What is Multipool Mining?
Multipool mining is the process of moving from one cryptocurrency to the next, mining the most profitable option at the time. Multipool miners take into account the network strength and exchange rate of a cryptocurrency, as well as its exchange rate.
Operation of Multipool Mining
Here’s an example to give you a better idea of how it all works. Imagine a multipool has a certain cryptocurrency with a total performance of 10 GH. Hash performance is calculated, which could be 90 GH, suggesting a 90% chance of mining the block. The reward for these particular cryptocurrencies per block is then calculated, as well as the conversion rate to the base currency.
In mining, it is important to understand the different types of blocks. This is important because it has a great impact on expected income. Another factor to be taken into account is the level of difficulty and how quickly such difficulty can arise. The difficulty can be set in different ways, per block with the Kimoto Gravity source, or directly with Digishield.
A multipool is a multi-coin profit-switching mining pool that mines Bitcoins and several alternative cryptographic currencies.
The multipool that started it all was a single port based on the SHA-256 multiport. As of now, it is has mined five different cryptographic currencies, including Bitcoin, Terracoin and PeerCoin.
Miners are not limited to the profit-switching port. They can connect to each of the pools to directly make a single coin. The rewards are currently distributed according to the changing character of the pool using a proportional system.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.