Understanding Bitcoin Mining Fundamentals Explained
This payment system guarantees payments and leaves the miners with hardly any risk of not being compensated 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 frequently.
Proportional: Just like in PPS, miners distribute stocks along the block finding period. The more hashing power you have and the longer you mined for the block, the more shares you filed. Once a cube is found, the pool cover the miners according to the amount of shares they received.
However in this payment method, the value you will get for each share will equal the block rewards divided by the total number of shares submitted by all miner. This means that the further 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 period and hashing power are calculated into a scoring hash rate score. The longer you remain on the swimming pool, the greater your score is and the greater the value of the  stocks you receive. Once you stop mining, your score gets smaller and the value of your shares drop accordingly.
Pay per Last N Stocks (PPLNS): In PPLNS, miners only get paid for stocks received during a predefined window that ends in the block solving. Unlike other payment schemes, stocks received out the window will not be rewarded in any way. This window can either be defined as a time frame (uncommon), or by a certain number (N) that represents the last shares received up into the block solving. .
By way of example, if N equals 1 Billion, once a block is found only the last 1 Billion shares will be rewarded. While not defined anywhere explicitly, N is usually set as a multiple of the mining pool issue using a constant, typically two.
Due to this, PPLNS can be known as Pay per Luck Shares. When implemented properly, miners cant predict the right time to join, so that they can either get greater rewards when they got to receive more shares within the previous N stocks, or find no reward at all if 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 to come. 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% fee from each block solving benefit. SlushPools dashboard is quite user friendly and provides excellent detail with routine upgrades. While it might not be the biggest of those Bitcoin mining pools, its certainly considered one of the very best.
Antpool is a Chinese Bitcoin mining pool operated by Bitmain Technologies. It's medium in size. One advantage Antpool has is that you can pick between PPLNS (0% fee) and PPS+ (2% fee), each of which have their own advantages.
In terms of payments, theyre created once per day if the amount exceeds 0.001 Bitcoin. Those new to Bitcoin mining will love the clean interface. The dashboard clearly shows earnings and hashrates. There are also many different security options, including two-factor authentication, email alerts, and wallet locks.
Known for their wallet and their own blockchain explorer, BTC.com have been around for some time, before opening a pool in 2016. Owned by Bitmain Tech, BTC.com is your 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 situated in 2013. Operating a PPS+ reward program, F2Pool requires a 2.5% commission, which is somewhat on the large side.
Also known as KanoPool, Kano CKPool was founded in 2014. This small Bitcoin mining pool provides PPLNS payment model, charging a 0.9% commission.
With respect 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 upgrade as its not the most user friendly. It doesnt have much in the way of features, but it does possess two-factor authentication to get an extra layer of security.