Mining cryptocurrency can be possible if you work by yourself, although many miners have been joining their efforts lately for increasing profits. Joining a mining pool is a great solution for those who want to combine all mining resources with other people and increase the mining efficiency greatly. When Bitcoin was first launched, any computer owner could join this initiative and remain competitive among all crypto miners in the world. However, the race towards acquiring the best mining equipment has begun. As a result, mining by yourself cannot carry you for long even if you have a few devices developed specifically for mining. This is why so many cryptocurrency miners prefer using mining pools nowadays.
What You Should Know About Mining Pools
So much energy and money are required to mine a single block nowadays. You can spend all your savings on a supreme-quality mining device and still get so little out of it. Mining pools offer the opportunity to mine and receive your rewards consistently instead of mining tirelessly with a PC and getting nothing out of it. There are numerous mining pools available as of now, and their number continues to grow. EMCD pool is one of the most popular choices for miners in Asia and Eastern Europe.
A mining pool is an opportunity for miners to join forces for more effective work. For example, if you are mining solo, and your personal hashing power is 1% of the whole network, you can generally hope to mine one block out of a hundred. However, mining even this single block takes a long time before you can get your money’s worth.
Now, combining efforts with other miners increases your chances of mining a block greatly. This means you can have a steady income thanks to other miners that work alongside you. If you and other miners in a pool manage to mine one block per day, you can split the income right away. In addition, joining the mining devices allows generating more mining power with better output. Not only this makes mining faster but also more efficient as the chances of finding a block to mine increase as well.
The Way Mining Pools Function
A mining pool works as a platform to join all miners together and manage their activity. Thanks to such a coordinating platform, it becomes much easier to track everyone’s performance, share the rewards of each mined block, supervise all miners’ hashes, etc. However, this convenience might come with a price, and miners usually have to pay a certain fee to enjoy all the benefits of the pool.
Mining in the pool can be possible in two different ways. The first one implies receiving a specific range to work with for each miner. When the work is done, a pool member can request the next range and so on. With the second approach, members can set their own amount of work and proceed with it. The system will make sure that two or more miners will not work on the same range for maximum efficiency.
Sharing Rewards Between All Miners
Each pool has a special mechanism that allows determining the amount of effort that each miner has contributed to discovering a single block hash. The share of work from each mining device becomes visible. Shares can be accepted and rejected. The rejected ones are not helpful for mining blocks, which is why they are not considered when getting a reward. The accepted shares, on the other hand, become rewarded and provide benefits for miners.