How Is the Probability of Finding a Block Calculated for a Given Hash Rate? ▴ Learn

How Is the Probability of Finding a Block Calculated for a Given Hash Rate?

The probability is calculated by dividing the pool's total hash rate by the network's total hash rate. This ratio represents the pool's proportion of the total computational power.

For example, if a pool has 1% of the network hash rate, its probability of finding the next block is 1%. This calculation is fundamental to setting fair payout rates.

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