Bitcoin mining pools are straightforward: complete your share of work to earn your share of the winnings. Roughly $10 billion in annual payouts to miners around the globe makes Bitcoin mining the highest stakes proof-of-work (PoW) competition in the world.

However, formulas for calculating payouts to pool participants vary widely. Since the birth of mining pools 13 years ago, pool operators have used dozens of methodologies to smooth out income or reduce the need for trust.

Listen to the article for an explainer on the multiple payout types and the risks and benefits found within each one.

For more informed news, follow us on Twitter, Instagram, and Google News or visit our website at Protos.com

Hosted on Acast. See acast.com/privacy for more information.