What is pit mining? How much can the mining pool earn?

  • By bitcoincasts
  • December 14, 2022

It is reported that what is ore pool mining? How much can the mining pool earn? Mining is one of the ways to earn cryptocurrency. When mining, it is necessary to confirm the virtual currency transaction. In the transaction process, complex operations are run. Miners use computers to perform these operations, and then obtain virtual currency rewards. So what is mining in the ore pool? Now let's get to know.

What is pit mining?

Ore pool mining is very similar to personal mining in some aspects, but the latter is completed separately, while the former involves mining with others. In the process of mining in the ore pool, all miners unite and combine their computing power to increase the chances of digging a block. They operate similarly to equity pools through the equity certification mechanism.

In short, strong overall computing power will bring greater profit opportunities. But you must be a miner, so you have the necessary hardware to enter the ore pool. Therefore, in this respect, mining in the ore pool is similar to mining alone. You cannot avoid the upfront cost of cryptocurrency mining by adding ore pools. When a block is successfully mined in the ore pool and the reward is paid, the reward will be distributed among the members of the ore pool.

But not all ore pools are the same. You can join a proportional ore pool, in which members who contribute computing power will get shares until they find and successfully mine blocks. The miners are then rewarded in proportion to the number of shares they hold. This means that if you do not contribute too much computing power to the ore pool, you will not get too many rewards when a block is mined.

There is also a share based payment pool, also known as the PPS pool, which operates like a proportional pool. Miners will still receive a proportionate share of the energy they provide to the pit. However, even if there is no mining block, these pools will provide instant fixed rewards for members.

Finally, there are peer-to-peer or P2P ore pools. These focus on decentralization and use a separate ore pool blockchain to prevent ore pool operators from acting for their own interests and help avoid network failures caused by a single failure.

In any case, the rewards obtained when a mining pool digs out a block are often not evenly distributed, and the miners who contribute more computing power will get greater returns. Please remember this before entering the swimming pool. But now, let's continue to discuss the important part: can mining in the ore pool earn the same amount of money as mining by one person?

How much can the mining pool earn?

Although mining alone can produce huge returns, it cannot provide the same reliable income as the ore pool. Because the mining pool members combine their computing power and increase the chance to find blocks, the regularity of the payment you receive is likely to be higher than when you mine alone.

However, the income you get from mining in the ore pool will be lower than the income you get from digging blocks yourself. Therefore, there are some trade-offs between the two mining methods. If you want reliability and regularity, please select ore pool mining. However, if you would rather gamble to get a big payout, you can try mining alone.

Speaking of this, I believe you have a certain understanding of what is pit mining and how much money can be made by pit mining. In general, ore pool is a method of mining by combining multiple personal mining machines. Multiple mining machines cooperate to generate a block, and then reward each block according to the computing power they contribute. Ore pool mining effectively reduces the granularity of rewards generated by blocks, which can be distributed more smoothly in groups over time.