What does PPS mean in Ethereum mining pools?
When you hear the term “PPS” mentioned in the context of Ethereum mining pools, it’s important to understand what it stands for. In this article, we’ll dive into the world of Ethereum mining pools and explore the meaning of PPS.
PPS: A 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 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 help you understand better, here’s how PPS works:
- Calculate the total number of blocks mined in a given week.
- Subtract the block time (10 minutes) from each of those blocks to get the actual number of blocks for that week.
- Multiply this result by the maturity period (PPS).
For example, if you have a 105% PPS mining pool and you mined 1000 new Ethereum blocks in one week, your payout will be:
- Calculate the total number of blocks mined: 1000
- Subtract the block time from each of these blocks: 1000 – 10 = 990 (for the first 90 blocks)
- Multiply this result by the maturity period (105%): 990 x 105% = 1039
Your payout per week would therefore 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 conclusion, PPS is the method used by Ethereum mining pools to calculate their weekly payout. By taking into account the block time and payout time, PPS helps ensure that miners are fairly compensated for their work in keeping the Ethereum network secure and scalable.
Whether you are an experienced miner or just starting out, understanding PPS can help you make informed decisions about joining a mining pool or investing in cryptocurrency.