PPS, or Pay Per Share, is a popular method used in cryptocurrency mining that offers an immediate, guaranteed payout for each share that is solved by a miner.
Introduced in the early days of Bitcoin, PPS represents a breakpoint in the history of cryptocurrency mining. Before the introduction of PPS, miners were not certain about the rewards they could get from their mining efforts because rewards were dependent on the block finding process which is largely based on luck.
History of PPS in Cryptocurrency Mining
The invention of PPS can be traced back to around 2010, during the nascent days of Bitcoin. Back then, the system was designed to encourage individuals to join the network and contribute to the transaction verification process (mining). The aim was to ensure fairness by providing miners with rewards based on their contribution.
How PPS Works
Under the PPS system, miners receive reward shares for valid shares they give to the mining pool. This differs from the traditional mining scheme where rewards are only given when the pool finds a block. The amount miners receive per share is determined by the cryptocurrency’s block reward and the current difficulty of solving a block. This structure provides miners with a steady stream of income, as opposed to uncertain payouts based on fortune.
| Payment Methods | Payments | Risk |
|---|---|---|
| PPS | Immediate for each share solved | Low as payout is certain |
| Traditional Mining | Upon solving a block | High due to uncertainty and dependency on luck |
Impact of PPS
PPS provides a predictable and steady income for miners, which has led to an increase in the popularity of mining among cryptocurrency enthusiasts. This system has also contributed to the expansion of the virtual currency market.
Latest Trends: Increase in PPS Mining Pools
Given that the PPS method attracts more miners due to its stability, numerous cryptocurrency PPS mining pools have emerged. These mining pools often differ based on the coins they support, fee structures, and the payout thresholds.
PPS on the MEXC platform
In the MEXC platform, PPS plays a crucial role in its mining pool activities, providing an expected yield for users even when the mining pool is yet to find a new block.
In conclusion, Pay Per Share (PPS) has revolutionized the concept of crypto mining by providing a more stable and predictable reward system. As a result, it has upsurged the popularity of mining and has been instrumental in extending the crypto sphere. Being a part of multiple platforms like MEXC, PPS continues to play a key role in the crypto mining ecosystem.
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