How can I mine BTC using a mining machine?

What is a mining pool? How are mining pools profits distributed?At this point, the arithmetic power of the largest BTC sites is 84EH/s. You have an ant S17Pro ...

Nov 10,2022 | Aviva

What is a mining pool? How are mining pools' profits distributed?

At this point, the arithmetic power of the largest BTC sites is 84EH/s. You have an ant S17Pro mining machine with an arithmetic power of 53TH/s, which accounts for 0.000063% of the year's total arithmetic power. Mining machine mining just two conclusions: dig out the blockchain to acquire at least 12.5 BTC, or do not dig out the blockchain llgo, nothing can be gotten. A mining equipment running for a day will use a lot of water and electrical costs. As a result, solo mining may be unable to extract the blockchain for an extended period of time, if not forever, leading to the formation of mining pools.

Mining pools are a method for centralizing miners' arithmetic power by aggregating thousands of little pieces of arithmetic power. Connecting mathematical power to a mining pool provides miners with reasonably steady mining money. Furthermore, miners just need to care about hash calculations and not about anything else, which increases mining efficiency. So, once again, how are the miners' revenues distributed?

The most prevalent mining pools have four income distribution models: PPS, PPLNS, PPS+, and FPPS, which are all discussed here.

PPS method (PayPerShare), based on the reasonable amount of tasks submitted by the mining machine and the challenging ratio of major sites, mining pools will be the total number of modern logical burst block rewards of this pool minus the mining pool mining service fees, and miners to carry out liquidation.

Miners daily profits = basic theory mining pool daily earnings * miners in the mining pool arithmetic share + fixed immobile service charge - mining service fee

Along with more and more mining pools, the arithmetic market is becoming increasingly competitive; many mining pools have replaced the PPS method; as a result of this model, mining pools bear a greater risk; even if the mining pool does not mine the blockchain for an entire day, miners can still earn money.

PPLNS (PayPerLastNShare): Based on the fair number of jobs submitted by the mining machine and the difficult ratio of major sites, the mining pool will be the entire number of particular burst block rewards of this pool less the mining service cost, and miners to carry out liquidation.

Miners daily profits = specific mining pool mining rewards * specific transaction fee rewards * specific mining pool mining rewards - mining service fees

In this rate model, the miner's rewards are directly connected to the total amount of particular blocks burst by the mining pool. The more blocks produced by the mining pool, the more money you will earn. In this approach, the risk to the miner's profits coexists with the pool.

PPS+: This is also a fusion of the PPS and PPLNS two interest rate methods, which means that the burst block rewards are based on the pool's base theoretical burst block total to carry out PPS clearing, but the miner's fee / transaction costs are based on the pool specific burst block obtained by the miner's fee to carry out PPLNS clearing.

Miners daily profits = basic theory mining pool mining rewards * miners in the mining pool arithmetic share + particular transaction fee rewards * miners in the pool arithmetic share - mining service fees

Today, not many mining pools use this strategy. The major reason is that transaction fee income is not very significant, and blockchain reward revenue is still far away, so the practical relevance of the two distinct settlements is not very great.

FPPS: For a period of time in the past, the base theoretical burst block reward for mining pools was carried out in line with the PPS clearance.

Miners daily profits = base theory mining pool mining rewards * miners in the mining pool arithmetic share + base theory transaction fee rewards * miners in the mining pool arithmetic share - mining service fees

At this point, the popular mining pools use FPPS and PPS in a large percentage of the time, the daily income is more steady, and the biggest disadvantage is that service costs are rather expensive. The exact clearance form must also be selected by combining your individual mining cycle time with the total size of the mining pool's operation, service costs, and many other criteria.