Energy-carrying Science-Mining Pool Operation Part 1

For a miner to participate in mining, he or she can either purchase mining equipment and mine alone, or join a mining pool to combine one's mining resources with the minerals of other pool miners to increase processing efficiency and increase mining output.

Today, Zaineng will show you how mining pools work.

The world's oldest currency, physical gold, is dug out of the earth through the process of gold mining. It discovers hidden gold that is not yet available. Successful mining can make a single digger or mining company own gold.

Cryptocurrency mining works similarly, in that virtual tokens can be discovered digitally using a computer program. The Bitcoin system has set a limit of 21 million Bitcoins in total.

All of these bitcoins are located within the blockchain system. Most have already been mined and are owned by different participants, while the rest are being mined and will eventually become available.

Difficulty and Easy Mining

Cryptocurrency mining involves two functions - releasing new cryptocurrencies into the system (similar to gold discovery), and verifying transactions and adding them to the blockchain public ledger. It is performed by an internet-connected computer, which is usually equipped with special mining hardware equipment and software programs to control and manage the mining process.

Crypto mining is a computationally intensive, puzzle-solving process that requires high processing power and electricity consumption. The miner who solves the puzzle first places the next block on the blockchain and receives a reward. The reward can include making the miner the owner of newly issued bitcoins or receiving fees associated with transactions executed in the block.

The cryptocurrency discovery process is configured in such a way that if more miners are working, the difficulty level goes up, while a decrease in the number of miners eases the difficulty level. The rewards make mining a profitable activity to earn money. As more miners try to get a piece of the pie, finding new blocks becomes computationally more difficult and requires more computing power. This is usually impractical and too expensive for a single miner.

More efficient mining

Enter the mining pool, which is a group of miners that work together to increase the chances of finding a block within the group of miners compared to a single miner. Through these pools, miners combine their individual computing resources with those of other members, thereby increasing the joint processing power and helping to achieve the desired output faster.

Likewise, a person could combine nine mining rigs, each producing 335 megabytes per second (MH/s) of mining power, to produce a combined output of about 3 gigahertz. The output is faster, and there is a better chance of discovering bitcoins.

However, this concentration of work with better output and higher chances comes at a price. Compared to ownership of rewards obtained through solo mining, rewards obtained through joint mining are distributed among the various pool members.

We will introduce the functions of mining pools and how mining pools share rewards in "Energy Science Popularization - The Operation of Mining Pools Part 2".  

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【Energy Carrier Introduction】

Zionodes was founded in 2020. The core team entered the professional field of Bitcoin mining in 2016. It has now become the world's leading Bitcoin mining machine trading platform, dedicated to providing miners with a one-stop Bitcoin mining service trading platform such as mining machine purchase and mining machine hosting. There are no hidden fees, no complicated contracts, and all costs are completely transparent.

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