Mining Pools Explained – Dashboard, Payment Structures & More | Ft. Flexpool

hey everyone welcome back to another mining 
chamber video in today's video we are going   to talk all about mining pools and which pool 
you should be using all the different payment   structures as well as everything that 
you need to know about pools in general   so if you're new to mining or you have any 
confusion regarding to mining pools i hope this   video will clarify everything for you now let's 
go ahead and get started right after the intro   first thing we should talk about is 
what are mining pools and how they work   in plain english mining pools can be envisioned 
as a team digging actual gold from the ground   the more people that dig together the more likely 
they will be able to find some gold and after the   gold is found everybody gets a little cut from it 
based on the effort that they put so now on the   contrary solo mining would be just one individual 
digging reducing his or her chances to find gold   dramatically but if that individual digging 
finds gold he will be able to keep the entire   reward for himself now i did touch base on solo 
mining a little bit for the cryptocurrency mining   for dummies video but i will eventually make a 
full video regarding to solo mining now there   are many mining pools out there some are identical 
while others might have better code base different   payment structures and all around improvements to 
handling the miners on the network these pools run   on servers and they can be pretty expensive to run 
but after the mining pools acquire a good enough   miners base they will be able to be profitable 
and that is because the majority of mining pools   take at least one percent of fee even though one 
percent sounds like it's a small amount of money   it really does pay off so let's imagine the mining 
pool has a thousand giga hash on their network in   other words one terahash then they are getting 
10 gigahash of mining profits as a dev fee but   that will be a topic for another day now let's 
focus on the miners part of it like i mentioned   before there are different payout structures 
for mining pools the most popular ones being pps   plus and ppl and s but there are also other 
types that are not that common now when i   started making this video i'm going to be 
honest with you guys i have no clue what any   of these terms mean even after trying to read up 
on them i am still just as lost and since we are   entering the technical zone i brought someone 
special to explain to us the technical terms   in ways that will sit just right for all of us
Hello, I'm Alex.

I am the lead developer over   here at Flexpool. Today I would like to share 
some knowledge about mining pools and answer   some frequently asked questions. I think it would 
be nice to start with the reward systems first. What is better, PPLNS or PPS? Two reward systems 
are really different from each other, but in the   end, they yield approximately the same profit. 
With PPLNS, you are getting paid exactly for what   you have mined on the pool. It pays your share 
of the block, where the share is your hashrate   divided by the pool's hashrate. This reward scheme 
is known for being the most profitable for miners   since payouts are coming from the block rewards 
themselves. This payout scheme has only one con,   and this con is infrequent rewards. Note that 
this rule doesn't really apply to mining pools   that have a really massive share of the entire 
network's hashrate. PPS pools were designed to   fix that con and are featuring stable income for 
miners. This is achieved by the pool paying the   miner's reward no matter if the block was found. 
PPS pools are pretty similar to the hashrate   marketplace platforms like NiceHash.

By obtaining 
this feature, unfortunately, PPS introduces some   other cons. In my opinion, the most significant 
con is that PPS pools do not guarantee all miners'   balance. Effectively, this makes a PPS pool look 
like a bank. Additionally, PPS pools add some   level of shadiness since all the rewards are 
not coming from the Ethereum network directly. To summarize, PPLNS is the best if you 
want to earn the most, and PPS is the   best for you if you want to 
have the most stable income.

Now I am going to explain a really 
confusing part, shares. Actually,   only a few miners understand what they really 
are. Shares are often represented as pieces of the   block the pool is mining. Understanding shares can 
be difficult for beginners. If you are a beginner,   I would recommend perceiving them in that way. 
But for experienced miners, I will explain what   Shares really are. Technically, shares are 
the same pending blocks the pool is mining,   but with the only difference in 
difficulty. Mining pools set a static,   relatively low difficulty for rigs to be able 
to mine them frequently. This is useful for   things like keeping track of workers' effective 
hashrate. The difficulty set by the pool is called   Share Difficulty. Greater share difficulty means 
more time to find a share. Lower share difficulty   means less time to find it, respectively. And to 
be honest, so far, this is the only difference.

Moving to the next part, a relatively new topic. 
What is the difference between mining pools'   payout fee policies? Some pools like Flexpool 
prefer sending transactions while paying a fair,   normal transaction fee. Other pools 
like Ethermine prefer cheating on the   Ethereum network by self-mining feeless 
transactions. Those pools do really loud   claims that sound like "We're paying all 
our miners' transaction fees," but in fact,   all those fees are still paid by miners. Depending 
on the block reward, it results in miners' income   being reduced by 3-5% as an indirect tax to cover 
the pool's payouts. This was acceptable when   transaction fees represented only a small 
fraction of the block rewards, but right now,   fees on Ethereum represent 50-60% and 
sometimes over 80% of the entire block reward.

For now, I think that I've covered all 
the most complex parts of mining pools.   Thank you to Mining Chamber for allowing 
me to appear in this video. Now back to So. thank you so much alex for taking your time and 
explaining to us the technical terms about mining   pools it was extremely helpful and now we can 
go ahead and recap and talk about which pool you   should be using so from what we learned about pps 
and pp lns pps would be good for having a stable   income and then pplns would be good for maximizing 
your mining profits because for pps you don't get   paid from the block rewards themselves but for ppl 
s you do get paid from that and like that you're   assured that you will get your hashrate's worth 
based on the block reward that was solved so the   first thing that comes to selecting the mining 
pool that you want to use would be the server   itself so each mining pool runs on different 
servers some of them are only located for   certain regions while some others are global so 
for example here in miningpoolstats.stream you can   see here that we have different pools and there is 
flags and a globe next to them and that just shows   you the region that they work in so for spark pool 
it's in china and then ether mine they have us   eu and asia so these are all the different servers 
that you can connect to and it's always preferred   to connect to the one closest to you even 
though yes you can connect to the one in china   but your latency might be an issue and it will 
lead to a lot of stale shares so now if we go back   to flexible for example and hit on start mining 
you will be able to find here multiple different   regions that you can select from and then you can 
connect to those pools on the mining software that   you're using so if you're using phoenix miner you 
can just put this pool address and then you'll be   able to connect with the proper port so now 
coming to the ports you have the secure ssl   port and the regular port and then your username 
and password so password is most of the time   going to be empty and your username will be your 
ethereum address and dot worker name so you can   put whatever worker name you want and then as for 
the port the secure ssl port and the regular port   you can use either of them but just to be safer 
you can use the ssl to encrypt your traffic and   in some scenarios for example the ethermine.org 
when i mine to it i usually end up using the   alternative stratum port instead of the straight 
import regular or i would use the ssl one because   the regular stratum port would not work for me 
it keeps disconnecting me from the pool so you   can also feel free to try different ports and see 
how they work for you and just make sure that you   connect to the proper server that is closest to 
your region so the second thing i would say when   you're trying to select your pool is based on your 
hash rate so if you do have 500 mega hash and more   and you want to get the maximum profits i would 
recommend selecting a pool that does ppl and s   instead of pps even though you won't be getting 
frequent rewards but you will be getting the   maximum profits for the block rewards and this 
also applies for the miner's transaction within   the block like we talked about with ethermine 
how they include the miners payouts in the block   itself which reduces your block reward by three 
to five percent and then with flexpool the miners   payouts are not included in the block reward 
themselves so you won't be wasting space for   miners payouts instead you'll have to pay your 
own transaction fee so these transaction fees can   vary and they can get pretty expensive but that 
is if you send out small amounts so if you send   for example 0.1 ethereum which comes around 180 
you will still be paying a very similar amount   of transaction fee so that is why it's best to 
do a higher minimum payout so that you have to   pay the transaction fee less frequently so for 
example this miner right here it's not my address   but it's some other miner and they have their 
minimum payout set to 30 ethereum so that means   the pool is only going to pay them when their 
unpaid balance reaches 30 ethereum and like that   you can expect a three to five percent payouts 
because the miners transactions are not within   the block themselves and instead this miner has to 
pay for that transaction by getting paid out that   30 ethereum so losing around five to ten dollars 
in transaction fees is much more profitable than   losing three to five percent of your 30 ethereum 
now i personally have the minimum payouts set to   one ethereum and i'm mining with over one gigahash 
and like that i do see less frequent payouts but i   still do get the maximum amount of money i will 
talk about how to change your minimum payouts   and talk about the different hash rates current 
average and reported in this section coming up but   now to clarify if you do have less than 500 mega 
hash and you want to get more frequent payouts   then you can go with something like ethermine 
and then put your minimum payout pretty low   and like that you won't be paying any transaction 
fees but you will be getting more frequent rewards   and if you do have more than 500 mega hash and 
you don't want to lose out on the three to five   percent of miners transactions within the block 
then you can use a pool like flex pool and just   have a higher minimum payout so that you don't 
have to pay too much transaction fees either   so that will leave you with two choices that you 
can pick so you don't have to really overthink   this topic at all just choose a pool based on your 
hash rate and then get started with it and if you   want to test out different pools you can always 
feel free to do that so now let's get to the final   part which is the dashboard so i'm going to use 
flexpool and ethermine for an example here but   all the pools generally follow the same structure 
so now let's first talk about how you will get to   that dashboard every pool will have a search by 
wallet address field where you can just click on   it and then put your mining address this address 
will be the ethereum wallet that you are mining to   so once you put that address in there and then you 
hit search you will end up getting this dashboard   right here it will show you your address and 
then it will show you when you joined and all   that good stuff almost all the pools follow the 
same structure so you'll be able to follow this   guide through any pool that you're using and if 
you just started mining then just give it some   time to reflect on your dashboard it can take 
up to three hours or one hour until you see it   reflecting on your dashboard so first let's start 
with the flexible dashboard and then we can go to   the ether mine dashboard and then hopefully you 
guys like that will understand everything you're   looking at so the first thing we have here is your 
address and then they have a ranking system for   the donations as well as the minimum payout and 
the pool donations and then when you joined so the   best thing about flexpool is that you can remove 
your pool donation completely by signing a message   or you can keep it at one percent to support 
the project i would honestly keep it at one   percent because you are supporting them that 
way now for the minimum payout you can also   change that from the settings tab right here 
and you can also change your pool donations here   so you just click on pool donation you put the 
number you want and then you continue with the   process and then for your minimum payout you just 
go to other settings and then you set your minimum   payout you can also set your gas price limit and 
email notifications so these email notifications   will notify you when one of your rigs go offline 
and it can be really helpful if you have a lot of   rigs that you're managing and you want to keep 
an eye on them i would highly recommend turning   on email notifications and now as for the minimum 
payout like i said before this is when you will   be paid from the pool so you won't be seeing any 
balance in your wallet until you reach the minimum   payout of the pool itself and you can change this 
to be 0.10 ethereum one ethereum whatever number   that fits your needs and like i said if you're 
using a pool like flexpool and you don't want   to pay too much transaction fees then keep your 
minimum payout a little bit high but if you're   using something like ethermine then you can feel 
free to keep your minimum payout pretty low and   here you have the next block share and this will 
tell you approximately how much you'll make from   the next block being sold and then when you go 
a little bit lower you will see your hash rate   so your current your average as well as your 
reported hash rate now this usually causes a   lot of confusion but let me explain it to you very 
simply your current hash rate moves on based on   the shares that you've submitted so in some hours 
you will be submitting more shares than others   and that's why you will see your current hash rate 
move around a little bit more than the other ones   so your current hashrate can go up 20 or down 20 
and it's completely fine you don't need to freak   out about it the one thing that you need to keep 
an eye on is your average hash rate as long as   your average hash rate is looking good then you'll 
be fine you can also see that this one does get   a bit lower because your current hashrate moves 
and then it calculates it based on your current   hashrate so sometimes your average will be above 
your reported or below your reported and now what   is your reported hash rate this is exactly what 
your mining terminals are showing you so if you're   mining with 100 mega hash on your phoenix miner 
then the reported hash rate will be 100 mega hash   so this is the number that reflects on your 
system and as long as you have good reported   hash rate and good average hash rate then you're 
all set and now the last thing that we have here   are the shares and like alex explained it this is 
like solving part of the block and with shares you   have valid stale and invalid so valid chairs are 
the one that are successfully submitted it doesn't   mean that it's the right solution to the block but 
it means that you did try to attempt to solve the   block and you will be getting paid according to 
that and then for sale these are the ones that   are submitted after the block is already sold so 
having a higher sale percentage usually means that   your network is slow or you're using wi-fi so i 
would highly recommend connecting with ethernet   and connecting to the closest server to your 
region generally having below one percent of   stale is completely fine if you have around three 
percent or four percent it's not bad either but   try to lower it as much as you can by doing 
the proper steps in my experience with flex   pool i've had the least amount of still shares 
so you can try different pools as well and see   which one will give you the least amount of sales 
shares now the last thing is the invalid chairs   the invalid chairs are usually due to hardware 
so to fix up your invalid chairs the first thing   you want to look at is fixing your overclocks 
reducing your memory clock and stuff like that   try to have not more than 10 invalid chairs 
within an hour having zero percent is very   ideal but if you have one every five hours or so 
then you don't need to worry about it too much   so now after the shares you have here the 
graph that shows your hash rate and the shares   and then if you go lower you'll be able to find 
your workers so these are all the workers that   are running on your wallet address so you can 
have multiple workers on your wallet address   and then if you click on them you'll be able to 
find more information there so we'll show you the   worker and then it will show you the hash rate of 
that worker as well as its shares and everything   like this so with ethermine will be exactly the 
same thing you can see all the information that   you saw on the other page you can go to payouts 
and see the payouts that you got paid as well   as changing your minimum payout from settings so 
here with this miner that has less than 500 mega   hash he has the minimum payout set to 0.1 and like 
that he will be getting paid frequently and some   pools have estimated earnings which will show you 
approximately how much you're going to be making   just remember that these numbers do change not 
because it's telling you you're going to make 40   a day that means it will always be that way if you 
don't know what impacts your mining profits you   can feel free to check out cryptocurrency mining 
for dummies video that i've made recently which   will help you understand exactly what impacts 
your mining profits now that wraps it up for the   dashboard guides if you have any questions please 
feel free to leave them in the comments below   and thank you so much alex for joining us in this 
video and you guys should also check out serpent   x special forces video on mining pools it has a 
lot of good information so i will leave the link   for it in the descriptions below along with the 
other links that we went through in this video   if you guys think i've missed anything please 
let me know in the comments below and based on   how much i missed i can go ahead and make a part 
two and we can talk about it then so thank you   guys for watching this video and if you enjoyed 
it please leave a thumbs up and if you have any   questions leave them in the comments below thank 
you guys again and i hope you have a wonderful day you

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