Does a Larger Mining Pool Generally Experience Lower Block Discovery Variance?
Yes, according to the law of large numbers, a larger mining pool with a higher total hash rate will experience lower block discovery variance. This means its actual block discovery rate will more closely align with the statistically expected rate.
Larger pools offer more predictable and stable income, which is a key benefit for miners seeking lower volatility.
Glossar
Block Discovery Rate
Parameter ⎊ This is the engineered interval between successful block discoveries, designed to maintain consistency in transaction finality and network throughput.
Mining Pool
Consensus ⎊ Mining pools represent a collaborative effort among network participants to aggregate computational resources, increasing the probability of successfully mining blocks and earning associated rewards within a Proof-of-Work cryptocurrency system.
Total Hash Rate
Measure ⎊ Total Hash Rate represents the aggregate computational power, measured in hashes per second, currently being dedicated by all miners to secure a Proof-of-Work blockchain network.
Variance
Dispersion ⎊ In cryptocurrency, options, and financial derivatives, variance quantifies the degree to which returns deviate from their expected value, representing the inherent uncertainty within an asset’s price movements.
Block Discovery
Discovery ⎊ The concept of Block Discovery, within the context of cryptocurrency, options trading, and financial derivatives, fundamentally refers to the identification of large, previously concealed positions or transactions.