Difference between revisions of "Pool vs. solo mining"

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Although most miners prefer to mine in pools, there are still merits to solo mining.
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==Why You Are Here==
 
==Why You Are Here==
You are most likely here because you have been asking questions on [http://webchat.freenode.net/?channels=bitcoin-mining]#bitcoin-mining  
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An article addressing the pros and cons of solo and pooled mining can often answer questions easier than simply asking in: [http://webchat.freenode.net/?channels=bitcoin-mining #bitcoin-mining].
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Additionally, this page can serve as a reference for members of [http://webchat.freenode.net/?channels=bitcoin-mining #bitcoin-mining] to direct those with questions.
  
 
==What this topic discusses==
 
==What this topic discusses==
The purpose of this page is to explain what the differences between pooled mining and solo mining. This Topic will give pros and cons of each, and explain at what point you would want to switch from one to the other.
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The purpose of this page is to explain what the differences between pooled mining and solo mining. This Topic will give pros and cons of each to aid in the decision of a mining approach.
  
 
==What is Pooled Mining?==
 
==What is Pooled Mining?==
Pooled mining "pools" all of the resources of the clients in that pool to generate the solution to a given block. When the pool solves a block, the 50 BTC generated by that block's solution is split and distributed between the pools participants.  
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Pooled mining "pools" all of the resources of the clients in that pool to generate the solution to a given block. When the pool solves a block, the 6.25 BTC generated by that block's solution is split and distributed between the pools participants.
 
 
This means that you get "steady" payouts over time (ie 0.01 BTC per block that the pool solves, and the pool solves blocks ~30 min)
 
  
 
==What is Solo Mining?==
 
==What is Solo Mining?==
Solo mining means that you pool all of your resources into a private pool. When YOU solve a block YOU get 50 BTC.  
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Solo mining is when a miner performs the mining operations alone without joining a pool. All mined blocks are generated to the miner's credit.
 
 
This means that you get "unsteady" payouts over time (ie 50 BTC per block that you solve, and you solve blocks ~X days)
 
  
 
==Pros/Cons==
 
==Pros/Cons==
  
Pool mining is basically a collaborative effort towards discovering a block. For every Bitcoin server, not miner, the difficulty is increased. Solo mining can take ages and show no profitability unless you get extremely lucky and happen to discover a block after more than a month of non-stop mining. Solo mining had its time, but now it just isn't profitable enough to take seriously due to the difficulty of mining a block. Solo mining definitely still supports the Bitcoin network, but what would help more is buying, spending, or accepting Bitcoins in exchange for goods and service.
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;Pool Mining Pros:
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* Pooled mining generates a steadier income.
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* Pooled mining can generate a 1-2% higher income (before fees, if any) due to long polling provided by the pools.
  
If you have a machine that outputs at least 5Ghash/s then you will have a chance of discovering blocks whilst soloing more often, and that can be more profitable for you if you are very lucky. However, due to lack of features such as long-polling, you will still often get a larger payout (before fees) from a mining pool.
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;Pool Mining Cons:
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* Pool mining can suffer interruptions from outages at the pool provider.
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*: ''Pools are subject to DOS attacks and have other downtimes, too. Backup pools and solo mining can be configured for these cases.''
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* Pooled mining tends to generate a smaller income due to fees being charged and transaction fees not being cashed out.
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*: ''There are zero fee pools. Until now, transaction fees are not cashed out by any pool.''
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* Pools might be part of attack scenarios.
  
Pooled mining will generate you a steadier, smaller income while solo mining with adequate power will generate large amounts of money with large amounts of uncertainty.
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;Solo Mining Pros:
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* Solo mining is less prone to outages resulting in higher uptime.
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* Solo mining doesn't incur any fees. For each discovered block, 6.25 BTC and the transaction fees are paid to the miner.
  
Most pools take a percentage of the coins its workers have earned, but there are some that doesn't have any fees whatsoever.
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;Solo Mining Cons:
Check out [http://eligius.st/ Eligius] for more information. Support this developing pool and generate a steady income even better than solo mining!
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* Solo mining tends to generate more erratic income.
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* Solo mining wastes time due to only supporting getwork pull.
  
 
==See Also==
 
==See Also==
  
* [[Why pooled mining]] An article on the same topic presented with further details.
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* [[Why pooled mining]] An article in favor of pooled mining.
  
 
[[Category:Mining]]
 
[[Category:Mining]]

Latest revision as of 10:33, 23 June 2020

This article or section contains information that is no longer up-to-date. Please either update the outdated information or remove the outdated information.

Although most miners prefer to mine in pools, there are still merits to solo mining.

Why You Are Here

An article addressing the pros and cons of solo and pooled mining can often answer questions easier than simply asking in: #bitcoin-mining.
Additionally, this page can serve as a reference for members of #bitcoin-mining to direct those with questions.

What this topic discusses

The purpose of this page is to explain what the differences between pooled mining and solo mining. This Topic will give pros and cons of each to aid in the decision of a mining approach.

What is Pooled Mining?

Pooled mining "pools" all of the resources of the clients in that pool to generate the solution to a given block. When the pool solves a block, the 6.25 BTC generated by that block's solution is split and distributed between the pools participants.

What is Solo Mining?

Solo mining is when a miner performs the mining operations alone without joining a pool. All mined blocks are generated to the miner's credit.

Pros/Cons

Pool Mining Pros
  • Pooled mining generates a steadier income.
  • Pooled mining can generate a 1-2% higher income (before fees, if any) due to long polling provided by the pools.
Pool Mining Cons
  • Pool mining can suffer interruptions from outages at the pool provider.
    Pools are subject to DOS attacks and have other downtimes, too. Backup pools and solo mining can be configured for these cases.
  • Pooled mining tends to generate a smaller income due to fees being charged and transaction fees not being cashed out.
    There are zero fee pools. Until now, transaction fees are not cashed out by any pool.
  • Pools might be part of attack scenarios.
Solo Mining Pros
  • Solo mining is less prone to outages resulting in higher uptime.
  • Solo mining doesn't incur any fees. For each discovered block, 6.25 BTC and the transaction fees are paid to the miner.
Solo Mining Cons
  • Solo mining tends to generate more erratic income.
  • Solo mining wastes time due to only supporting getwork pull.

See Also