Sunday, March 24, 2024

Full Pay-Per-Share (FPPS)

by Hideo Nakamura
Full Pay-Per-Share (FPPS)

Full Pay-Per-Share (FPPS) is a method of calculating cryptocurrency mining rewards which takes into account the amount of work done by miners. It considers both the number of shares submitted and the difficulty level associated with each share, resulting in a more accurate reward calculation than other methods such as Proportional or Pay Per Last N Shares (PPLNS).

FPPS was developed to address some of the issues faced by proportional and PPLNS systems, including pool hopper activities and low reward payments for inactive miners. In an FPPS system, all miners are paid according to their contributed hash rate relative to the total pool hash rate. This ensures that no miner receives an unfair advantage over others in terms of rewards.

The primary benefit of using FPPS is that it provides more accurate payouts for individual miners compared to other methods such as Prop or PPLNS since it takes into account not just how many shares they submit but also how difficult those shares were to calculate. As a result, this makes it much harder for malicious actors with high hashrates to take advantage of smaller miners who may have lower hash rates due to lack of resources or technical knowledge.

In addition, FPPS also helps reduce variance when mining because even if there’s a large increase in difficulty level—which results in longer wait times between block discoveries—miners still receive regular payments based on their actual contributions rather than only receiving full payment after finding blocks like under Prop/PPLNS systems. Finally, using this method can help prevent potential losses caused by stale/orphan blocks since these will be taken into consideration when calculating rewards for each miner instead of being discarded entirely like under Prop/PPLNS systems.

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