To mine Bitcoin easily through the mining pools, miners cooperate and use their hashing power jointly so that it is possible to solve blocks and receive rewards.
To receive rewards, the participants are required to deliver evidence that their miners actually solved the block. As a consequence of the difficulties which presented themselves during the solo mining process, mining with pools started. Mining pools revealed a way to produce blocks like clockwork in a fast and efficient manner.
If your preference is mining solo then it is necessary to check if a consensus with the network has been reached. BitCore client can help with that.
Even if you are a member of the pool, you should be assured that the hash power you are directing to the mining pool is not in the dispute with the consensus rules. Numerous attempts to hard-fork the network took place and could have caused a serious financial impact. This is exactly why it is your duty to comply with the rules.
Segregated Witness Protocol
Segregated Witness is a type of protocol put into operation to deal with the Bitcoin transaction plasticity problem. If activated, the framework of data storage changes in conjunction with the transaction verifying mechanism for the high-grade network nodes. Here is a list of the mining software which supports SegWit protocol.
- Full nodes:
- Mining software:
- Pool software:
- Relay software:
In fact, this protocol has been enabled on the testnet. Consequently, you have a chance to test the infrastructure update through mining with the insignificant hash rate involvement. Also, the Bitcoin Core 0.13.1 regtest innately supports SegWit.
In Search of the Bitcoin Mining Pool with the Best Payout
With the massive amount of pools to select from, it seems like the best Bitcoin mining pool is the largest one. When, in fact, it is a more secure option to pick the smaller pool which will be beneficial to the network safety. Small mining pools can be of use if you are interested in eliminating the damage which can be caused by the consolidation of the hashing power. If it is widely distributed the network is going to stay safe.
How the Hash Rate Is Allocated
Pick the Best Bitcoin Cash Mining Pool
All the pools from the list below are validating a vast majority of blocks with Bitcoin Core 0.11 or later versions:
BTCC is an exchange based in China. It is also a wallet and a mining pool. Presently, it is accountable for 15% of an overall hash rate.
Slush Pool is another Bitcoin mining predecessor located in the Czech Republic. The pool owns approximately 7% of the network hashing rate.
Antpool [NOTICE] is a Bitmain company. This pool is considered untrustworthy because of the scandal which was connected with malware issues and allegations. It caused a serious disturbance in the community. The issue itself was jeopardizing the Bitcoin network.
Eligius is another Bitcoin mining pioneer. This pool controls merely 1% of the hash rate.
BitMinter once was the primary Bitcoin mining pool. Although, the hash rate it used to have decreased drastically and now it is lower than 1%.
Kano CKPool is a well-known industry representative. Its hash rate makes up about 3%.
F2Pool is a notorious mining pool which owns around 25% of the overall hash rate. It is also based in China and for that exact reason cannot be easily enrolled with.
BW Pool is another China-based pool, controlling 7% of the network hash rate.
Bitfury positions itself as a blockchain technology established in Georgia. Their pool is privately held and presently not available for miners.
Payment Methods Explained
Obviously, you are aware of several major payment methods involved in the process of share calculations. PPS (Pay-per-Share) and DGM (Double Geometric Method) are the most favored. The PPS method implies that mostly all the risks are on the pool with no negative influence on payment consistency.
Although, PPS normally requires around 10,000 BTC stored to ensure that the potential risks could be addressed. This is why most of the pools obviate the need to have PPS as a payment option.
PPS is an approach that guarantees a payout for every share solved, ensuring the speed of the payments.
PROP means the Proportional approach and implies fair reward distribution amongst the miners whenever a block is discovered. Based on this method, the distribution of rewards is elaborated through the number of shares discovered by each miner.
PPLNS stands for Pay-per-Last N Shares and is associated with PROP. Basically, it considers the most recent N shares discovered without regard to the limits of the round.
DGM, or Double Geometric Method, is a complex method connected with the difference in shares, which is not associated with the operator risks and at the same time it has a subsequent capacity to take the risk incompletely, aspiring to decrease the variance associated with a pool.
SMPPS, or Shared Maximum Pay-per-Share, has a lot in common with PPS. Although, this method has a payment restriction which is based on the amount earned by the pool. None of the payments exceed that threshold.
ESMPPS (Equalized Shared Maximum Pay-per-Share) is an approach similar to SMPPS with the main difference being the equal distribution betwixt the miners within one Bitcoin pool.
RSMPPS stands for Recent Shared Maximum Pay-per-Share is also very similar to SMPPS. Nonetheless, the priority is put exclusively on the most recent miners.
CPPSRB means Capped Pay-per-Share with Recent Backpay, a method based on the Maximum Pay-per-Share approach. This method ensures the processing of countless payments.
BPM, or Bitcoin Pooled Mining, implies that the shares located at the beginning of the block do not weight the same as the recent shares. It decreases the odds of the system to be tricked.
POT stands for Pay on Target and has PPS principle at its core. In a nutshell, all the payments are made in accordance with the work complexity scale returned to the pool by the miner.
SCORE method implies the even distribution of the rewards weighed before the moment the work is submitted. According to this approach, recent shares are believed to be more valuable. For this reason, the scores submitted are proportional to the rewards computed.
The ELIGIUS method incorporates the main advantages of BPM and PPS approaches. The rewards are equally distributed amongst all shares prior to the distribution, starting with the last valid block. This system has a minimum threshold in accordance to which the rewards are paid.
Triplemining can be named a Bitcoin mining pool best payout. In a nutshell, it assembles pools of average size that have no mandatory fees and redirects 1% of each discovered block. In return, the growth of shares accelerates up to the point which cannot be surpassed by any other method listed above.