Mining through Bitcoin pools makes it possible for miners to organize, merge their resources and use their hashing power for the purpose of solving blocks and dividing the rewards owned.
To get rewards, the pool members need to provide a proof their miners solved the block. Mining through pools started because of the complications in the individual mining process. Pools provided a way to generate blocks faster and receive rewards on the ongoing basis.
If you prefer mining solo there is a need to confirm that you reached a consensus with the network. BitCore client is one of many ways to do that.
If you are a member of the Bitcoin pool, you should be certain that the hash power directed to the pool does not conflict with the consensus rules either. There have been multiple attempts to hard-fork the network which most likely would have a destructive financial impact. For that reason, it is always your responsibility to follow the rules.
SegWit is a protocol update which was implemented to eliminate the the Bitcoin transaction plasticity issue. When it is activated, the structure of data storage within the block changes along with the mechanism which verifies the transactions for the high-grade network nodes. The mining software listed below supports this protocol.
- Full nodes:
- Mining software:
- Pool software:
- Relay software:
This protocol has been activated on the testnet. Therefore, you can consider checking the infrastructure update you get on the testnet by mining with the minor hash rate involvement. As it happens, the regtest of Bitcoin Core 0.13.1 natively supports SegWit.
Looking for the Best Bitcoin Cash Mining Pool
There is a tremendous quantity of pools you are able to handpick from. Regardless of whether the biggest ones seem like the most lucrative options, it is safer to choose the small ones in the interest of network safety. Smaller pools will help you prevent the damaging consolidation of the hashing power. The wider the dissemination is, the better it is for the network.
Hash Rate Allocation
Go with the Best Bitcoin Cash Mining Pool
The next pools are validating the most of the blocks with Bitcoin Core 0.11 or later versions:
BTCC is basically a China-based exchange, a wallet, and a mining pool. It presently has around 15% of a total hash rate.
Slush Pool is the notorious pool, a pioneer in Bitcoin mining. It is responsible for around 7% of the network hashing rate.
Antpool [CAUTION] is a part of Bitmain and, therefore, believed to be unreliable due to the “Antbleed” report based on the malware related accusations. This case caused a commotion within the community, and, if true, it was seriously endangering the Bitcoin network.
Eligius is another industry pioneer. The hash rate controlled by this pool is only around 1%.
BitMinter used to be the major Bitcoin mining pool. However, its hash rate decreased to 1%.
Kano CKPool has been in the industry for around 5 years and is responsible for about 3% of the total hash rate.
F2Pool is a well-known mining pool which has near 25% of the network hash rate. It is another representative of China-based pools and, therefore, makes it challenging for miners to enroll with.
BW Pool was established China and it is one more pool that has a Chinese interface. It controls 7% of the overall hash rate.
Bitfury is not just a pool. It is a full-service blockchain technology established in Georgia. The pool itself is privately held and, therefore, is not available for miners to join.
Main Payment Methods
You are probably aware of the main payment methods used for the calculations of the shares. The most popular ones are PPS (Pay-per-Share) and DGM (Double Geometric Method). PPS payment method usually means that most of the risk is on the pool and there are no grounds to doubt the regularity of the payments.
However, the PPS payment method usually demands around 10,000 BTC stored so that the possible risks could be handled. This is the main reason for many pools to avoid having PPS as an option.
PPS payment method ensures a payout for each solved share so that miners are able to receive payments fast. Moreover, this method puts most of the responsibility on the pool itself.
PROP stands for the Proportional approach and proposes equal reward distribution between the miners upon the discovery of a block. The basis of the distribution process is the amount of shares found by each miner.
PPLNS means Pay-per-Last N Shares. This payment method and PROP are alike. This method is based only on the last N shares found regardless of the round limits.
The Double Geometric Method (DGM) is a mixed approach which is connected with the share-based difference without the operator related risks and followed by the ability of the operator to assimilate the risk partially, which helps to lower the pool related variance.
SMPPS stands for Shared Maximum Pay-per-Share and applies an approach similar to PPS. However, it never allows paying above the amount Bitcoin mining pool has actually earned.
ESMPPS stands for Equalized Shared Maximum Pay-per-Share. This approach is a lot like SMPPS, but the main difference is the even distribution amongst all the miners within the Bitcoin mining pool.
Recent Shared Maximum Pay-per-Share (RSMPPS) is another approach similar to SMPPS. However, the system puts a priority on the latest miners.
CPPSRB (Capped Pay-per-Share with Recent Backpay) is based on the reward system called Maximum Pay-per-Share. This reward system is able to make an unlimited amount of payments.
BPM stands for Bitcoin Pooled Mining. It uses a system in which the shares at the beginning of the block do not have as much weight as the latest ones. It helps to decrease the chances for the pool system to be cheated.
POT (Pay on Target) is basically a PPS method based on the payments made in compliance with the level of the work complexity reimbursed to the pool by the miner.
The SCORE approach implies the equal distribution of rewards with the submission time considered. Simply put, the most recent shares are more valuable than the earlier ones. Therefore, the rewards are computed proportionally in line with the scores reported.
ELIGIUS method was created to integrate the best qualities of PPS and BPM approaches. Before the distribution starts, rewards are proportionally allocated between all the shares, starting with the last legitimate block. In addition, there is a required minimum earning which allows the rewards to be actually paid.
Triplemining is Bitcoin mining pool best payout. Basically, it gathers average-sized pools that have no obligatory fees required and repositions 1% of each block discovered. In turn, the share growth speeds up even more than it possibly could with any of the approaches listed above.