21

Some mining pools have a reward method for which some times are better to mine than others; normally, miners contribute to the pool equally through good and bad times, and their reward averages out to what is statistically expected. Pool-hopping is the practice of mining in a pool only during the good times, and leaving during the bad times; by so doing, a ...


19

P2Pool is a distributed bitcoin mining pool. First, consider checking out the P2Pool Wiki for the latest information. I think it would help to briefly explain it in terms of differences between p2pool, traditional pools, and solo mining. Solo Mining When you solo mine bitcoins, you have control of all aspects of mining. You decide which transactions ...


15

It completely depends on the "pool fee". Theoretically, with a zero percent pool fee, solo mining and pooled mining should, over the long term, produce precisely the same revenue. The only exception is that some (most) pools keep the transaction fees for themselves. If you mine solo, with an expected 5 BTC/day take, that will mean on average you'll mine a ...


14

There are multiple approaches to pooled mining, each with its own benefits and detriments. Assuming you are a dedicated miner who does not pool hop then the scenario you describe should be an "edge case" that should rarely if ever occur. That said, common payout schemes include: PPS - Pay Per Share. Each submitted share is worth certain amount of BTC. Since ...


13

Mining is a zero sum game so pool size has no effect other than to reduce variance not average payout. Your goal would be to acheive 100% of fair value per share. Some factors: Inclusion of block fees. While small pools which keep block fees result in lower payout than solo mining. Merged mining. Currently adds a roughly 5% bonus relative to BTC only ...


12

The size of a pool, its total hashrate and the distribution of hashrate between bigger and smaller miners, have no effect on the rewards you, mining with a specific hashrate, will obtain on average. The total block rewards collected by the pool are proportional to the number of blocks it finds per time unit, which is proportional on average to its total ...


12

The way you describe it it's not possible. The pool sends you the template of the block that you ought to be working on. Should you really find a block it is bound to the block template you received from the pool, i.e., the nonce that satisfies the proof-of-work difficulty is only valid because it is valid in combination with the template. Since the block ...


12

With the Bitcoin Core client, you can create a transaction sending coins to several addresses. On the "Send" tab, there is an "Add Recipient" button at the bottom of the screen; click it as many times as needed to add a form for each recipient. Enter all the addresses and the corresponding amounts to be sent, and you will get a single transaction sending ...


12

TL;DR: Just read the second paragraph of "Concrete Numbers". Wallet Recommendation: Electrum Doing this in Electrum is very simple. Just switch to the Send tab and then (in the menu) choose Tools → Pay to many. The "Pay to" field will become a text area and a popup will open, telling you how to send money to many addresses. Note that the unit of the ...


11

What do the mining workers do differently then if they would be mining solo? A miner that is mining within a third-party pool doesn't need the entire block chain. In fact it doesn't need to be connected to any peers of the Bitcoin network. These miners work entirely outside of the network and could technically just need to communicate to the administrator ...


9

The primary problem is an "attack" of sorts referred to as "Pool Hopping." Pool hopping was first described in a paper by Bitcoin forum member Raulo and between the paper and the ensuing discussion, it was determined that there is a strategy by which pools utilizing a proportional payout method can be exploited to maximize the miner's payout at the expense ...


7

Pool hopping is a mechanism by which certain miners may exploit the payment mechanisms of pools to dramatically increase personal profits. The original mechanism by which funds were distributed to miners is the simplest and most obvious: Each miner submits "shares" of work and when the pool finds a block, the divide the block reward based on the proportion ...


7

The answer is hidden in this forum post here. "You have the same problem that is common in P2Pool threads, your miner is (relatively) slow compared to the size of the pool, as such you are not solving the required 1 P2Pool share every 24 hours (not the work your miner is submitting). You will get paid when your miner solves a share with a difficulty ...


7

Transactions have a list of inputs and a list of outputs. Many transactions just have two outputs, one that pays to the receiver of the funds, and one that sends the leftovers ("change") back to the sender of the funds. Since this is the most common transaction type, this is what most bitcoin interfaces are designed for. With that said, there are a few ...


6

Since November 17, 2011 no fee is charged. Instead an optional donation of 0.5% is sent to the author of P2Pool to support future development. If you don't want to donate to the author you can run P2Pool like this: python2 run_p2pool.py --give-author 0.0 [USERNAME] [PASSWORD] The 0.0 is a percentage of your earnings and can be set to whatever percentage ...


6

If the global network difficulty is D and the difficulty of shares in the pool is d, then the probability that a share will lead to a valid block is d/D. The reward in this case is B, so the average reward per share is B*(d/D). If the operator's average fee is f (so for example f=0.01 means 1% fee), the average reward miners get per share submitted is (1-f) *...


6

I was confused by this as well, but I figured it out through trial and error. AM means arbitrary message (they should have explained this), which is a regular message you send to the forging pool through your wallet. First you must join the forging pool (Account Balance -> More Info -> Account Leasing). No additional message is necessary at this point. ...


5

Luke recently posted that: Fresh-mined coins for payouts were innovated by pools in the following order: puddinpop, Eligius, BitPenny, p2pool.


5

Since pools only receive successfully calculated shares they must approximate your actual hashrate based on the number of shares submitted. Assuming we're talking about difficulty 1 shares, you should be able to approximate hashrate via H = S * 2^32 / T where H = hashrate, S = shares submitted and T = time in seconds. Your estimate will be more accurate for ...


5

You should count each share as valuable as the difficulty of the pre-determined target for that miner. If you count the actual value of the hash it found itself, either the math won't work, or you'll introduce massive variance instead of reducing it (which a pool is intended to do). When you choose a particular share difficulty D, you are restricting the ...


5

Sure, you can use your own blocks to send transactions instead of spreading them out on the peer-to-peer network and let anyone include them in their blocks (may require fees). The upside as you say is that you can save on fees. The downside is that it can sometimes be a long wait, even for a big pool. Still could be a good idea to offer these payouts for ...


5

How does Eligius pay miners directly from the newly generated coins? It simply generates the coinbase transaction to include payments directly to its miners, instead of only a transaction to itself. What are the pros and cons of this compared to how Slush does it? Here are some I can think of: Pros: No transaction fees necessary for these payouts (...


5

Broadly speaking, there are two ways of paying pool miners. The first way is to have a wallet and send payments to miners through that when they ask for them. The second way, which both eligius.st and p2pool use, is to keep track of how many shares people get, and set the coinbase transaction to pay the block reward directly to them once a block is found. ...


4

SMPPS can be hopped, but not in the same way that proportional can. Proportional is hoppable because the expected reward per share is different at different times, so hoppers mine when the reward is high (early in a round) and leave when it is low. In SMPPS, the expected reward is in theory constant, but the maturity time, the time it takes to actually ...


4

SMPPS and ESMPPS (Equalised SMPPS) are "hoppable" only in the sense that they don't explicitly punish hoppers. They are resilient against the prevalent style of hopping but they do nothing to lessen the gains of users who hop away. For this reason, SMPPS (and ESMPPS) are considered "fair" algorithms by hoppers and pools using E/SMPPS are often chosen as "...


4

Where I've seen it, it refers to the mining payment method "Pay per share". This question has an answer that describes what a "share" is. On some mining sites that have existed, the earnings for a share have been essentially paid immediately. However, this method exposes the pool operator to a possibility of loss in the case that, on average, they find ...


4

From the Wiki on P2Pool: Each share contains a generation transaction that pays out to the previous n shares, where n is the number of shares whose total work is equal to 3 times the average work required to solve a block, or 17280, whichever is smaller. Payouts are weighted based on the amount of work each share took to solve - proportional to the p2pool ...


4

You may split the project and create your own distributed pool, but you choose to reap no rewards from doing so (the first 0.5% fee), and without a bonus to the block finder (the other 0.5% fee). The pool combines both fair share rewards and a finder's bonus to compete against other pools. The initiator has so far earned 0.75 BTC for his development and ...


4

The mining pool coordinates the workers. Think of it like a lottery. If you and your friends all buy tickets in the lottery the group has a better chance of winning. To be fair in the lottery example everyone should be rewarded proportional to the amount of money spent on tickets. So if there are 20 tickets for the pool one person purchased 10 and two people ...


4

Well, that post is quite old. Variable-difficulty shares weren't a thing then. That said, I'm pretty sure the fix is as follows: When a share is submitted, the post says you should assign to it a score of 1/D. Instead, assign to it a score of d/D, where d is the share's difficulty. That's it. Also, you should have a look at https://bitcoil.co.il/...


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