Disadvantages of Bitcoin Mining Pools

How about “One” btccom mining pool

BTC.com mining pool (Pool.BTC.com) is currently the best SHA256 algorithm currency mining pool. The reasons are as follows:
–The highest BTC computing power mining pool: BTC.com mining pool BTC computing power has exceeded 9000P from around 400P in June 2018 to May 30, 2018. In less than a year, the computing power More than 20 times over.
–Technical gurus lead the team, with superior strength and stable performance.
–A variety of auxiliary tools to realize the convenience of mining management (mining pool app + batch management tools), improve mining efficiency (intelligent agent + VIP) Server + multi-node global layout)
–the best non-advertising customer group in the whole network directly talks to customers through QQ, WeChat, Telegram and other channels, and the most professional operators answer more than 16 hours a day for users to dig Various problems encountered in the mine.
–The best revenue distribution model: FPPS
–The most scientific workload statistics method, which records and statistics each share corresponding to its mining difficulty, which is fair.
–The most complete peripheral factory, which produces all kinds of exquisite and interesting peripheral products throughout the year, and sends them to the miners from time to time.
–Currently supports SHA256 series such as BTC, BCH, UBTC and other multi-currency mining, and supports one-click switching to the target currency.
–It is reported that other algorithmic currencies will also be launched gradually.
Extension information: How to choose an Ethereum mining pool?
Select a mining pool. First of all, it is necessary to understand the allocation mode of mining pools. At present, the income distribution modes of mining pools are: PPS, PPLNS, PPS+, FPPS, etc. The specific various modes will not be explained here, and you can find them online.
So, for those who mine Ethereum ETH, the common distribution model is the PPS and PPLNS distribution model. If you are pursuing short-term high returns and require immediate results, you can consider mining pools in the PPS distribution model to obtain income by contributing your own computing power, but generally you need to pay a higher handling fee, usually 3%-5% The transaction fee, after the mining pool deducts the transaction fee, is your income.
2. What are the advantages and disadvantages of the existence of mining pools for Bitcoin?
The existence of the mining pool reduces the difficulty of mining virtual digital currencies such as Bitcoin, lowers the threshold for mining, and truly realizes the concept of Bitcoin mining that everyone can participate in. However, its drawbacks are also very obvious, because the computing power is connected to the mining pool, and as a mining pool, it will have an extremely large computing power resource. In the Bitcoin world, computing power represents the right of bookkeeping, and computing power represents everything. If the computing power of a single mine reaches more than 50%, it is easy to launch a 51% attack on Bitcoin and other similar virtual digital currencies, and the consequences are terrible:
1. The monopoly of mining rights will make the remaining 49% The mining pools with no computing power eventually withdraw from the competition and go bankrupt in an instant. The mining pool’s computing power exceeds 50%. If a 51% attack is launched, it is easy to occupy all the effective computing power of the entire network.
2. The monopoly of bookkeeping rights, double payment through 51% attack, and multiple use of a sum of money will directly destroy Bitcoin’s credit system, etc. and make its credit disappear.
3. Monopoly of distribution rights. Because a single mining pool (or an alliance of several mining pools) occupies the entire network’s computing power through a 51% attack, the remaining mining pools can be quickly squeezed out and shut down. Because there is no competition, mining pools can distribute their own revenue, charging miners hefty fees and taxes.

『Ⅱ』What is the difference between Bitcoin mining pools

The main reason is that the distribution mode of bitcoins obtained is different: according to the operation mode, common There are several types of Bitcoin mining pools in the company: PPLNS, PPS, DGM, P2Pool, etc.

PPLNS: (the purest team mining), the full name is Pay Per Last N Shares, which means “according to the past N shares to pay the income”, which means that once all miners discover a block, everyone will allocate the currency in the block according to the proportion of the number of shares contributed by each person. (share means share)

In the PPLNS mode, luck is very important. If the mining pool can find many blocks in one day, then everyone will get a lot of dividends. If no block can be found, then everyone will have no benefit.

PPS: Pay-Per-Share method—This method is to pay for each share immediately. The payout comes from the pool’s existing bitcoin funds, so it can be withdrawn immediately without waiting for blocks to be generated or confirmed. This prevents mining pool operators from manipulating behind the scenes. This approach reduces the risk to the miners, but transfers the risk to the operators of the mining pools. Operators can charge fees to cover the losses that these risks may cause.

In order to solve the situation of PPLNS that sometimes has high profits and sometimes no profits, PPS adopts a new algorithm. Based on the proportion of your computing power in the mining pool, PPS estimates the amount of minerals that the mining pool can obtain every day, giving you a basic fixed income every day.

How about it?�Feel like this is a stable job? In fact, in order to avoid the risk of losing money, mining pools in the PPS model often charge a high handling fee of 7%-8%.

DGM: Double Geometric Method. Double Geometric Method. Combining PPLNS and geometric reward types, allowing mining pool operators to avoid part of the risk. Then return the normalized value to the miner later, like charging and discharging the capacitor, if you are lucky, you will be given less points per block, and if you are unlucky, you will be given more points.

175btc: The mining nodes of 175btc work on a share chain similar to the Bitcoin blockchain. Since there is no center, there is no DoS attack either. Unlike other existing mining pool technologies – each node works on a block that includes payment to the owner of the previous shares as well as the node’s own bitcoin. 99% of the reward (50BTC + transaction fee) will be equally distributed to the miners, and the other 0.5% will be rewarded to the person who generated the block.

Bitcoin Home Network has a detailed introduction.

“Three” Bitcoin mining pools recommend which one is better

This is the share of mining pools in the past three months:

Is Huobi mining pool a scam?

Huobi.com is a domestic bitcoin trading platform

『Wu』 Which bitcoin mining pool is better

It doesn’t matter, because the number of data blocks in all mining pools is globally uniform (each data block contains about 25 bitcoins). The only thing that matters is which mining pool is more stable and will not be disconnected due to a large number of visits. In fact, there are very few dropped calls.
The more established mining pools are very stable, such as bitcoin.cz and BTC

『Lu』 Why is bitcoin mining in the mining pool, can’t you mine by yourself?

Mining is actually competing for block packaging rights
Since there are tens of thousands of miners competing for the packaging rights, the probability of a single miner grabbing the packaging rights is very small, and the output is very unstable. It is possible to grab it once an hour after the dog shit, or it may not be able to grab it for a year. once.
In order to stabilize the mining output, miners often choose to join the mining pool for mining. The mining pool integrates the computing power of a large number of miners and occupies a certain share of the total computing power of the entire network, thus obtaining a relatively stable mining output. After the mining pool charges 2%~4% of the mining pool fee, the output will be distributed to the miners according to the miners’ computing power.
This is like buying a lottery ticket alone and it is difficult to win the lottery, so the mining pool organizes a lot of people to buy a lottery ticket, and then distributes it to everyone according to the investment amount.

『柒』 Is Binance Mining Pool reliable?

Binance Mining Pool entered the top ten of Bitcoin mining pools only a few weeks after its launch. In December reach the top three positions.

『渌』 What is a Bitcoin mining pool, and which mining pools are more powerful

Mining is perhaps one of the most important components of the Bitcoin ecosystem one. Miners need to solve complex mathematical calculations to ensure the smooth execution of transactions. These problems are so complex that they are difficult to solve even for extremely powerful computers. Computers need work and luck to solve these math problems, just like miners dig underground. The odds of getting it right are about one in 13 trillion.

Bitcoin mining serves two purposes. First, by solving mathematical problems, Bitcoin miners can verify transaction information, thus guaranteeing the security and reliability of the Bitcoin payment network. Miners are the ones who ensure that transactions are accurate and that there are no “double-spends”.

Secondly, when a computer solves these complex mathematical problems on the Bitcoin network, the system produces new Bitcoins, similar to the process of mining gold from the ground. This reward is called the “block reward”, and its amount is periodically cut in half after an event called the “halving”. The concept of newly mined bitcoins is an important part of the bitcoin protocol. The bitcoins miners acquire are brand new and have never been in circulation before.

Since miners will eventually sell that bitcoin, this is also a great source of supply and liquidity. As Chainalysis reported, many digital currency exchanges rely on miners to receive bitcoin and increase liquidity on the exchange. Typically, exchanges receive about 88% of their Bitcoin from other exchanges, with Bitcoin miners being the largest source of the remaining percentage. As you can imagine, there is intense competition among exchanges to receive bitcoins directly from miners.

Further zooming in on the map, the majority of mining activities take place in only 4 provinces, the first two being Xinjiang and Sichuan, which account for nearly 10% of all Bitcoin mining in China half. Electricity is cheap in these areas and the weather is cold. This helps keep mining profitable and equipment cool during Bitcoin mining’s 24/7 operations.

But for digital goodsIn terms of currency issuance, this is nothing new. For years, China has been a major market for bitcoin miners due to its cheap electricity and abundant resources. Companies that account for a significant portion of the Bitcoin network’s computing power, such as Bitmain, f2pool, and Canaan, are all based in China.

Whether this is a negative or positive message depends on your point of view. But for a decentralized, distributed, permissionless network, a geographic area spanning multiple entities is healthier for the entire ecosystem.

『玖』 Do you know how much there is in the Bitcoin mining pool?


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