WhitePool Brings Mining Pools to the Spotlight: Details
While crypto mining seems to be a relict of better days, it remains a widely-adopted option. Approaches to it are the only things that change.
Mining activity has registered a significant boost after Bitcoin halving, while the network’s hashrate continues to decline and average revenues hit their lows. As mining remains a top crypto income option, the decreased rewards brought efficiency and sustainability to the forefront.
What Is a Mining Pool and How Does It Work
Mining is an energy-consuming process which requires a fair share of time and computing capacities. Let alone the maintenance – sustaining and cooling mining machines, which can become a severe hurdle for generating income. It may take years to make a profit.
As carrying this out individually might be challenging, the community came up with a synergistic approach via mining pools.
A mining pool is a group of cryptocurrency miners who connect their mining machines over a network to boost their chances of earning a reward for opening a new block.
To find a new block’s hash, participants of the mining pool stream their processing power in convergence. If the pool is successful in these efforts, they receive a reward in the form of the associated cryptocurrencies.
Typically, these rewards are divided between the individuals depending on the proportion of each participant’s processing power contribution. The “shares”, as it is usually called by the mining community, are split based on a pool’s payout scheme. The most utilized ones are:
PPS is the most popular method – all thanks to its simplicity. Within this framework, participants are paid for the shares or blocks they contribute to the pool.
- Pay-Per-Share (PPS)
- Full-Pay-Per-Share (FPPS)
- Pay-Per-Share-Plus (PPS+)
- Pay-Per-Last-N-Shares (PPLNS)
FPPS and PPS+ present a generally identical concept. Via this method, pool’s participants receive a proportional amount of the reward based upon the quality of the shares they provided, and the pool pays a transaction fee reward.
PPLNS structure is a bit trickier. When a certain block is discovered, the pool software locates the last blocks participants contributed after the last and new winning blocks were found. The number of trial blocks users discovered between that time determines the payout. This means, if participants disconnect between blocks, they’ll likely lose all the contributions and payouts.
Benefits of a Mining Pool
Crypto mining requires enormous computational power, high energy consumption, and large chronological capacity to profit. All factors combined create obstacles for individual mining and especially its efficiency. But what’s really making solo-mining a tough job is a fierce competition. Throughout the years, the popularity of mining skyrocketed, leading to a vast amount of powerful players in the network.
Mining pools are ultimately the only chance a solo or smaller hash-rate miner can withstand the domination of large mining groups. They also require less in terms of hardware and electricity costs, which increases the likelihood of covering expenses and making a profit for those participating.
Additionally, mining pools provide participants with extra facilities, in the case of WhitePool by WhiteBIT, launched just in recent weeks. Apart from the hashrate of over 6300 PH/s, this SHA256-powered pool also offers 0% fee for receiving rewards, automatic balance updates, and 24/7 multilingual customer support, available in English, Ukrainian, Polish, Turkish, and other languages.
It also offers special programs for VIP-clients, which provides lowered fees for using the pool, stable rewards for miners with powerful hardware, and other features that are soon to be announced.
It also offers special programs for VIP-clients, which provides lowered fees for using the pool, stable rewards for miners with powerful hardware, and other features that are soon to be announced.
The main advantage of WhitePool is the aforementioned FPPS reward method, which ensures that miners are compensated for their work regardless of whether the pool successfully mines a block or not. This system is reinforced by WhiteBIT’s security, verified by Hacken.io and CER.live platforms.
Overall, the pool provides a cost-effective and user-friendly alternative to solo-mining, and highlights the core advantage of mining pools – synergy. The Pool aggregates computing power from miners worldwide, creating a global mining community, enhanced by a smart dashboard, status change notifications, and other organizational tools.
Solo-Mining vs Pooled Mining
While solo-mining has its apparent drawbacks, over time it can still offer higher long-term yield and increased rewards. But mining pools are slowly yet steadily pushing individual mining farms out of the picture due to a more stable system of rewards, lower costs, and energy efficiency.
This leaves solo-mining mostly suitable for large investors with funds that allow them to run it. Yet given the current state of environmental regulation, pool mining may be the option to look out for as its distributed system requires smaller computational power.
Paul Osadchuk
Author
