Let's talk about the Differences Between Ethereum Mining Pools and Solo Mining
Once you’ve made the decision to start mining on the Ethereum network, it's time to choose whether you want to go solo or unite with a group of other miners. It really is down to preference, but there are some factors that need to be considered so that you make an intelligent, realistic selection.
Let’s dig a little deeper into each of them.
What are mining pools?
To put this into layman’s terms, you’ll join a team of other miners to combine your power to discover blocks at a much faster rate. Once a block has been validated via the proof-of-work process, the reward will be split amongst the members based on how much power they inputted.
If you don’t possess top-of-the-range hardware and can’t produce a sufficient enough hash rate to claim blocks regularly, a mining pool may be your best bet. However, you are reliant on the server, and if it goes down, you'll lose progress and will have to start from scratch after identifying a
But, with a mining pool, you’re usually guaranteed to get paid on a daily basis, even if it’s relatively small amounts. If you are upgrading your hardware and improving your power output, you could claim large percentages of the pay-outs. If you want a consistent income from mining, then mining pools may be the perfect venture.
What is solo mining?
Firstly, it's worth noting that solo mining is very luck-driven, and that's why you can often go months without discovering a single block. Plus, it can be expensive to set up a system powerful enough to mine blocks at all.
So, if you're endeavoring to earn regular pay-outs, solo mining may not be suited to you. Although, with solo mining, you keep one-hundred-percent of the reward and won't need to pay any fees to stay connected to a pool's server.
Now, even though the rewards are very infrequent, when you do get paid, it’s usually an extremely significant account, which can sometimes account for all the months without any luck. Ultimately, solo mining gives you full control over the server, the mining, and the reward, which is excellent if
you’re able to beat the competition to blocks.
•Solo mining consists of infrequent pay-outs / mining pools are consistent
•Solo mining offers bigger rewards/mining pools split the rewards amongst miners
•Solo mining demands high mining power/mining pools reward based on input
•Solo mining has no fees or middleman/mining pools charge for being connected
•Solo mining allows you for mining unceasingly / mining pools sometimes suffer downtime