Ether mining pools combine the hash power of different miners to increase the chances of finding a block. The block reward is then distributed to them as per their hash rate contribution. Ethereum mining is akin to Bitcoin. Miners employ their hardware to solve computational problems and to validate a block. The miners who are first able to solve the block receive the reward and the block is added to the Blockchain. Every node then validates the block and adds to its copy of the blockchain ledger.
The chart below gives the hash rate distribution of various mining pools.
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Choosing the best Mining Pool for Ethereum
Choosing the best mining pool for Ethereum depends on several factors. Some of them are as follows:
The larger the pool, the greater the chance to find a block. However, the payout is likely to be lower in large ether mining pools.
A very commonly asked question is, how much fee does the pool charge from its participants? This typically varies from 1% to3%.
Some important and relevant questions in this regard are.
- How are the payouts calculated?
- Does the payout only include the block reward or also the transaction and uncle fees?
Uncles are legitimately mined blocks, which did not end up in the Ethereum blockchain since another block was accepted due to the network’s time lags. It is similar to Bitcoin orphans, but unlike Bitcoin, it is worth mining such blocks.
Payment model in mining pools
PPS is determined by dividing your mining power by the total pool mining power. It provides the pool with an assessment of your contribution to the pool’s work. The pool then calculates your daily reward, through easy mathematical calculations, which gives you a fixed income. However, PPS does not award miners with transaction and uncle fees, although, it ensures a steady income. Fees are also a little high in this model because of the risk that the pool takes while paying you regardless of finding a block.
Miners in a PPLNS system earn only for shares in a pre-defined “shift” ending with a block resolution. Contrary to other payment schemes, the shares issued outside the “shift” are not rewarded. This window can be described as a time frame (uncommon) or a number (N), which is the last share to be solved in the block. As a result, PPLNS is also known as Pay Per Luck Shares.
This form, unlike PPS, requires the pool to find a block to pay the miner. The PPLNS allows miners to receive greater rewards if they received more shares in the last N shares. If they did not find any shares, then no rewards at all are given. This method will pay transaction fees and uncle’s rewards to miners.
PPS+ is a kind of PPS-PPLNS blend. For each valid share they submit to the pool, the miners are paid by the pool (regardless of the pool finds a block or not). A portion of the transaction fees that the pool makes is also paid to miners based on a PPLNS method when the pool finds a block.
Top Ether Mining pools for 2020
Ethpool has DDoS protection and is a great cloud-based Ethereum mining pool. Its server supports miners such as eth-proxy, ethminer, cudaminer and qtminer in major regions across Europe, the US, and Asia. Ethpool has a unique payout mechanism and a powerful mining engine. Along with low prices, the mining pool also credits the transaction fee, which effectively makes it one of the best Ethereum mining pools. Besides, it includes an Android application for third parties to offer information on your account and tracks Ethereum mining pool status.
- Low uncle rates relative to other ETH mining pools
- An Android program from a third-party tracks ETH mining statistic
- High Mining Fee
Ethermine is almost like Ethpool, with a few variations. It provides an instant payout scheme for PPLNS and allows you to set an adjustable payment level such as 0.05 Ethereum. Ethermine correctly monitors your Hash Rate every day and credits the transaction fees and the block reward.
It has DDoS protected servers in locations such as Singapore, London, and the United States. The platform features an iOS and Android app to keep you updated about account data and your Ethereum mining hardware.
- Simple interface with instant payments.
- It does not need registration
- It charges an extra fee of 0.001 ETH upon withdrawal of less than 1 ETH.
Not only Ethereum but you can also mine other cryptocurrencies such as Monero, Zcash, EXPANS, and Groestlcoin using Dwarfpool. It is one of the profitable and user-friendly round-based payment system (RBPS) platform and have optimized stratum pool engine available. Dwarfpool provides fairly transparent mining account statistics that can be tracked by email. It also provides an auto-payment feature that sends miners their payment once an hour. DwarfPool has powerful servers worldwide, and there are no hidden transactions or fees. The platform offers services in English and Dutch languages.
- Allows you to mine multiple Cryptocurrencies
- Provides instant payment feature.
- Gives detailed mining pool report synced with email.
- A high mining fee of 1% is considered uneconomical by many people.
Update: Dwarfpool has been closed and is no longer functioning.
NanoPool is one of the most famous web-based Ethereum mining pools. In addition to Ethereum, you can also mine, Zcash, Siacoin, Monero, Pascal and many other cryptocurrencies. NanoPool also credits transactions and uncle fees yo your balance. To begin, you must install Claymore Dualminer and extract the file to a folder, then configure and execute your start.bat file.
- Provides a user-friendly interface
- Setting up is very easy
- Provides a feature to calculate profit for a specific period
- Lower mining fee as compared to the competitors
- Server lags are frequent
Mining Pool Hub
A dedicated community of enthusiasts from Ethereum set up Mining Pool Hub. Miners earn rewards of the block fee, bonuses, transaction fees, and some added incentives. Mining Pool Hub charges a mining fee of 0.9% and has its servers in Asia, North America, and Europe. Regardless of the locations, you don’t need to install any custom software or files to connect with their pool.
- The Algorithm Switching feature allows users to mine multiple tokens of the same algorithm.
- The Auto Algorithm Switching feature mines the algorithm that has the maximum profitability which makes it among the best eth pool.
- It is mainly for professional miners since the user interface is not that friendly.
F2Pool is one of the most popular ether mining pools having its servers in China, Asia as well as in the U.S. Thanks to the three key attributes–transparency, simplicity, and ease of use, F2pool.com remains high in demand. It operates a PPS+ reward system and takes a pool 2.5% fee, which is a bit high in comparison to others. Besides Bitcoin, F2Pool also supports Litecoin, Zcash, and Eth. The minimum withdrawal is 0.005 and there is a daily automatic payout.
- Supports multiple coins
- Daily payout and low minimum withdrawal
- High pool fees – 2.5%
Each Ethereum Mining Pool has its pros and cons as already mentioned above. Depending on the requirements and preferences you can use any one of the pools above after carrying a profit estimation.