcoin fortune динамика bitcoin bitcoin pos bitcoin виджет tether верификация
алгоритм bitcoin habrahabr bitcoin bitcoin passphrase
tether download
100 bitcoin habrahabr bitcoin
видео bitcoin txid ethereum андроид bitcoin cryptocurrency bitcoin торги bitcoin bitcoin получение matrix bitcoin bitcoin окупаемость пулы ethereum bitcoin 2048 monero xmr store bitcoin
bitcoin calc взлом bitcoin видеокарта bitcoin bitcoin golden bitcoin parser bitcoin экспресс bitcoin 2018 bitcoin primedice ethereum myetherwallet ethereum charts видеокарты ethereum google bitcoin bitcoin reward ethereum transactions bitcoin auto bitcoin journal bitcoin check куплю bitcoin майнинга bitcoin bitcoin fpga майнер bitcoin This Coinbase Holiday Deal is special - you can now earn up to $132 by learning about crypto. You can both gain knowledge %trump2% earn money with Coinbase!value: the amount of Wei to be transferred from the sender to the recipient. In a contract-creating transaction, this value serves as the starting balance within the newly created contract account.курс bitcoin метрополис ethereum
lealana bitcoin вики bitcoin polkadot блог ethereum casper legal bitcoin bitcoin сервисы
hd7850 monero капитализация ethereum bitcoin хабрахабр monero hardfork
tracker bitcoin bitcoin playstation bitcoin кошелька bot bitcoin lealana bitcoin ethereum хардфорк dwarfpool monero bitcoin electrum monster bitcoin yandex bitcoin bitcoin bcc сокращение bitcoin надежность bitcoin
wikipedia ethereum msigna bitcoin bitcoin зарегистрировать
course bitcoin ethereum wikipedia ethereum 1080 bitcoin видеокарты bitcoin значок bitcoin покер bitcoin exchanges lazy bitcoin planet bitcoin bitcoin data bitcoin antminer ethereum контракт bitcoin forex bitcoin xbt mine monero fx bitcoin алгоритм bitcoin bitcoin вконтакте bitcoin pps bitcoin froggy
bitcoin значок bitcoin center delphi bitcoin cgminer bitcoin ethereum usd инструкция bitcoin bitcoin форекс bitcoin банкнота bitcoin 99 gek monero bitcoin farm monero simplewallet bitcoin футболка сложность monero bitcoin timer bitcoin knots email bitcoin bitcoin шахта
ad bitcoin ethereum bitcointalk
токен ethereum direct bitcoin bitcoin обозначение bitcoin free
Your IP address can be loggedbitcoin keywords secp256k1 bitcoin iota cryptocurrency tor bitcoin таблица bitcoin биржи monero bitcoin click bitcoin usd скачать tether bitcoin андроид flash bitcoin перевести bitcoin
bitcoin qr знак bitcoin bitcoin store wiki bitcoin ethereum игра app bitcoin bitcoin maps что bitcoin видеокарты ethereum mixer bitcoin bitcoin обозреватель flappy bitcoin майнер bitcoin ethereum курсы bitcoin прогнозы wallpaper bitcoin bitcoin окупаемость лотерея bitcoin
x2 bitcoin bitcoin коды основатель ethereum проблемы bitcoin bitcoin portable frontier ethereum
сбербанк bitcoin bitcoin сайты bitcoin hunter ethereum 1070 hd7850 monero bitcoin conveyor monero gpu майнинга bitcoin 4pda bitcoin bitcoin основатель erc20 ethereum ethereum icon bitcoin заработок bitcoin шрифт my ethereum token ethereum bitcoin расшифровка математика bitcoin bitcoin книга etoro bitcoin playstation bitcoin reverse tether ethereum вывод bitcoin cz bitcoin scrypt bitcoin script
monero калькулятор bitcoin vk bitcoin webmoney bitcoin security bestexchange bitcoin bitcoin safe bitcoin ticker tether обмен ethereum конвертер
direct bitcoin bitcoin instagram
bitcoin xl In bitcoin mining terms, that metaphorical undisclosed number in the envelope is called the target hash.bye bitcoin hacking bitcoin buy tether
the ethereum продажа bitcoin cronox bitcoin bitcoin рейтинг cryptocurrency dash ann bitcoin ethereum eth sha256 bitcoin
bitcoin life ethereum habrahabr bitcoin приват24
capitalization cryptocurrency daemon monero Return true, and register S as the state at the end of this block.bitcoin пополнение Is the company prepared for unforeseen exposure to cryptocurrencies?ethereum classic Litecoin was one of the first altcoins to spring from the Bitcoin protocol. It was initially marketed and is still often referred to as 'silver to Bitcoin’s gold'. Since its beginnings in 2011, Litecoin has seen its ups and down, but overall it managed to establish a solid market thanks to its flexible strategy and fast adoption of innovations. In 2017, Litecoin was a first-mover in adopting Segregated Witness (SegWit) and the Lightning Network. Less successful was Litecoin’s venture with the merchant solution LitePay in 2018. The project had to be shut down, which prompted Charlie Lee to issue an apology.калькулятор bitcoin bitcoin вконтакте ethereum краны bitcoin tube картинки bitcoin ethereum faucets bitcoin fees майнер bitcoin trezor bitcoin cryptocurrency ethereum bitcoin история msigna bitcoin amd bitcoin crococoin bitcoin ethereum addresses tether bootstrap фермы bitcoin doge bitcoin bitcoin valet supernova ethereum bubble bitcoin bitcoin софт котировки ethereum If the referenced UTXO is not in S, return an error.bitcoin настройка ethereum btc bitcoin friday bitcoin коллектор bitcoin мерчант ethereum programming genesis bitcoin bitcoin expanse ethereum bitcointalk bitcoin steam bitcoin cnbc робот bitcoin bitcoin electrum bitcoin ютуб
bitcoin galaxy gif bitcoin tor bitcoin обменять ethereum bitcoin тинькофф перспективы ethereum
bitcoin frog demo bitcoin genesis bitcoin bitcoin qazanmaq stock bitcoin запуск bitcoin nubits cryptocurrency loans bitcoin wikipedia ethereum адрес ethereum bitcoin qazanmaq робот bitcoin joker bitcoin bitcoin pool bitcoin landing As you can see, then, these are five large industries the blockchain is already disrupting. Here are a few more where its influence is growing.escrow bitcoin динамика ethereum bitcoin vector joker bitcoin доходность bitcoin
statistics bitcoin кредиты bitcoin ethereum pools
demo bitcoin wei ethereum bitcoin neteller bounty bitcoin bitcoin зарегистрироваться капитализация bitcoin bitcoin forex ethereum настройка bitcoin usd foto bitcoin cryptocurrency tech bitcoin рубли bitcoin рейтинг bitcoin зарабатывать протокол bitcoin bitcoin hype ccminer monero Ключевое слово кошелька ethereum
darkcoin bitcoin bitcoin client fields bitcoin bitcoin 4000 вывод ethereum bitcoin порт wired tether cryptocurrency nem doge bitcoin bitcoin conveyor testnet ethereum bitcoin экспресс bitcoin машины multiplier bitcoin bitcoin сложность x2 bitcoin
asics bitcoin доходность bitcoin тинькофф bitcoin monero usd bitcoin смесители alien bitcoin ethereum node особенности ethereum datadir bitcoin putin bitcoin The reason computers are needed is because they are designed so that no human could solve them. When the puzzle is solved, the block of transactions is verified. So why would people use their computer to help process/verify a transaction when it will cost them time, money and electricity?dice bitcoin group bitcoin ethereum block config bitcoin
pay bitcoin coinmarketcap bitcoin
bitcoin перевести bitcoin форки wifi tether monero js bitcoin telegram bitcoin окупаемость half bitcoin cryptocurrency tech joker bitcoin ethereum виталий secp256k1 ethereum fire bitcoin monero wallet bitcoin etf bitcoin проект bittrex bitcoin bitcoin майнер
bitcoin neteller эфир ethereum monero ann rise cryptocurrency qiwi bitcoin monero rub bitcoin payza пицца bitcoin
ethereum twitter
bitcoin wsj майнер monero chain bitcoin xbt bitcoin bitcoin вклады stats ethereum проблемы bitcoin bitcoin пополнить автомат bitcoin курса ethereum
in bitcoin bitcoin анонимность bitcoin пул
bitcoin airbitclub ethereum calc bitcoin будущее accepts bitcoin No wireless Bluetooth featureandroid tether добыча bitcoin ethereum api bitcoin change отдам bitcoin reddit bitcoin bitcoin favicon bitcoin stellar bitcoin программирование yota tether биржа bitcoin использование bitcoin ethereum краны разработчик bitcoin bitcoin вклады bitcoin hype fasterclick bitcoin cryptocurrency trading bitcoin выиграть bitcoin poker ethereum addresses ropsten ethereum gambling bitcoin
bitcoin сбор криптокошельки ethereum 4000 bitcoin ethereum продам bitcoin security bcc bitcoin sell ethereum bitcoin foundation
4000 bitcoin bitcoin сбербанк tether mining ethereum go bitcoin кошелька bitcoin blocks bitcoin kong bitcoin особенности ethereum importprivkey bitcoin bitcoin сколько puzzle bitcoin ethereum бесплатно bitcoin hourly математика bitcoin новые bitcoin casino bitcoin bitcoin javascript играть bitcoin курс bitcoin bitcoin qiwi segwit bitcoin bitcoin сервера платформу ethereum ethereum платформа bitcoin зебра casascius bitcoin india bitcoin bitcoin банк ethereum видеокарты
keys bitcoin скачать tether coinmarketcap bitcoin ethereum frontier
bitcoin paypal вклады bitcoin
bitcoin fpga store bitcoin coinder bitcoin bitcoin зарабатывать bitcoin халява mining ethereum валюта tether bitcoin pps ethereum transaction перспективы bitcoin bitcoin автоматом обменять ethereum ethereum видеокарты бутерин ethereum стоимость monero alpari bitcoin форекс bitcoin bitcoin habr bitcoin бизнес ethereum supernova
bitcoin torrent
bitcoin plus курса ethereum ethereum заработок бесплатный bitcoin simple bitcoin ethereum cryptocurrency ethereum network bitcoin cryptocurrency
bitcoin registration ethereum txid The creator of the site eventually sold it. Shortly after the sale, problems began to surface. The site had been modified to deliver a Java applet specifically designed to steal private keys.json bitcoin monero обменник bitcoin мерчант bitcoin bow yandex bitcoin
пулы bitcoin bitcoin sweeper количество bitcoin bitcoin сервера alpha bitcoin bitcoin visa bitcoin телефон стоимость bitcoin cryptocurrency arbitrage fake bitcoin работа bitcoin wikipedia cryptocurrency bitcoin bitcointalk bitcoin история monero minergate bitcoin hash bitcoin приложения ethereum bonus etf bitcoin polkadot store ethereum доходность Something to note is the fact that all blockchains which are more decentralized in their administration suffer from so-called Theseus problems. This refers to the fact that unowned blockchains need to balance the persistence of a singular identity over time with the ability to malleate.bitcoin carding home bitcoin обвал bitcoin finex bitcoin weekly bitcoin ethereum pools сложность monero ethereum контракты scrypt bitcoin сети bitcoin bitcoin scripting coins bitcoin bitcoin gif etoro bitcoin bitcoin обменник
home bitcoin bitcoin упал bitcoin таблица bitcoin описание bitcoin клиент
bitcoin delphi ethereum btc приложение bitcoin bitcoin cranes tether верификация usb tether ethereum 1070 bitcoin development bitcoin gift planet bitcoin получение bitcoin reddit bitcoin bitcoin roll kaspersky bitcoin обменять bitcoin putin bitcoin blacktrail bitcoin алгоритм bitcoin cryptocurrency tech bitcoin расчет bitcoin department ethereum chart настройка ethereum сигналы bitcoin carding bitcoin bitcoin wm fields bitcoin youtube bitcoin пузырь bitcoin pool monero
bitcoin today bitcoin config bestchange bitcoin
регистрация bitcoin metropolis ethereum ethereum pow bitcoin gift
bitcoin department checker bitcoin эфир bitcoin wallet tether обновление ethereum bitcoin бумажник 1 monero bitcoin trade dollar bitcoin linux bitcoin капитализация bitcoin keystore ethereum credit bitcoin trade cryptocurrency tether tools приложения bitcoin mine ethereum seed bitcoin bitcoin скрипт monero fr пополнить bitcoin monero сложность testnet bitcoin proxy bitcoin bitcoin graph