What is more profitable PPS or PPLNS?

What is more profitable PPS or PPLNS?

What is more profitable PPS or PPLNS
Pools today are a real lifeline for those who want to stay in mining, but do not have the ability to upgrade their equipment in accordance with the complexity of the network. Nowadays almost all "miners" except for big mining companies are members of different pools. At the same time, such services may include different ways of charging rewards, the most popular of which are PPS and PPLNS. In this article, we will discuss their basic principles and answer the question: which is better to receive rewards from PPS or PPLNS?

• PPLNS: THE PRINCIPLE OF WORK

PPLNS belongs to the proportional reward systems. Technically it is the most complicated, but it is profitable for pools and for those miners who "work" within one pool for a long time. This system assumes that the reward is not paid for the number of orbs a miner has sent between block finds, like in the PROP system, but for the number of orbs sent in a certain time frame ("shifts"). This time span is defined by each pool in its own way.

Let's look at a small example to better understand this reward system:

Assume that there is a pool with a PPLNS system and 10 shifts, 1 hour each, where the user occupies 1/100th of its total capacity. So, in order to get the full reward for the work done, the user must work at least 10 hours on the pool. To calculate the profit of our conditional pool member, you can use the following formula:

H(po) = H(pool)*(1/100)*0.3

Where:

N(po) - the user's reward

Н(py) - the pool's reward

1/100 - the share of the pool member's capacity.

0.3 - the shifter coefficient

Accordingly, if the pool mines 10 bitcoins in 3 hours, the user gets:

10*(1/100)*0.3 = 0.03 bitcoins

If the pool reward is received for 10 hours, the correction factor is removed and the user receives 0.1 bitcoin.

• PPS: HOW IT WORKS

PPS is a system of pool rewards that has a static nature. That is, each pool member receives a fixed payment for each balloon accepted by the pool. If you detail the calculation itself a bit, the final reward calculation also takes into account the current reward for the block and the complexity of the network.

This approach to reward calculation is extremely beneficial to users, because they get paid for all the work done, regardless of whether or not a new block is added to the chain. In turn, pools are sometimes left on the losing end, paying out rewards from their own reserves. It's also worth remembering that all pools working on the PPS system have rather high commissions, which partially cover the costs.

• WHAT IS MORE PROFITABLE PPS OR PPLNS?

It's impossible to say definitively, what is more profitable PPS or PPLNS. It all depends on the capacity of your equipment, as well as the nature of mining that you adhere to. For example, PPLNS will be more profitable for those users who have enough powerful equipment and try to always stick to one and the same pool. After working in one system for a certain amount of time, they will be able to reach a net profit for themselves.

If you like to jump from pool to pool, which is not always good for your status, because they do not like such miners, then it is better to pay attention to pools with PPS-system of charges. In general, all is learned by comparison, and to decide for yourself what is more profitable PPS or PPLNS, you should try both types of pools.
 

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