GPUMINE Mining Encyclopedia（二）

What is Solo Mining?

Solo mining refers to individual mining where a single person calculates the complete block difficulty. As the overall network block difficulty increases, users must spend more time to have a chance at calculating the complete block. When transaction fees are higher, the profits from solo mining increase. However, continuous hardware upgrades are necessary to support long periods of solo mining, otherwise, the theoretical block generation time becomes increasingly longer. Also, because the efficiency of solo mining gradually decreases as the overall network computational power increases, the concept of mining pools emerged.

What is a Mining Pool?

A mining pool is a collective mining operation where the computational power of numerous miners is combined, and the block rewards are distributed based on each individual's contribution. Each mining pool operates differently, including methods for calculation, profit distribution, and behavioral patterns.

What is Mining Difficulty?

Mining difficulty refers to the amount of work required to solve a problem. When the mining difficulty is 4000 and your computational power is 40, theoretically, the time to solve the problem would be 4000/40=100 seconds. This time may vary, but the average is 100 seconds.