How Can a Pool Operator Use Financial Metrics to Quantify the Economic Cost of High Latency? ▴ Learn

How Can a Pool Operator Use Financial Metrics to Quantify the Economic Cost of High Latency?

A pool operator can quantify the cost of high latency by tracking the percentage of stale shares submitted by miners. Each stale share represents lost potential revenue (a share that could have contributed to a block find).

By multiplying the stale share rate by the pool's expected block reward value and the average share value, the operator can calculate the monetary value of lost earnings due to latency.

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What Is the Difference between a ‘Valid Share’ and an ‘Invalid Share’?

What Is the Concept of ‘Stale Shares’ and How Do They Affect a Miner’s Profitability?

Are There Hybrid Payment Methods like Pay-Per-Last-N-Shares (PPLNS) and How Do They Work?