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​Cloud Mining vs Pool Mining: The Role of Mining Pools

​Cloud Mining vs Pool Mining: The Role of Mining Pools

​Cloud Mining vs Pool Mining, which one mining mode should be chosen? As the number of miners participating in mining increases, the computing power of virtual currency continues to increase, and a single device or a small number of computing power mining machines cannot obtain block rewards provided by the currency network on the digital currency network. At this time, the mining pool was created. The generation of the mining pool breaks through the geographical restrictions and combines scattered miners and mining farms to package and operate together, and the connected mining farms are responsible for the competition for bookkeeping rights.

In this mechanism, the block rewards generated by mining pool mining will be distributed according to the proportion of each miner's contribution to computing power. Cloud Mining vs Pool Mining. Compared with mining alone, joining the mining pool can obtain a more stable income. These are just a brief overview of the basic principles and properties of the mining pool, the actual situation will be very complicated. All in all, the mining pool is a fully automatic mining platform, that is, the mining machine is connected to the mining pool; the mining machine provides the computing power for the mining pool.

Cloud Mining vs Pool Mining: Mining Pool Classification
With the development and growth of mining pools, it is not easy to choose a suitable mining pool. According to the distribution method of the mining pool, it can be divided into four types. Cloud Mining vs Pool Mining. According to its operation mode, the common Bitcoin mining pools are as follows: PPS, PPLNS, DGM, prop, etc.
PPS: Pay-Per-Share method. Cloud Mining vs Pool Mining. This method is to pay every share immediately. Therefore, cash can be withdrawn immediately, without waiting for block generation or confirmation, which reduces the risk of miners. This can avoid manipulation by the mining pool operators behind the scenes. Cloud Mining vs Pool Mining. To solve the situation of PPLNS that sometimes has high profits and sometimes no profits, PPS adopted a new algorithm. Based on your computing power in the mining pool, PPS estimates the minerals that the mining pool can obtain every day, and gives you a stable income every day.
PPLNS: (The purest team mining) The luck component of this model is very important. Cloud Mining vs Pool Mining. The income is paid based on the past N shares. Cloud Mining vs Pool Mining. This means that once all miners find a block, everyone will Individuals contribute by themselves, but this kind of mining pool has certain lag inertia.
Cloud Mining vs Pool Mining - If the mining pool fails to find a block for a day, then everyone will not have any income that day. The income will not be distributed until the block you participate in is fully mined, and your mining income will be delayed to a certain extent.
If you no longer use the PPLNS mining pool to mine, assuming that the shares you contributed are still there, you will still get dividends for some time after that, until your contributed shares are settled.
DGM: Double Geometric Method. Double geometric system. Combining PPLNS and Geometric reward types, allowing mining pool operators to avoid some risks. Mining pool operators collect part of the block rewards shipped in a short period and then normalize it later The past value is returned to the miner, like capacitor charging and discharging. If you are lucky, you will be given fewer points per block, and if you are lucky, you will be given more points.
PROP mode: The generation of bitcoin blocks is: the mining pool discovers the block and broadcasts it to the entire network. After 120 confirmations, the block will be generated.

Cloud Mining vs Pool Mining - The difference between mining and PPS mining is: in the PPS mode, the coins of the mining pool are generated from real blocks. Before the real blocks are generated, the mining pool will pay the miners in advance for every time the miner contributes a little bit of speed. Cloud Mining vs Pool Mining - The PROP model is: After the mining pool has generated a real block after 120 confirmations, Bitcoin will be allocated to the miners according to the contribution of each miner.
No matter what kind of mining pool we choose, the most important principle is to obtain the maximum benefit and minimize the risk.