How does a mining pool work?

[bogdy23]

Hello,

I have a 7mh/s gpu. I want to mine some coins. My question is how does this work. If a coin is worth 1$ and i can mine a max of 100 coins with my gpu. Does that mean that i will get 100$ a day?
Thank you

[1713977850]

1713977850

[1713977850]

1713977850

[HCP]

Not necessarily.

You don't mine coins. You "mine" blocks and are rewarded with coins when you solve a block. "Proof of Work" (PoW) Mining generally involves an element of luck... sometimes you get lucky and find multiple blocks, sometimes other people get lucky and find all the blocks. So, you *might* receive 100 coins in a day... you might receive 5. 

There are other factors you should probably consider too... like cost of electricity, increasing "difficulty" of mining, total hash rate, heat, noise, cost of hardware etc.

As for Mining Pools themselves... basically, by signing up to a pool, you are joining a collective and combining your hash rate with all the others in that pool. The idea being that by pooling resources, you increase the chances that someone on your team solves the block. The block reward given for solving the block is then generally divided up among ALL the pool members (based on the amount of work they have contributed) with a small percentage kept by the pool administrators to pay for the upkeep of their servers etc.

Also, Google is your friend.

[bogdy23]

1 more question if i am mining a coin that allows me with 7mh/s to get 60 coins a day. according to mining pool calculator. How much would a realistic amount of coins will i receive on average per day 10-20 and sometimes 60. Is that realistic?if i mine with another 100 friends or peers form the mining pool dosen`t the hash rate combine and instead of 60 coins we are mining 2000 a day?

[konfuzius5278]

As it was said, Mining in a Pool the block reward is divided by hash rate. It is not intersting if you "find" the block or someone else.

Normally with a constant hash rate you should round about get the same every day.

But be careful, more miners ->higher difficulty ->less reward.

For my opinion, mining only works good for you if you find a quite new coin with low difficulty.

By the way not every coin must be mined 

[bogdy23]

Yes i know i found a coin that with the computer says i can mine 60 a day with a 7 mh/s  my gpu is of 10 mh/s. Does this mean i can get that many by leaving my computer on for 16 hours a day. the 24 hrs mark si about 90-100 coins? Will it work or it will i be able to get 60 coins if the coin mining calculator says so?
Thank you

Simple yes or no will be very appreaciated

[konfuzius5278]

The question ist not specific enough. Hash rate for 24 hours makes the medium reward in a mining pool, but Hash rate for one coin may be other than on other coin

So for the first just do it if the coin is new, otherwise the difficulty may change.

What coin do you want to mine?

[HCP]

Simple yes or no will be very appreaciated

Unfortunately, it isn't a simple "yes/no" answer... as with a lot of these things the answer is... "it depends"

As pointed out, there are so many variables... the mining calculator is not able to take all of these into account. The figures it shows should be taken as the "max" you could theoretically achieve... but you should anticipate that you will likely get less. For instance, as konfuzius5278 mentioned... if a lot of miners start mining that coin, the difficulty will increase, your percentage of total hashrate drops and the likelihood of finding a block drops off etc. so the rewards will likely decrease. Conversely, if a lot of miners switch to different coins, total hashrate drops, your percentage of hashrate increases, you're likely to get more...

Mining is usually a very dynamic system... and the rewards may not be consistent. I believe this is why a lot of people opt for things like Nicehash to try and earn consistent (if lower) rewards.

Also, the problem with leaving the computer running for only 16 hours day... what happens if your pool finds all their blocks in the 8 hours when your computer is off and not contributing or soon after you restart? Pools tend to work on systems whereby you get paid for whatever "shares" you have submitted within a certain time frame prior to finding the block (Pay Per Last N Shares, aka PPLNS)... If you keep switching your rig off and on, there is a chance you won't have been contributing during the window and get paid nothing.

At the end of the day... the only way to determine what you are going to get is to try it and see... the mining calculators are OK as a "rough guide" but do not expect it to be 100% accurate.

[bogdy23]

Ok so let`s say i make half of what the calculator says and i leave the PC for 16 hours. Will that be a more realistic estimate and i`m gonna start mining
Thank you

And fingers crossed

[Ozkhan]

Hello,

I have a 7mh/s gpu. I want to mine some coins. My question is how does this work. If a coin is worth 1$ and i can mine a max of 100 coins with my gpu. Does that mean that i will get 100$ a day?
Thank you

The mining pool coordinates the workers. Think of it like a lottery. If you and your friends all buy tickets in the lottery the group has a better chance of winning. To be fair in the lottery example everyone should be rewarded proportional to the amount of money spent on tickets. So if there are 20 tickets for the pool one person purchased 10 and two people purchased 5 each - if one of the 20 tickets win the person who purchased 10 gets 50% and the other two get 25% each.

What a mining pool does is function as a coordinator for all the pool participants doing:

    Taking the pool members hashes
    Looking for block rewards
    Recording how much work all the participants are doing
    Assigning block rewards proportionally to participants

Miners mine differently by running pool software instead of the bitcoin client and just performing hashes for the pool