Monopolize the rewards by mining solo
The first step is "solo mining," where you do everything by yourself.
The advantage of solo mining is that you can monopolize the rewards from mining.
The disadvantage is that you literally have to prepare the equipment, set up the dedicated mining software, and connect the wallet all by yourself.
This solo mining is rarely done now. This is because "cloud mining" and "pool mining", which we will learn later, are far more efficient.
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Let's mine efficiently with cloud mining
Next is "cloud mining".
Cloud mining is more like an investment than strictly mining.
In cloud mining, you only provide money to the mining company and leave the actual mining to them.
Therefore, there is no large initial cost like in solo mining, and anyone can do it easily.
The reward for mining is proportional to the amount of money provided to the operator.
On the other hand, it is difficult to select the right mining company, and there is a possibility that you may be victimized by someone who runs away with your money or does not use a computer with good performance.
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Continuous mining with pool mining
The third is "pool mining".
Most of the current mining is in this pool mining.
Pool mining is a method of mining that is a combination of solo mining and cloud mining.
Pool mining is a form of mining in which solo miners gather to mine in a group, and this group is called a mining pool.
This group is called a mining pool. In solo mining, the computer performance is too low to compete with the computers of large companies, so pool mining is a way to gather many small computers and fight with the power of numbers.
In pool mining, you can mine by providing computers to the operator of the mining pool.
You can start mining by selecting one of the several mining pools and installing the software provided by the operator of that mining pool.
The reward for mining is proportional to the performance of the computer you provide to the operator.
Since pool mining is an aggregation of solo mining, the actual pool mining requires almost the same preparation work as solo mining.
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Mining pools accelerate the centralization of mining
Currently, most mining is done by pool mining.
In the early days of cryptocurrency, it was possible to mine as a solo miner, but in recent years, the number of mining business operators has increased, making it nearly impossible for individuals to mine.
Since individuals are free to decide which mining pool to choose when pool mining, there is a noticeable tendency to choose popular mining pools that have a high rate of mining success.
As a result, only a few specific mining pools are successful in mining, and mining itself, which was originally intended to be decentralized, has become centralized.
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