What does PPS mean in Ethereum mining pools?
When you hear the term “PPS” in relation to Ethereum mining pools, it’s important to understand what it means. In this article, we’ll delve into the world of Ethereum mining pools and explore the meaning behind PPS.
PPS: Breakdown
PPS stands for Payment Period Subtraction. It’s a calculation that many Ethereum mining pools use to determine their weekly payout. This method takes into account the time it takes for the network to process blocks, known as block time (usually 10 minutes), and then subtracts that time from the total number of blocks mined.
To better understand, here’s how PPS works:
- Calculate the total number of blocks mined in a given week!
- Subtract the block time (10 minutes) from each block to get the actual block count for that week.
- Multiply this result by the payout period (PPS).
For example, if you are on a 105% PPS mining base and you mined 1000 new Ethereum blocks in a week, your payout will be as follows:
- Calculate the total number of blocks mined: 1000
- Subtract the block time from each of the following blocks: 1000 – 10 = 990 (for the first 90 blocks)
- Multiply this result by the payout period (105%): 990 x 105% = 1039
Therefore, your weekly payout would be 1039 Ethereum.
Other PPS Calculations
It is worth noting that some mining pools may use different calculation methods or have slightly different formulas for determining PPS. However, the basic principle remains the same: PPS takes into account the time it takes for blocks to be mined and processed by the network.
Conclusion
In summary, PPS is a method used by Ethereum mining pools to calculate their weekly payout. By taking into account block time and payout period, PPS helps ensure that miners are fairly compensated for their work in maintaining the security and scalability of the Ethereum network.
Whether you are an experienced miner or just a beginner, knowing PPS can help you make informed decisions about joining a mining pool or investing in cryptocurrency.