Choose the right mining mode and you can find a beautiful wife easily

When Bitcoin was first created, it was all done by Satoshi Nakamoto himself. At that time, you could easily mine Bitcoin using a computer CPU. Later hardware upgrades all used Bitcoin core to mine directly, which is now called SOLO mining. But now if you use the SOLO mode to mine alone, you may not be able to mine a single coin for several years.

As it has evolved to the present, miners often work together to contribute computing power, and then after mining coins, everyone shares the profits according to their computing power contributions. This is the so-called mining pool.

What is Pool Mining?

In fact, mining pools are not a new product. The early mining pools were developed by some geeks on the Bitcoin forum "bitcointalk". They were a method of combining small amounts of computing power for joint operation. It can be said to be very primitive.

Later, it developed along with CPU mining, GPU mining, and ASIC mining. It can be said that the technology is not complicated, nor is it a new thing. After all, integrating resources and forming economies of scale and agglomeration effects are common sense. As the computing power of Bitcoin increases, people gradually realize the superiority of mining pools, which makes the income more stable, and mining pools become popular.

If you still don't understand, I can explain it in more detail. For example, if the total computing power of the Bitcoin network is 1000k, I will invest in a mining machine with a computing power of 100, which can occupy one ten-thousandth of the computing power of the entire network. In the case of Solo mining, on average one Bitcoin can be mined for every 10,000 blocks, that is, one Bitcoin can be mined every 70 days (Bitcoin produces one block every 10 minutes).

But this is a probability, and you may not be lucky enough to mine, and the income is uncertain. But I will find another 9 miners with 100 computing power, and we will reach an agreement. There are 10 people in total. If any one of them mines, he will share it with everyone according to the computing power. In this way, can a block be produced in 7 days? What if there are 1,000 people? Then on average, you can get one Bitcoin in 16 hours. As a member of the team, your personal income will tend to be stable. This is the advantage of the mining pool.

The above is just a basic description based on the principle of mining pools. The actual situation is more complicated. There are many modes of mining pools in reality. Many miners are confused when they see various modes and don’t know what to choose. Now I will tell you which mode has the highest profit.

The most profitable mining mode in different situations

PPLNS mode for team mining

Let’s first talk about the most familiar mode, the PPLNS mode. This is also the most primitive mining mode, where everyone forms a team to mine, and after mining and producing blocks, the bonus for producing blocks is distributed according to the contributed computing power.

But there is a problem with this, which is that the income is unstable. No matter what currency it is, the block generation is a matter of probability. When you are lucky, a block will be generated after a while of calculation. When you are unlucky, you may not generate a single block for half a day. It is also possible that 5 blocks will be generated today and 3 blocks will be generated tomorrow.

The size of the income is completely related to the blocks mined. If the mining pool mines more, the distribution will be more, and if it mines less, the distribution will be less. If you are unlucky and don’t mine in a day, the income will be zero. In the long run, the income is similar, but there are too many uncertainties in the short term. However, the handling fee of this model is relatively low, which is suitable for miners who are stable in one mining pool. Random switching will reduce income, because if you want to stabilize the income, you have to extend the time axis.

Another problem is that mining pools may steal computing power. Since the blocks mined are not fixed every day, the mining pools can hide some of the profits privately, and there is nothing that can be done about it.

Advantages: Low handling fees and stable returns in the long run

Disadvantages: Unstable short-term returns, cannot switch mining pools at will, mining pools may steal computing power

PPS model with fixed income

Thus, the PPS model was born. The English name of this model is Pay Per Share, and the income is calculated entirely based on the amount of tasks you submit.

Although the daily income of the mining pool is not fixed, in the long run, the income is fixed and there is not much deviation, just like flipping a coin, one or two is accidental, but the probability of heads and tails 10,000 times tends to 50%. So it is still possible to calculate how many blocks are produced per unit of computing power every day. Taking Bitcoin as an example, in each difficulty cycle, the corresponding relationship between difficulty, computing power and blocks is consistent, and the income in a cycle can be inferred based on the difficulty.

In order to ensure the stability of everyone's income, the mining pool calculates in advance how many coins you can get for your computing power, and directly pays you the coins corresponding to the computing power, so that the miner's income is fixed and there is no need to bear any risks. It is equivalent to selling the computing power to the mining pool, and the mining pool is responsible for its own profits and losses. Even if there is no block in a day, it is okay, and there will still be income. But if the income is high one day, then the mining pool will make money at this time. This model is suitable for miners who frequently switch mining pools, and it also prevents the mining pool from stealing computing power.

Advantages: Fixed income, you can switch mining pools at will, and mining pools cannot steal computing power.

Disadvantages: High handling fees, no high-yield rewards

Hybrid Mode PPS+

Finally, we will introduce a hybrid model, which is also a popular model now, combining the advantages of the PPS and PPLNS models. This kind of income is equivalent to the sum of the block reward and the transaction fee. The block reward is fixed, and it is calculated in advance in the form of PPS to ensure the stability of income. The transaction fee is calculated in accordance with PPLNS. Combining the two, the income is greatly increased.

Of course, there are some other niche modes, which Uncle Mine has listed below. You can choose according to your own situation, hoping to find the mining mode that suits you best.