The Ultimate Guide To Understanding Bitcoin Mining
This payment method guarantees payments and leaves the miners with very little risk of not being paid for their contribution. The downside of this scheme is the high fees that the pool owners charge, to mitigate the risk they take by paying regularly.
Proportional: Just like in PPS, miners submit shares along the block finding interval. The more hashing power you've got and the longer you mined for the cube, the more shares you submitted. Once a block is found, the pool pay the miners according to the amount of shares they obtained.
But in this payment system, the value you will receive for each share will equal the block rewards divided by the total number of shares filed by all miner. This means that the more miners that join the pool, the lower the value of each share you recieve.
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Score-based: This payment method was designed to prevent miners from pool-hopping. Your mining time and hashing power are calculated into a scoring hash speed score. The longer you stay on the pool, the higher your score is and the higher the value of the  shares you get. Once you stop mining, your score gets smaller and the value of your stocks drop accordingly.
Pay per standard N Shares (PPLNS): In PPLNS, miners only get paid for stocks received during a predefined window that ends in the block solving. Unlike other payment schemes, shares received out of the window will not be rewarded at all. This window can either be defined as a period frame (uncommon), or with a certain number (N) that represents the last stocks received up to the block solving. .
For example, if N equals 1 Billion, once a block is found only the previous 1 Billion shares will be rewarded. While not defined anywhere explicitly, N is generally set as a multiple of this mining pool issue using a constant, usually 2.
Due to this, PPLNS can be known as Pay per Luck Shares. When implemented properly, miners cant predict the right time to join, so they can either get greater rewards if they got to get more stocks within the previous N stocks, or get no reward at all when they didnt.
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Announced in 2010, SlushPool was the very first Bitcoin mining pool and undoubtedly led the way for many other mining pools ahead of time. Founded by SatoshiLabs current CEO Marek Palatinus (aka Slush), its located in the Czech Republic and follows a score-based method to dissuade pool-hopping.
This is a medium-large sized pool. SlushPool claims a 2% commission from every block solving benefit. my company SlushPools dashboard is quite user friendly and provides excellent detail with regular updates. While it may not be the biggest of the Bitcoin mining pools, its certainly considered one of the best.
Antpool is a Chinese Bitcoin mining pool run by Bitmain Technologies. It's moderate in size. One advantage Antpool has is that you can choose between PPLNS (0% fee) and PPS+ (2% fee), both of which have their own advantages.
In regard to payments, theyre created once per day when the amount exceeds 0.001 Bitcoin. Those new to Bitcoin mining will appreciate the clean interface. The dashboard clearly shows earnings and hashrates. There are also many different security options, including two-factor authentication, email alerts, and pocket locks.
Known for their wallet and their own blockchain explorer, BTC.com have been around for a while, before opening a pool in 2016. Owned by Bitmain Tech, BTC.com is the largest pool around, at the time of writing. BTC.com possess their own payment method, FPPS, which like PPS+ include TX fees in the payouts, along with the block reward.
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F2Pool is a medium-large pool established in 2013. Operating a PPS+ reward program, F2Pool takes a 2.5% fee, which is a bit on the high side.
Also known as KanoPool, Kano CKPool was founded in 2014. This small Bitcoin mining pool offers PPLNS payment model, charging a 0.9% fee.
With regard to payout, per each block found you will need to wait +101 block confirmations to get paid, which could take some time.
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This is a comparatively straightforward pool with an interface that could do with an update as its not the most user friendly. It doesnt have much in the way of features, but it does have two-factor authentication for an extra layer of security.