[Decryption] Introduction to mining revenue model and its applicable scenarios

PPS, full English name: Pay Per Share.

For mining pools that use this method to distribute mining revenue, when a miner's mining machine submits 1 share ( i.e. the calculation result of the mining task ) , the mining pool calculates the mining revenue that can theoretically be obtained from this share based on the mining difficulty at that time, accumulates it into the mining account, and distributes it on time.

The characteristic of the PPS income model is that the mining income is only related to objective factors such as the mining difficulty at the time of mining, the computing power of the mining machine and the network conditions. It does not change due to the actual income of the mining pool or the luck value, and can ensure the long-term and stable mining income of miners.

For PPS mining pool, regardless of whether the valid blocks actually mined by the mining pool reach the theoretical level, it is necessary to pay the miners the mining income, and bear the risk of isolated blocks or low luck value. Therefore, the mining fee is slightly higher.

PPLNS, English full name: Pay Per Last N Shares

The mining pool that adopts this method to distribute mining income. When the mining machine submits a share, the income of the corresponding share is not calculated immediately. Instead, after the mining pool receives a total of N shares, the total number of coins mined by the mining pool during the period of receiving these N shares is counted, and then the mined coins are distributed according to the proportion of the number of shares submitted by each miner in these N shares.

The characteristics of the PPLNS profit model : The distribution of mining income has a lag, and the income will not be distributed until the mining pool has submitted N shares in this round.

Since PPLNS distributes the coins actually mined by the mining pool, it is affected by the mining pool's luck value, and the miners' distributed income may be a lot or a little, and the volatility is relatively large. According to probability , the mining income of PPLNS and PPS should be the same over a long period of time.

Due to the PPLNS model, the mining pool will distribute as many coins as it mines. It simply provides mining pool services and does not bear the risks of orphan blocks and low luck values ​​(blocks produced are lower than the theoretical value). The mining fee is relatively low.

SOLO, as the name implies, is a single mining operation. It does not mine with other computing power received by the mining pool. It receives mining tasks issued by mining nodes alone. If a block is mined, all corresponding mining income (i.e. block reward + mining fee) will be enjoyed by the miner alone. If no block is mined, there will be no income.

The mining pool charges a certain percentage of mining revenue as a service fee for providing mining pool services.

If the miner's computing power is low, SOLO mining may not be able to mine blocks for a long time. Without block rewards, there will be no profit from mining. Therefore, use the SOLO mining mode with caution.

The characteristics of the SOLO mining model are that the SOLO mining model is a high-risk, high-return profit model, and the profit and loss are at your own risk. Miners enjoy all block production benefits, including block rewards and mining fees. Once they are lucky and the block production is higher than the theoretical value, they can obtain super high mining benefits.

However, it is also possible that no blocks are produced for a long time, or very few blocks are produced, and the output is far lower than the input.

PPS+ and FPPS are revenue models derived from PPS. They are slightly different, but the long-term benefits are basically the same.

The PPS+ model is based on the PPS model, and the mining fees mined by the mining pool are distributed according to the proportion of computing power contributed by the miners on that day.

Compared with the PPS model, an additional portion of mining income is added.

FPPS mode stands for Full PPS. This revenue model also adds the distribution of mining fees on the basis of PPS. However, the mining fees it distributes are based on the average mining fee ratio of the entire network on that day, not the actual mining fee income of the mining pool.

Due to the inconsistent distribution rules of mining fees in the FPPS and PPS+ modes, the daily mining income will deviate due to the different mining fee income of the mining pool. However, in the long run, excluding the influence of luck, the mining income of the two mining modes is basically the same.

The PPLNS profit model is accidental and delayed. It is not recommended for miners who engage in short-term speculative mining or rent computing power to mine small currencies with the same algorithm during high-yield periods.

In addition, for miners with small computing power or those who are new to mining , it is recommended to use the PPS mode to obtain relatively stable mining income.

If you want to try your luck , you can use the PPLNS mode to mine . Maybe in the short term, the mining pool will frequently produce blocks and you can get more mining income. Who can say for sure?

However, it is not recommended to use the PPLNS mining pool with too small computing power. Small computing power means a smaller possibility of block explosion. Without block explosion, miners will not be able to share the mining income. Please choose carefully.

If the miner's computing power is large enough to independently generate blocks every day, he can choose SOLO mode mining , and all mining income belongs to himself, the income is intuitive and transparent, and there is a chance to get block explosion income. At present, the basic computing power of mainstream large currencies (BTC, LTC, ETH, etc.) is too large, and the probability of a single miner's computing power to achieve independent block generation is too small, so it is no longer suitable for SOLO mode mining.

For currencies with higher transfer fees such as BTC and ETH, the mining fee ratio is also relatively high. Using PPS+ or FPPS mode for mining can generate 1-2% higher income than PPS mode, or even higher (if it is during a period of frequent transactions, this ratio will be even greater).

Therefore, miners can choose a suitable profit model based on the currency and their own actual situation to obtain stable and relatively high mining income.