There are more interesting mining pool methods that are adopted by the crypto miners to mine the blocks at the time of the crypto mining period, some of them are very popular and ensure a fair reward distribution process while others are just efficient to reduce the mining load per person.
In our previous blog, we have already discussed the mining pool, and its ways of working, till now mining pool has only been understood based on its working mechanism and the way it affects the profitability of crypto miners. Now we will be discussing the methods which are implied at the time of executing the mining pool. If you are interested in bitcoin trading, read more about the regulation benefits of the bitcoin market .
Proportionality-based mining pool
This mining pool works on certain protocols and policies which are listed as below:
? The proportion of the contributed processing power is checked for the reward distribution.
? Rewards are given at the end of the mining when the blocks have been successfully mined and discovered by the mining pool.
? Proportion is calculated as the ratio of individual share upon the total amount of share, and the value which is obtained is then distributed in form of rewards among the members of the mining pool.
Peer-to-peer mining pool
Like its name, the functionality also holds greater importance based on the distributed networks of miners.
? P2P mining pool ensures the distribution of responsibilities of the serving pool members.
? Which not only eradicates the autonomy of the serving pool members but also provides a fair advantage to all the miners to get equal shares of profit.
? This decentralization helps to stop cheating and online frauds that can happen in the form of crypto scams like the failure of the port system which acts as the junction of all the digital networks, if it fails the entire system and working will collapse.
? Miners work on the subsidiary blockchain called a side chain where the time spent on the one block mining is up to 30 seconds.
? Rewards are directly proportional to the number of shares generated for a mined block.
Geometrical mining pool:
This type of mining pool uses the scoring method to evaluate the number of shares a targeted block gets, these two functions are taken as the base where one function is fixed and the other is variable.
? A targeted score is set with some certain number and all the miners have to achieve that score.
? A mathematical formula is used to find the reward amount earned by each miner.
? Several mining rounds are performed to find out the rate of change in scoring value, once some miner scores the certain value that gets added with the initial value scored by the miner.
Pay-per-last mining pool:
In this method, the miners are awarded based on their last scorecard, the average of their last scorecard is computed and assumed as the main calculating point.
? Unlike the Geometrical mining pool method, this method doesn’t calculate the scores of each round completed.
? It is considered as the most profitable round for all the crypto miners, which doesn’t depend on round performances, instead, it is based on the last number of shares earned on a specific block.
Bitcoin mining pool:
This method is great to avoid and stop pool cheating incidents and can be securely operated among the miners.
? Instead of depending upon the old shares record earned by the miners, it is based on the fresh shares earned by the crypto miners when they successfully mined the block at the starting of the mining process.
? It not only saves the credibility of block mined but also gives a chance to miners who were running on lower profitability to earn more profit while working on new Bitcoin nodes.
Solo mining pool
Previously discussed in our blog, we have mentioned this in brief where a miner instead of combining its processing power with others chooses to work independently and alone without contributing to a group of miners. Here no distribution of rewards occurs as the miner is himself the all-rounder from providing resources to mine to successfully being able to mine the block.