Mining is a verification process for transactions that happen. When miners have done the mathematical component behind the transaction, they verify whether they should add it to the Blockchain’s public ledger. Verifying transactions is colloquially known as “finding blocks” in many crypto spaces. Contrary to popular belief, the said public ledger does not take any suspicious transactions verified from the miners, so they need to do their job well. But they are surely rewarded by their clients and the system, usually with cryptocurrency tokens.
- Mining Pools
There are two ways that people do their mining job. The first one is an independent miner. This method is popular among those with a robust resume for potential clients to take their service. The benefit of choosing this method is that an independent miner can easily make money as long as they like. There is no barring to make space for other miners’ opportunities. However, the downside of mining individually is that it is not appealing with a beginner status. There is no one to help you out.
On the other hand, mining pools help a miner with a beginner status. In this scenario, you join a miners pool and run under one agency-like situation. While many people say that you cannot maximize your skills in reservoirs because you have to share opportunities, this is not the case for more considerable mining servers like the Filecoin (FIL) mining server. The benefit of choosing a mining pool is that you will not have to care that much about your costs, like electricity and hardware cost, which is heavily used in your mining work.
- The Mechanism
The first thing you have to look out for is how the internals of a pool works. Not all pools have the same mechanism, but surely, you should choose the mechanism that works perfectly for all the needs of miners from different backgrounds.
Mining pools that use a mechanism that assign to workers is already a good aspect. Not only is it efficient since everyone will get to have an assignment for them, but it is also effective for those who might want to get the job done easily. How do these pools go over their assigning process, right? What they do is that they use an algorithm that provides tasks depending on one’s mining capacity. So, if miner A is a beginner, while miner B is a pro to the job, then the easier tasks go to miner A and the more difficult ones go to miner B.
- Transparency and payout threshold
Of course, the operator of the mining pool should perform in a fair manner, ensuring transparency and trustworthiness is cultivated in the team. The pool level, assignment rate, and until the payout scheme and how much they take should be things that you should know before you enter into any contract or agreement with them. Then, for the payout, it should be clear that you will earn less with devices with lower threshold than a high threshold.