Cryptonight mining FAQ

Cryptonight mining frequently asked questions

Why is hashrate different on pool dashboard?

Your mining software and the pool may show different numbers for your hashrate. This is because the pool is reporting a hash rate based on a guess - it estimates your hashrate based on the shares you submit. When in doubt, trust your mining software. It is telling you the actual hashrate. Pools can differ in their display of hashrate too.

Since you start to mine your hashrate grows gradually. Please wait. The pool determines your hashrate based on the amount of shares sent by your mining rigs (workers). This value could be a little bit different from reported hasrate (in your mining software).


When I will get my Coins form mining Pool?

You will get your Coins once your balance reaches the Pool payment threshold, then once the pool runs the next payment batch. Depending of pool, payment batch is run every N hours (it should be indicated on the pool website).


What is share?

Share is a possible valid hash for the block. Shares are beings sent by your rigs to the pool to prove their work.


What is PPLNS and PPS rewards methods?

PPLNS

PPLNS stands for Pay Per Last (luck) N Shares. This method calculates your payments based on the number of shares you submitted during a shift. It includes shift system which is time based or by number of shares submitted by the miners on the pool. Your pool may find blocks consistently or in overtime it may have huge variations in winning a block and that ultimately affects your payments. PPLNS greatly involves luck factor and you’ll notice huge fluctuations in your 24 hour payout. If you maintain your mining on a single pool then your payouts will remain consistent and it only differs when new miners join or leave the pool.

PPS

Pay Per Share pays you an average of the number of shares that you contributed to the pool in finding blocks. PPS pays you on solid rate and is more of a direct method which completely eliminates luck factor. In PPS method regardless of the pools lucky at winning blocks you’re going to get 100% payout at the end of the day. This is because there is a standard payout set for each miners based on their hash power. It won’t be more than 100% or less than that and with this PPS method you can easily calculate your potential earnings.

On the other hand with PPLNS payment system on average you can either get more than 100% or less than that. It is based on how lucky the pool is at finding blocks.

Which one is better?

Both payment systems have their merits. PPS is generally preferred by miners (holding all else equal) given they do not have to take on the additional risk of variance (luck). However with PPLNS it is possible to get paid out more than 100% if you (or your pool) is very lucky or less if your pools is unlucky.

 

Other Payment Systems

(From BitcoinWiki):

Double Geometric Method (DGM)
A hybrid between PPLNS and Geometric reward types that enables to operator to absorb some of the variance risk. Operator receives portion of payout on short rounds and returns it on longer rounds to normalize payments.

Equalized Shared Maximum Pay Per Share (ESMPPS)
Like SMPPS, but equalizes payments fairly among all those who are owed.

Pay On Target (POT)
A high variance PPS variant that pays on the difficulty of work returned to pool rather than the difficulty of work served by pool.

Pay Per Last N Shifts/Groups (PPLNSG)
Similar to PPLNS, but shares are grouped into “shifts” which are paid as a whole.

Proportional (Prop)
When block is found, the reward is distributed among all workers proportionally to how much shares each of them has found.

Recent Shared Maximum Pay Per Share (RSMPPS)
Like SMPPS, but system aims to prioritize the most recent miners first.

Score based system (Score)
A proportional reward, but weighed by time submitted. Each submitted share is worth more in the function of time since start of current round. For each share score is updated by: score += exp(t/C). This makes later shares worth much more than earlier shares, thus the miner’s score quickly diminishes when they stop mining on the pool. Rewards are calculated proportionally to scores (and not to shares). (at slush’s pool C=300 seconds, and every hour scores are normalized).

Shared Maximum Pay Per Share (SMPPS)
Like Pay Per Share, but never pays more than the pool earns.

Full Pay Per Share (FPPS)
Similar to PPS, but not only divides regular block reward (12.5 BTC for now) but also some of the transaction fees. Calculates a standard transaction fee within a certain period and distributes it to miners according to their hash power contributions in the pool. It will increase the miners’ earnings by sharing some of the transaction fees.


What is POOL mining?

If you are mining on a small scale, it becomes extremely hard and unpredictable to earn a stable profit on your mining income. Pool mining gives you the opportunity to join a group of miners and share earnings for a consistent payout.


What is Pool luck?

Mining is probabilistic in nature: if you find a block earlier than you statistically should on average you are lucky if it takes longer, you are unlucky. In a perfect World pool would find a block on 100% luck value. Less then 100% means the pool was lucky. More then 100% means the pool was unlucky.


What is Merged mining?

You have two totally separate block chains, they are not related in any way nor does either contain any data from the other. When you mine you generate hashes that may be the solution to the current block, this is very very improbable per hash, its like a lottery where everyone generates tickets until someone finds the winning one.

Normally you make tickets and check them against the first or second CN coin block chain to see if they are the solution. With merged mining you create a ticket and check it against both the any CN-based coin block chain and the second coin block chain (must be same CN algo). First coin blockchain and second coin blockchain know nothing about each other, they are two totally different lotteries with different winning numbers, you just sent a copy of your ticket to both. Since you are sending the same ticket to two lotteries you increase your chances of winning one or the other.

Coins remain totally separate, you simply run both the First and Second coin clients on the same machine and submit hashes to both networks. If your hash is the solution to the First coin block you get First coins if you hash is the solution to the other coin block you get both coins. It's exactly like if you where mining on just one network, except you submit the same work twice.


What is invalid shares?

Invalid shares should not occur with a properly set up miner. They are commonly caused by unstable overclocks. The shares will not be credited, and your miner will be notified. There is no penalty for submitting invalid shares, however if you submit too many you can be banned for N minutes from mining Pool.


What is GPU mining?

This involves purchasing a graphics card for mining. While the cost of maintenance and the initial cost of purchase might be off-putting, it has a very good efficiency and can even be profitable for miners.


What is difficulty?

Difficulty is a measure of how difficult it is to find a hash below a given target.


What is CPU mining?

This involves you mining the coins using your CPU or even your mobile phone. It is accessible to everyone and easy for beginners to use. However, there’s hardly any profit to this method of mining.


What is block?

Transaction data is recorded in blocks. New transactions are being processes by miners into new blocks which are added to the end of the blockchain.


What is Block Height?

Blockchain is a distributed public ledger in which all transactions that take place on the network are recorded. Each cryptocurrencies relies on their own blockchain and each blockchain has its own set of rules and properties.

The very first block is called genesis block. From the creation of genesis block; every N minutes a new block is being added to the blockchain. Process in which the new blocks are created and linked together to the chain is never ending. It means there is no maximum number of blocks in blockchain. Even after all the coins have been mined the miners keep building up blocks at a fairly regular intervals.

The block height is the total number of blocks connected since the genesis block. The height of any given block is the number of blocks between it and the genesis block.

Block height is a good representation of time. It is used to measure the maturity and distance of the blockchain network. For example the block height of some Coin is 1.000.000 and its block time is N minutes. Now to calculate how long Coin is approximately been around just multiply block height by block time.


What is Block Explorer?

Block explorer is a website or a tool that allows one to browse through blocks and other key information on the blockchain. Block Explorer is simply a search tool. Just like how you use web browsers to browse through the Internet; block explorers allows one to browse the blockchain. They are search engines made specifically to search the blocks of a blockchain. Each and every cryptocurrency that relies on its own blockchain will also have its own block explorer. So you must use block explorers specific to that cryptocurrency. For example using Monero block explorer, you’ll not be able explore the chain of Bytecoin or Sumokoin.


What does SOLO mining mean?

Solo mining is the opposite of pool mining. You essentially submit your shares directly to the blockchain, which is the most profitable method if you run your own farm.

In long run the rewards are slightly higher as there is no pool fee or transaction fee involved. Another advantage of solo mining is that you are not prone to pool downtimes which in such case you can always setup a backup pool to your miner.

In pool mining you can predict the payouts but that is not the case when you are mining solo. As it based on luck and since the network is dynamic you can’t really predict your mining rewards. You are paid inconsistently. Also there are chances in which a wrong decision can lead you to a lot of waste in time and resources.


What are Block Rewards?

Block Reward refers to the amount of new Coins distributed by the network to the miners who solve each blocks. Block rewards are the only way how new Coins are created on the network. It operates both as an incentive mechanism as well as inflation mechanism.


Multiple RIGs to same wallet or multiple wallets?

The short answer is: Use the same address on all your miners. The wallet address is used by the pool to identify you and associate the number of shares that you have submitted. Most of the pools have payment thresholds, so if you use only one address, all your work will be associated with it, and you will reach the payment threshold faster. You can still use different addresses, the pools don't mind, but it will slow down your payments as the same amount of shares will be spread around all your submitted wallet addresses.


Local Wallet vs. Exchange?

Local wallet
+ You own your private keys
+ No interrupts (if you have the latest version)
+ No withdraw fee (just transfer fee)
+ Just as safe as you make it (up to 100%)
- Takes longer to sell coins


Exchange wallet
- Exchange has full control of your wallet
- Wallets have maintenance time
- Usually withdraw fee
- Vulnerable if exchange gets hacked
+ Sell coins anytime you want

*keep in mind some currency exchanges require you to use payment ID (to determine who deposited the funds).


How long does it take to Pool to find a block?

It depends on amount of active miners on Pool. The more miners work on pool → the more hashrate pool has → the more blocks are found by the pool. However the more miners are active → the less reward you get from each block found.


Can I get paid on a market / exchange wallet directly from Pool?

It depends on the pool. Some of them support this feature. Be very careful to use the exact payment ID provided by the exchange, as it is the only way for the market to know that the transferred funds belong to you!


Sources:
https://cryptonote.org/inside
https://coinguides.org
https://cryptonote.org/inside.php#equal-proof-of-work
https://github.com/netmonk/Monero-Pool-FAQ
http://superpools.online/faq/
https://moneropool.com
https://hashvault.pro/help
https://bitcointalk.org/index.php?topic=274023.0
https://cryptocurrencyfacts.com/a-quick-guide-to-cryptocurrency-terms/
CRYPTUNIT service is provided for free. Site contains opinion for informational purposes only and does not constitute investment advice.

We do not sell coins! If you want to buy some coins you can do it here. You're looking for more hashing power or You want just to try mining? You can do it here.

Always do your own research! Try to analyse the exchanges data, to analyze the possibility that you can actually sell mined coins. Some coins might be very high in the ranks, but with zero buy orders or with a very small trading volume.