Last week, we launched a new series called Crypto Ecosystem Spotlight where we introduce our clients to our friends in the mining industry.
Our goal is to build on the community and camaraderie that already exists and make connections where we can. As you may have already learned, the cryptocurrency network is a small world, but getting started or scaling beyond the basics can be difficult to achieve without the right resources.
The folks at BUYMINERS.CA have been around a while; nearly a decade, in fact. Since we started, we have supplied individuals and businesses with high-quality equipment for their mining journeys, and now, we’re in the connection business. That is, people connections.
What is a mining pool?
When crypto-mining first started, it was relatively simple to get a block with a basic set up, powered by CPU. Today, after halvings and advancements in mining technology, the barriers to entry are higher than ever. Small miners require more power and resources to achieve any sort of profitability in their exploits.
To solve the problem, mining pools entered the arena!
Mining pools are like a cooperative. They are made up of individuals who combine their computational power to increase the likelihood of getting mining blocks. Once successful, the reward is divided up among all members based on their contribution.
So, rather than attempting to get your own block and competing against some heavy hitters, an individual can join a pool, increase their chances of getting rewarded, and receive an appropriate portion for their efforts.
Well, not all mining pools are created equal.
Mining pool power is constantly in flux based on people joining and leaving pools. However, Poolin is consistently ranked as the top mining pool in the world by hash rate and is responsible for mining nearly 18% of all new blocks.
Based in China, the pool offers a multi-currency platform with coins like Bitcoin, Litecoin, Ethereum, and Zcash all available to mining members. Each currency has a minimum payout and earnings are deposited daily in each member’s Poolin wallet.
Not bad for a pool that only started operating in 2019!
The company sees itself as a neutral platform; a bridge between hardware manufacturers and miners.
How Poolin stands out from the crowd
Poolin didn’t win all that market share by doing the bare minimum. In reality, the company has been innovating since its inception to bring value to its mining pool members and differentiate itself from a growing field.
Poolin’s Hash Auto-Switch is an opt-in system that increases profitability for pool members by automatically switching to a more profitable coin when the system detects it.
So, if you are mining any cryptocurrency on the platform that shares an algorithm with another coin, then the system will switch when it detects profit elsewhere. For example, BTC, BCH, BSV all use the same algorithm and allow for easy switching thanks to the system.
This defeats the pitfalls of manual switching. Much like the stock market, trying to time the market is a foolish endeavor. The same thing goes for the Hash Auto-Switch.
On top of this, Poolin has been coming out with a number of new features for their community including the recently launched Poolin Wallet and other monitoring tools that you can learn more about here.