Bitcoin Tutorials - Herong's Tutorial Notes - Version 1.01, by Dr. Herong Yang
Bitcoin Mining Pool
This section describes what is Bitcoin mining pool.
If one Bitcoin farm with 3,000 miners is still not fast enough, can we build a mining pool of many mining farms and miners networked to work together? The answer is yes.
Actually, today all Bitcoin blocks are mined by mining pools. Here is a list of top 10 Bitcoin mining pools and their hash powers:
Pool name Hash Power Antpool 28% F2Pool 21% BTCC Pool 13% BitFury 9% BW.COM 8% Slush 6% BitClub Network 4% Kano CKPool 4% KnCMiner 3% Telco 214 2%
The hash power of each mining pool represents their chance of successfully mining a block in the Bitcoin block.
If you join a mining pool and the pool receives the Bitcoin reward for mining a new block, you will receive a small percent of the reward too.
For example, you join the Antpool with your Antminer S9 of 14TH/s. Assuming that Antpool has a total hash power of 3,200 PH/s. Here is how low it will take for the pool to mine a new block:
8 ZH / (3,200 PH/s) = 8,000,000 PH / (3,200 PH/s) = 2,500 second = 42 minutes
So on average, Antpool will earn (ignore transaction fee earnings for a moment):
12.5 BTC per 42 minutes = $125,000 USD per 42 minutes = $4,285,714 USD per day
You will earn proportionally to your miner hash power:
$4,285,714 USD * 14 TH / 3,200 PH (per day) = $4,285,714 USD * 14 TH / 3,200,000 TH (per day) = $18.75 USD / day
Now you see the advantage of joining a mining pool instead of doing solo mining by yourself. By joining a mining pool, you can make about $18 USD on each every day. By doing solo mining, you make $125,000 USD on every 18 years.
Last update: 2018.
Table of Contents