The best Bitcoin mining pools
Bitcoin mining pools is a useful method for Bitcoin mine-workers to unite their resources and share their hash power, spreading the reward equally depending on the number of shares that they included in the block solving.
A share is given to members of Bitcoin mining pools that provide the proof of work that their mine-worker solved. Bitcoin mining has started when the difficulty of mining increased to that rate that they needed several years to create a block.
To solve the problem, it tool mine-workers to unite all their resources and generate blocks. Therefore, they can get the reward from Bitcoin blocks on a regular basis and not randomly like one time in a couple of years.
Bitcoin network consensus
If you mine alone, then you need to make sure that you agree with Bitcoin network. The best way to be sure is to use an official BitCore client. If you participate in Bitcoin mining pool, you must know how they behave and whether it matches your philosophy of the network. For example, some of the developers say that they are going to release a special software that can hard-fork the network. This may lead to a big profit loss.
Therefore, you need to make sure that every Bitcoin technology that you stream in the intellectual pool does not enforce the rules of consensus that you do not agree with.
When segwit will become available, you will have an opportunity to mine and pass segwit style blocks. Here you will be able to discover a new special software for mining that was updated to support segregated witness.
Bitcoin Core 0.14.1
Bitcoin Knots 0.14.1
Please keep in mind that the software supports PPC and has to be updated to support BIP 9 and BIP 145. All programs connected to GBT support have already been updated and ready for use. Actually, you can test the infrastructure updates.
Bitcoin mining pools
There is a big variety of Bitcoin mining pools. Of course, the majority of customers tend to choose the most popular ones, however, it will be better to choose smaller mining pools to avoid a negative hash power and secure your device.
You can use a few mining pools to spread your rates. Here you will find out how to distribute mining pool hash rate. Review some option given to you for distribution. Find out the names of pools that are considered the most reliable. The mining pools that are available below are fully validating with Bitcoin Core 0.11 or later:
This is Bitcoin exchange, a mining pool, and a wallet. The organization is located in China. At the moment, the mining pool controls 15% of the network hash rate.
The pool is maintained by Satoshi Lab that is based in the Check Republic. It was the first mining pool that provided service for customers. It controls 7% of the network’s hash rate.
The mining pool was involved in a conflict with AntBleed, therefore, a lot of customers believe that to use this mining pool is not smart and trustful. However, the experts say that Antpool has not done any mistake and it was just one of the functions that had to be checked.
The mining pool was one of the pioneers in the industry. The pool was created by the developer if Bitcoin Core. Right now, the mining pool controls only 1% of the hash rate of the network.
At first, this mining pool was very reliable and stable, however, now it controls less than 1%.
The mining pool was found in 2014 and today it offers 3% of networks’ hash rate.
This is the second biggest mining pool that manages to control 25% of hash rate. Its users’ interface is set in the Chinese language which complicates the work for customers from English-speaking countries.
The mining pool also comes in the Chinese language which does not make using the interface convenient if you speak English. It controls 7% of hash rate.
This mining pool is private, therefore, cannot be joined.
Methods of payment for Bitcoin mining pools
To define your share from mined bitcoins can be a little bit tough. At the moment, the experts are considering easier ways to calculate the profit. Some of the most popular calculation systems are called PPS (pay per share) and DGM. The first system guarantees the payment for each share you put.
The system of payment PPS requires a big reserve that is 10,000 bitcoins. This is needed for ensuring the stability and avoid a bad luck. For this very reason, a lot of mining pools do not want to support the system. One of the pools provided by PPS is EclipseMC.
The second system that is called DGM is much more popular because it offers a good balance between short round and long round blocks. However, the customers of the system will have to wait for confirmations long after block generating.
This payment method for a mining pool guarantees instant payout for each share that was solved by the mine-worker. The mine-workers are paid from the pool’s balances and can immediately withdraw their payout. This way ensures a minimum variance in payment for mine-workers and the biggest risk for pool’s operator.
The name of the method is the proportional approach which allows proportional spreading of reward when a block is found among all workers based on the number of shares that was found by each worker.
The full name of the method is pay per last n shares is similar to the proportional method, however, instead of counting the number of shares in the round it looks at the last n shares.
The double geometric method is a hybrid approach that allows the operator to take the part of the risk. The operator receives the part of payouts in the time of short rounds and returns it during long rounds for payment normalizing.
Shared Maximum Pay Per Share uses a similar approach to PPS, however, it never pays more than the pool earned.
Equalized Shared Maximum Pay Per Share reminds of the previous payment method, however, it distributes payments equally between all mine-workers in Bitcoin pools.
Recent Shared Maximum Pay Per Share is also similar to SMPPS, however, it sets priorities in the relation of the last Bitcoin mine-workers.
Capped Pay Per Share uses the system of reward with maximum payment for share that will pay Bitcoin mine-workers as much as possible using the profit from finding blocks.
Bitcoin Pooled mining uses the system where old shares from the beginning of a block round receive less than the newest shares. This reduces the chance of being fooled by the mining pool system.
Pay on target make payouts in relation with the difficulty of work returned to the pool by a mine-worker, rather than the difficulty of work done by the pool itself.
This approach uses the system in relation to proportional distribution and weighed by the time of providing work. This process the latest shares more expensive than the older shares. Also, it is estimated by the time.
This payment method for Bitcoin mining pool was developed by the creator of BFGMiner. When the block rewards are spread, they are distributed equally between all shares from the moment of the last valid block, and shares that were included in old blocks are cycled in shares of the next block. Rewards become bigger only if a mine-worker earns at least 67108864. However, if a mine-worker dies not provide a share within a week, the pool will send the remaining balance no matter its size.
The system joins medium-sized pool without fees and distributes 1% of each found block which allows your share to grow faster. Administration of Bitcoin mining pools uses some of bitcoins that were generated when the block was found. Every mining pool has more chances to make bitcoins no matter their power.
Hopefully, this information was useful to you and you will define the most suitable way to pay for using a mining pool.