Mining Pool
A mining pool is a joint effort between miners, where they combine their computing power to increase the chance of finding a block. The reward for each miner is proportionally split based on how much work they contributed. Mining pools are an effective way to increase the chances of earning rewards from mining cryptocurrencies, although it comes at the cost of reduced rewards compared to solo mining.
Types of Mining Pools
There are several different types of mining pools available depending on specific needs and capabilities. Here’s a brief overview:
– Standard/Traditional pool – This type uses a proportional share system which pays out based on your contribution to the total hashing rate within that particular pool. The more hashing power you contribute relative to other users, the greater your payout will be in comparison with them when blocks are found and rewards distributed.
– Pay Per Share (PPS) – This system offers an instant payout for every valid submitted share regardless if it was actually used in successfully finding blocks or not. It’s more reliable than traditional but comes with higher fees due its higher efficiency rating as well as additional security measures implemented by some pools like DDoS protection and layer 2 encryption protocols such as SSL/TLS connection support among others.
– Double Geometric Method (DGM) – This is an advanced payment scheme which includes two separate components; one being “pay per share” while other part provides extra payments for shares that have been stale or orphaned during block discovery process resulting in improved reliability over time compared against regular “pay per share” systems alone without sacrificing any security measures either side may take into account before joining such network setup like mentioned earlier on this article section regarding those same topics itself too..
