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Pooled mining will not have a significant effect on the expectation of your payouts it can decrease a bit due to fees , but it can dramatically decrease their variance. All reward systems use the concept of "share", a hash which is easier than the real difficulty and proves you have worked on finding a valid block. Your reward when the pool finds a valid block depends on the shares you submitted. Every share will give you, on average, the block reward minus any pool fees divided by the difficulty.
If not, your variance will not depend on the size of yourself or the pool, but rather on the scoring method used. Increasing the size of the pool will always decrease the variance, but at some point you will have diminishing marginal utility. What you described is a transitional proportional payout scheme.
Your payout is proportional to the amount of work that you did for any given block. In your example, miner1 got In this example miner1 still gets Now it was Way less per hour because the block was very unlucky.
Traditional Pay-per-share PPS is a different system where you get paid by the number of shares you submit regardless of if a block is found. Say difficulty is 20, so the price per share is 2. In scenario 1, miner1 makes In PPS, your pay per hour is always the same even in the short term, but the drawback is that the pool might go bankrupt if there are too many long blocks.
In proportional, your pay per hour in any given 24 hours varies based on if blocks are lucky or unlucky and the drawback is that pool hoppers skip town on long blocks. In MaxPPS, your pay per hour in any given 24 hours may also vary if the pool is small enough that it isn't reliably finding multiple blocks per day, but the variation will lower than in proportional because the pool has withheld some of the payment you would have received from short blocks so that it can pay you more on long blocks.
The benefits are that the pool can't go bankrupt, and there is no longer any incentive for pool hoppers to switch to another pool on long blocks. Retrieved from " https: Navigation menu Personal tools Create account Log in. Views Read View source View history. Sister projects Essays Source. This page was last edited on 27 June , at Content is available under Creative Commons Attribution 3. Privacy policy About Bitcoin Wiki Disclaimers.