PPS and PPLNS mining: which is better to choose?

When choosing a place of work, a beginner miner thinks about the question of what is more profitable than pps or pplns? How to choose the right pool and understand the accrual scheme? In the early days of the blockchain industry, miners mined digital currency alone and the block reward went to whoever found it first. But after a year and a half, the first mining pools appeared. Translated from English, the word pool means a pool, a pool or a common boiler.

From a technical point of view, a pool is serverdistributing the cryptographic task between the participants. Each miner works on a certain fragment and when one of them finds a hash signature, the pool administration distributes the money among all participants. How this happens and how the two most popular payment systems (pps / pplns) differ, we will now tell you.

What are PPS and PPLNS payments?

Nowadays, even the owner of super-powerful equipment cannot quickly solve the problem of calculating a block alone. The pool finds the block much faster, and even the weakest devices contribute to the cryptographic computation process. Whoever found the hash signature the award is shared by everyone.

However, it would be unfair to take and simply divide the money equally. To determine how much each participant earned, the pool takes into account the number of sent shares (share). When the line appears in the mining program window share acepted this means that you got the right to a piece of the pie and after the administration of the pool receives the coins, the distribution system will send your share.

None of the balls you send may not be a complete block solution at all, nevertheless you honestly did your job and you will be paid for it. The larger the ball, the more and the percentage of reward, but the balls do not always have a fixed value. In the process of the formation and development of the mining industry, the creators of the pools have developed several algorithms for evaluating shares. The most common are pplns and pps. Each system has its own supporters and opponents. Let’s try to figure out which of them is right.

How to find out on what basis the pool pays out

The payment system for miners is usually indicated either on the pool’s main page, for example, like Antpool or Ethermine. Sometimes the payout model is listed in Getting started (like nanopool), Payouts, or FAQ.

Important! No adequate pool will hide this information, if it is difficult for you to find it, contact support.

PPS

The Pay Per Share system was widespread in the past, but gradually the owners of the pools began to switch to other systems for calculating rewards.

Principle of operation

PPS is a block reward distribution method where each share is counted at a fixed price. In addition to the number of shares, the complexity of the network and the size of the block reward are taken into account.

Pools list

Advantages and disadvantages

At first glance, such a reward system seems to be very beneficial for miners, because not a single share is wasted. Your balance is constantly growing, all that remains is to collect the minimum auto payment amount. But the pools, insuring themselves against risks, raise the commission, and if the reserves are depleted, they freeze payments until the end of the round.

In a pool with a lot of mining rigs, the rounds between blocks will be very short. The entire reward will be taken by large miners, and if you have a very weak hash rate, you will not have time to send a single share.

Important! In the current period, many pools have abandoned this payment system, or like, for example, Antpool allows miners to choose pplns vs pps. Please be aware that PPS is always a higher commission, and if you have only one small rig or one ASIK, then it is better to choose an alternative option. Provided, of course, that you are not constantly jumping from pool to pool.

PPLNS

A complex calculation algorithm, but more acceptable for pools, is beneficial for miners who do not change their place of work without a good reason.

Principle of operation

It can take a very long time to tell in all the details about pplns, what it is, and how the reward is shared. From a technical point of view, the system is very complex, so let’s briefly express its essence. With this payment option, balls sent only at certain time intervals (shifts) are taken into account.

The cost of the balloon is set by the administration of the service. If you work hard and suddenly switch to another pool, then, despite the already sent shares, you may not get anything at all.

Pools list

Advantages and disadvantages

Miners who prefer to work in one place for months with pplns will get more than with pps. Balls are more expensive and pool fees are lower. But, keep in mind, money will come to the wallet only after the pool finds the block, and then on condition that you send the required number of shares.

Conclusion

In practice, the difference in payment for pplns vs pps, or their modifications (PPS +, SMPPS, FPPS, HBPPS, RBPPS, PPSW) is insignificant. The main thing is to choose the most promising crypto coin and find a pool with a fairly high hash rate, where they do not try to pocket a few percent of your shares.

Owners of ASIK miners can connect to Antpoool and compare the advantages and disadvantages of these accrual schemes without switching to another server. Happy mining!

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