Top 6 best mining pools for Ergo coin

You can also be interested in these:

In a previous article we saw the top 8 best mining pools for Ethereum. On this occasion we are going to analyze in detail what the ERG is, and what are the top 6 best mining pools for Ergo crypto coin. One of the main characteristics of this currency and what has stood out from its counterparts is its peculiar rejection to ASICs: Its extraction is only limited to GPU use. This makes the cryptocurrency mining process even easier and more accessible.

What is the Ergo coin?

This project entered the Blockchain universe with steady steps and solid cadence, and its proposal was quite unique. It was created with the ambitious goal of becoming the fundamental technology to cover everything related to smart contracts in the decentralized finance (DeFi) industry. This platform has a cryptocurrency as well, known as Ergo and its own programming language called ErgoScript.

More into details, about the ErgoScript, this is the language on which this technology is based, and it has important differences compared to its main competitor, the Bitcoin Script. We could summarize by saying that ErgoScript offers its developers greater flexibility and a broader amount of functionality, which in turn is the invitation letter for more and more users to join and contribute to the project, making it more robust. The developer’s capabilities go as far as to establish who or when the Ergo coin can be used.

Despite its differences, the Ergo also has its similarities with more popular technologies, such as the use of the consensus method of Proof of Work (PoW), which in turn uses a proprietary algorithm. This algorithm is what the creators of the Ergo call Autolykos. As we already mentioned, this algorithm is not mineable with the use of ASICs. Rather, it is oriented for GPUs with a capacity of at least 4GB of VRAM, although the optimal recommended is 8 GB of VRAM.

Integrated into the Ergo platform, there is also the long-term HODL prevention system, one of the most influential factors in creating inflation. This consists of establishing a storage fee in the event that the funds in an account are not moved within a period of 4 years. The fee quota will be determined by the number of bytes that the stored tokens occupy.

Now let’s talk about crypto-mining pools for a bit

In a nutshell, cryptocurrency mining is based on solving complex mathematical algorithms in the shortest possible time. As the processing power is essential to be able to determine the solution of these calculations as soon as possible, the miners don’t necessarily rely on their own individual rigs to perform this process. Instead, they create communities or groups, called mining pools to streamline the results.

The participants of a mining pool offer their “processing juice” through a server. The idea is to get the valid hash of the next block or transaction through the solution of a rather complex mathematical equation. The members of the pool that offers the timeliest solution will be rewarded with the cryptocurrency.

The prize in cryptocurrency that the pool wins is distributed among the participants. However, not all earn the same: The percentage that each member will earn will be determined by the amount of power contributed. As is logical, if you have a good mining rig you can have a considerable larger contribution quota in resources, and therefore, higher profits.

When it comes to withdrawing the earnings there are some restrictions in place. Each pool will establish the minimum cryptocurrency that can be withdrawn and the percentage of commissions that will be charged for it. In most cases, pools charge this fee to cover server and infrastructure costs.

How are the earnings distributed?

The logical step that finalizes the mining cycle is, of course, withdrawing the funds obtained from your hard mining work. This is an extremely easy process to carry out. The most popular mining pools have established withdrawal rules. Below we detail the most common withdrawal mechanics in cryptocurrency mining pools:

The benefit of the reward is directly influenced by the amount of power that the pool member contributes, and for this, the amount of the global power of the platform is taken into account. With this measurement, the pool obtains a general metric for a more accurate estimate. On top of this calculation, the maximum amount of daily profit that can be obtained is also taken into consideration.

This method does not offer rewards for transactions. Instead, it rewards pool members with a fixed amount regardless of risk, no matter if there is a block or not. It is the one that, in general, offers greater stability and reliability, but this also comes accompanied by quite high pool commission fees.

PPLNS (Pay-Per-Last N Shares)

Pool members are rewarded for their actions during a timeslot predefined by the system, which mostly ends with the creation of a new block. The biggest difference with other methods is that actions taken outside of this pre-defined time will not be rewarded at all.

There are two ways in which the system assigns the periods of time that will be rewarded: By selectively establishing a period of time, or after an X number of actions performed by the pool members.

There is a luck factor in this method, perhaps that is why it is also called “pay-by-luck shares”. In order to get paid, the pool has to find a block. It is possible miners can get more benefits than with PPS, as long as they have carried out a considerable number of actions in the established time. Both pool commissions and rewards are equally distributed among members.

PPS+

This scheme is a mix of the PPS and the PPLNS. While this method distributes the profits equally among the pool members, in the same way the charge of pool fees is determined by the number of actions of the participants in a given amount of time.

PROP

This is the easiest compensation scheme that exists. For this, rounds are defined from the time when the pool enters the block until the time the next one appears. All the actions that have been carried out during the course of that round will be rewarded by the platform.

Payments to each member will depend on the individual number of actions that person has achieved compared to the total number of actions taken by the entire group in the pool.

The best mining pools for Ergo coin

1 – Nanopool

We’ll start this top 6 count with Nanopool, one of the mining pools that currently contributes the most block-building power. It has a power that exceeds the 7 TH / s, which represents more than 40% of all the transactions carried out throughout the whole network. Nanopool has a PPLNS compensation system and charges a 1% commission for withdrawals, with a minimum of 1 ERG as a requirement.

2 – Herominers

The value or percentage of power that a pool or platform provides to the network is a determining factor in knowing where the largest number of miners are, and in turn which one offers the best profit possibilities in the market. However, the more members in a pool, the more competition you have, and this can go in detriment of your earnings.

Herominers is the second largest mining pool in power contribution to the network, with an approximate of 3.4 TH / s. Its members are scattered worldwide, but stablished especially in the United States, Brazil and Turkey. This mining pool offers a PROP mining scheme, with a 0.9% withdrawal commission rate, and a minimum 0.5 ERG as withdrawal requirements.

3 – 666pool

It may not be the most reliable mining pool today. This is attributed to the fact of being established in China, or probably due to its recent inactivity rates. However, in terms of mining Ergo, is one of the pools that stands out the most in this area, despite being a platform that seems abandoned. This pool has two compensation schemes: They use the PPLNS and PPS, both with a commission rate of 1% and a minimum withdrawal of 0.5 ERG.

4 – Flypool (Bitfly)

This Ergo mining pool is managed by Ethermine, one of the most prominent Ethereum mining pools in the world, with servers in the United States, Asia and Europe. Within its features we have a dashboard that allows us to visualize our hash rate and manage our potential for payment of fees to maximize the benefits of our work. It has a PPLNS compensation scheme, with a 1% withdrawal commission and a minimum 1 ERG withdrawal requirement.

5 – 2Miners

It may seem weird that one of the most important crypto currency mining pools on the internet ends up in position number 5 of our count-down. This is because 2Miners have an average power of 1 TH / s in Ergo mining. Its dashboard is quite insightful and one of the best in terms of user experience: The user has endless options for managing their account. As a reward scheme they use the PPLNS and have a 1% withdrawal fee, with a minimum of 1 ERG to do so.

6 – WoolyPooly

A rising star. It has been very well received by its users, despite not having the highest hash rate in the market. They use the PPLNS compensation rate, 1% commission for withdrawal and 1 ERG minimum as a requirement.

Final words about the top 6 best mining pools for Ergo coin

The Ergo has gotten a lot of strength over time, and it is that cryptocurrency miners are increasingly looking for less-saturated alternatives of economy. If you need to know right of the bat which Ergo mining pools are the best among the listed options, Nanopool and Herominers are your answer. This is confirmed by its power rate on the network. Of course, apart from these two, there are a few other options such as Flypool and 2Miners, with years of experience in cryptocurrency mining. Likewise, other emerging with great traction in the network such as WoolyPooly.

One of the best parameters to determine how good a network is is its amount of power input. This will help us to maintain stable profit levels. On the other hand, the high energy cost of cryptocurrency mining is unfortunate, although perhaps over time these methods will change to others that are more favorable to our environment.