In 2023, pools use at least 21 schemes to reward members. Many of them are unpopular because they are inconvenient or bring low profits to miners. Among the most popular schemes are PPS, PPLNS and FPPS. They are fair and profitable for everyone. That said, the third one is fairer than the others. But few people understand what FPPS is in mining. And in fact, this system is used by most pools.
FPPS reward method in mining
The abbreviation stands for Full Pay Per Share. In Russian, this phrase is translated as “full pay per share”. The term Shares, on the other hand, refers to fragments of ongoing work to find a valid or valid hash – the identifier of the next block in the cryptocurrency network.
Pools – platforms for joint mining – divide the tasks of calculating functions and transfer only their parts to the miners of digital assets. This speeds up the execution of the shared work.
To participate in cryptocurrency mining, you need to purchase expensive and powerful equipment. However, there is no guarantee that it will pay off. Market participants more often choose pools. They allow you to combine the computing resources of the technique and make mining more profitable.
The system involves payments for valid balls sent by cryptominers. If the user correctly solves part of the task, he will receive an award. The size of the rewards depends on the statistics of the pools. Using the Bitcoin blockchain as an example, it looks like this:
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- Participants of a mining pool have calculated a new link in the virtual chain for 1,000 solutions.
- The platform divides the total reward by 1000. In 2023, the premium for finding a Bitcoin block is 6.25 BTC. So the price of 1 orb will be 6.25 / 1000 = 0.00625 BTC.
- The platform pays 0.00625 BTC each to users who provided valid solutions.
Autor: Mgr: Saifedean Ammous, odborník na ekonomiku kryptomien.