Ethereum Mining Pool Review | Issue 1 | It turns out that the Ethereum Mining Pool has always owed miners a share of the profits!

A summary of the fees, settlement methods and minimum payment amounts of major Ethereum mining pools.

Remark:

1. HBPPS: Based on the PPS model, orphan block rewards are excluded, and uncle block rewards will still be issued.

2. Viabtc's Coinbase fee is PPS4%, and the mining fee is 2% PPLNS.

3. okPool directly deposits funds into the exchange wallet, so there is no minimum payment amount.

4. MiningPoolHub is a GPU machine gun pool.

5. The statistical time is 2019.08.02. The actual rate is subject to the announcement of the mining pool.

6. Taking stability and returns as reference, FPPS is the best choice.

Horizontally compare the Ethereum network's mining pool connection types, mining pool hashrate and block generation percentages, and mining pool front-end data display; compare the mining pool's soft power.

Due to the lack of professional graphics card mining management tools in the early days of Ethereum mining, as well as miners’ demand for anonymity, traditional Ethereum mining pools mostly adopted an address anonymous mining model.

Traditional ASIC mining pools usually adopt a sub-account mining model. Miners register in the mining pool, apply for a sub-account, and fill in the sub-account information in the mining machine to mine.

Anonymous address mining means that you don’t need to register a mining pool. You can directly fill in the wallet address in the mining tool and connect to the mining pool.

In essence, the information associated with the mining pool is the sub-account name and wallet address.

Summary of mainstream Ethereum mining pool connection modes:

After Ethereum reduced the reward, the normal block reward is 2ETH. The uncle block reward is related to the number of intervals between referenced blocks. The more intervals, the less reward.

Mining pool address block explosion situation (last 7 days)

Etherscan mining pool block statistics

The percentage of blocks (excluding uncle blocks) produced by mining pools on the 7th shows that the computing power is mainly concentrated in mainstream Ethereum mining pools such as Sparkpool, Ethermine, NanoPool, and F2Pool.

The percentage of uncle blocks in mining pools (in the past 7 days)

Etherscan mining pool uncle block explosion ratio

Since most Ethereum mining pools settle their revenue, the uncle block rate reward is related to the mining pool revenue. There are no packaged transactions in the uncle block, so in fact, the uncle block can be understood as a kind of orphan block with rewards.

The percentage of empty blocks in mining pools (in the past 7 days)

eth.btc.com empty block percentage

Empty blocks refer to blocks that do not contain any transactions. The proportion of empty blocks is related to the mining pool’s revenue.

The richer the data displayed on the front end of the mining pool, the more it demonstrates the mining pool's confidence in its own technical strength and data transparency.

The relationship between share, computing power and revenue is as follows:

The size of the computing power determines the number of shares. The mining pool calculates the revenue based on the number of shares and reversely derives the mining pool connection computing power data.

Due to the difficulty of Ethereum's block-by-block model, the calculation formula for share and income is as follows:

PPS income = ∑ (sum of the difficulty of the block task cycle share i) / (the difficulty of the whole network of the block task i)

In simple terms, each block is a mining cycle. During a mining cycle, the mining pool issues tasks of different difficulty to the mining machine, and the mining machine submits shares according to the task calculation. The mining difficulty of each share is determined by the task issued by the mining pool. The number of shares in each cycle * the difficulty of the share is used as the contribution value of the mining machine. The contribution value / the mining difficulty of the entire network in the current mining cycle is the proportion of the miner's income in the block. Finally, multiply it by the income of the block, and the accumulated income of each block is the daily income.

The Ethereum PPS mining pool needs to calculate the revenue of each miner for each block, while the PPLNS mining pool only needs to calculate the revenue of the exploded block.

The relationship between the three types of shares and Ethereum mining income will be introduced in the later cold knowledge .

Traditional Ethereum mining pools and traditional ASIC mining pools show a two-tier differentiation trend. Mining pools using the PPLNS model all provide share data, but all mining pools do not give the corresponding difficulty value of the share . This makes it impossible to accurately measure and compare the actual income of the mining pool with the income of the standard difficulty unit share (same difficulty share).

However, the mining pool using the PPLNS model did not provide a daily average computing power income bill.

Orphan blocks are caused by network delays at mining pool nodes or other technical reasons that result in the mined blocks not being accepted by the Ethereum network. Therefore, even if the miners perform calculations and submit their shares, the mining pool cannot obtain this part of the reward.

However, uncle blocks of Ethereum do not contribute to the Ethereum ledger because they do not contain transactions, and the reason why uncle blocks are generated is due to mining pool technology. Uncle blocks can actually be understood as orphan blocks with certain benefits.

Sir Tiao consulted the relevant mining pools in Bitcoin mining, and they said, " Since orphan blocks are caused by the mining pool, it has nothing to do with the quality of the shares submitted by the miners. The mining pool will bear part of the loss of orphan blocks. As long as the miners submit shares normally, they will get benefits regardless of whether they are orphan blocks or reward blocks ."

Shouldn’t the mining pool distribute the uncle block revenue to miners according to the normal block revenue? This unspoken industry rule has always been ignored by miners.

If the mining pool improves its technical capabilities, it can reduce the uncle block rate from a technical perspective. It is a bit unreasonable for the mining pool to take responsibility for this and let us miners bear the losses all the time.

Those mining pools that adopt the HBPPS model (which excludes orphan block rewards based on the PPS model) are evading their responsibility to upgrade their technology.