Does the Pool Operator Benefit Financially from Setting the Share Difficulty Higher or Lower?
The pool operator benefits from setting the share difficulty at an optimal level, not simply higher or lower. Setting it too low overwhelms the server with unnecessary shares, increasing operational costs.
Setting it too high leads to miner dissatisfaction due to high variance and potential loss of miners. The optimal level balances server efficiency (lower share volume) with accurate miner tracking (enough shares for fairness).
Glossar
Pool Operator
Function ⎊ The pool operator is the centralized entity responsible for coordinating the collective computational power of individual miners within a mining pool to increase the probability of discovering a block.
Optimal Share Difficulty
Calibration ⎊ Optimal Share Difficulty represents the precise Calibration of the work target assigned by a mining pool to individual miners, ensuring submitted shares are neither too frequent nor too rare.
Share Difficulty
Metric ⎊ This parameter quantifies the computational effort required for a single successful hash submission to be accepted by the network consensus mechanism.
Pool Operator Benefits
Incentive ⎊ Within cryptocurrency derivatives, options trading, and financial derivatives ecosystems, pool operator benefits encompass a structured reward system designed to incentivize participation and maintain operational integrity within decentralized liquidity pools.