Due to the increasing difficulty of the Bitcoin network in recent years and the increase in the number of miners, mining operations alone and with one device are not very profitable. So many people prefer to use bitcoin mining pools. In the following, we will pay more attention to how these pools work.
Bitcoin mining pools
Bitcoin mining pools are designed to increase the chances of miners succeeding in extracting a block. Bitcoin mining pools are virtual places where miners work to extract blocks. At the beginning of the creation of the Bitcoin network, it was possible to extract not only individually but even with a regular computer. But today, extracting bitcoins directly is almost impossible. Because as the number of miners and the processing power of hardware increases, it will be more difficult to solve complex equations to extract a block. This so-called extraction difficulty is embedded in the network to regulate the bitcoin production flow. This difficulty, as well as the initial and current costs of extracting bitcoins, have made people more inclined to join extraction pools than before.
Features of Bitcoin mining pools
When we say pool size, we mean the amount of miners or the amount of pool processing power. The larger the pool, the more regular the payouts and the higher the credit, but they may be less expensive than smaller bitcoin mining pools. Smaller pools may also pay more, but they are not as regular and large as large pools. Different bitcoin mining pools receive different fees from zero to 4 percent. When choosing a pool, credit is the most important thing to consider to make sure nothing happens to your money and they don’t raise your money or that they are not easily hacked. So before you join a pool, research it. Our suggestion is to work with pools that are old and have failed the test.
How do extraction pools reward you?
Different bitcoin mining pools adopt different methods and policies to reward miners. The first method is to pay per share. In this method, the share is determined for you according to the computing power that you provide to the network. In this method, miners receive their share regardless of whether a block is extracted or not. To achieve such a system, Bitcoin mining pool operators pay the miners’ share of their account. Another method is ratio-based payment. In this way, the more computing power you provide to the pool, the more rewards you will receive. The difference between this method and payment per share is that you will only receive a reward if you extract the block. The third method of payment is based on points. This method is designed to prevent constant pool replacement. In this way, the more time you spend joining the pool, the more points you have and the more rewards you will receive. The last payment system is the last share. In this method, the miners are rewarded only for the share received through the predefined window. This window can be a time frame.