Bitcoin has recently taken a stranglehold around the economists and stock brokers of the world, it remains an extremely unique and promising way to store, invest in, and earn money.
Needless to say that Bitcoin is also very complicated.
Many people within domestic America may struggle to understand most concepts quickly, yet it is domestic America that potentially has the most to gain.
F2Pool is a mining pool started in 2013 that sources miners from across the world.
In order to understand what F2Pool is, we first need to understand a few different things about Bitcoin such as Bitcoin mining and Bitcoin mining pools.
Once these concepts are understood F2Pool will make much more sense.
Let’s explore these topics together.
What Is Bitcoin Mining?
This is a troublesome concept to understand but can be simple once you wrap your head around it.
So, with physical money banks decide when to print new money. One problem of physical money is the concept of inflation.
This is the concept that the money it takes to physically produce legal tender can sometimes be equal to or more than the actual money itself.
This is essentially why prices may increase over time as the actual cost of producing physical legal tender catches up with the actual value of each dollar.
Bitcoin mining was invented by Satoshi Nakamoto, who created Bitcoin. He wanted a secure and honest way to introduce more Bitcoins into the world.
As Bitcoin isn’t physical there isn’t as much fiscal cost to bring the Bitcoins into existence.
In essence, each ‘block’ of Bitcoin has an extremely hard mathematical problem attached to it which is somewhat self aware.
In order to get the Bitcoins from each block, the mathematical problem must be solved.
To solve the mathematical problem a lot of computing power is required, in the modern day at least.
In other words, these mathematical problems remain so complex you can’t really answer them with mental math, you need a computer to do this.
This is the basic concept of Bitcoin ‘mining’. As a new block is released the Bitcoin miners of the world are all in a race to be the first to solve the problem.
The first to do so earns the Bitcoins for themselves.
The actual act of solving the mathematical problem also keeps the flow of cryptocurrency honest and secure.
It can be guaranteed, or at least provable, that all Bitcoins which are in use have securely been introduced rather than being falsified by someone.
We can prove where each Bitcoin came from through blockchain which is essentially an open ledger of where all the Bitcoins are in the world, who mined them, and who currently owns them.
So, Bitcoin mining is a potential way to make money, if you can be the first to solve the problem then you will get the Bitcoins from the block which you now own and can use as you wish.
What Is A Bitcoin Mining Pool?
As we mentioned the mathematical problems are pretty complex and often require physical hardware to solve them, rather than simply our own brain power.
Satoshi made each mathematical problem ‘self aware’ insofar that the mathematical problems get harder and harder as each block is mined.
In essence, the more Bitcoins there are in the world, the harder these mathematical problems become.
Satoshi made it this way so that the flow of Bitcoin can be somewhat controlled.
Back in the noughties you could easily solve the mathematical problems with the computing power generated by your computer.
Miners found new ways to solve these mathematical problems by upgrading the hardware used to solve them, requiring different levels of electricity which in turn creates new physical problems such as heat etc.
Enter stage Bitcoin mining pools.
A Bitcoin mining pool is essentially a group of Bitcoin miners who have decided to amalgamate their computing power over one network so that they can mine more Bitcoin and have a higher success when mining.
In essence, the miners are grouping together the computing power so that they, as a group, can mine more Bitcoin.
When they are successful the Bitcoins are divided among the miners.
What Is F2Pool?
Now we understand Bitcoin mining and Bitcoin mining pools, F2Pool will make much more sense.
F2Pool is one of the oldest mining pools, mining since 2013, and as these mathematical problems become harder and harder the mining pools become bigger and often more global.
F2Pool is a mining pool that is geographically distributed.
Over a network F2Pool combines the computing power of miners from all over the globe to keep mining efficiently.
Let’s be clear that Bitcoin is not the only cryptocurrency that can be mined.
There are thousands of coins that can be mined beyond Bitcoin and F2Pool supports around 30 different coins.
F2Pool is one of the most successful mining pools and has been historically.
F2Pool mines around 15% of all blocks and its main competitor is AntPool who mines around 1% more, although this is subject to change.
As F2Pool is the largest mining pool out there, they have a premium fee for the mining they do.
F2Pool takes 4% fee from what they mine which is larger than other pools.
Yet, the success rate of F2Pool is clearly higher than others based on how much they mine.
With decades of experience mining for crypto, F2Pool is a very secure way to mine coins if you so wish.
You essentially pay the miners and based on their success both you and miners earn from their mining while also keeping crypto safe and secure through blockchain.
Well, there you have it. No one said that the world of crypto was simple, so here’s a summary.
Cryptocurrency mining is the process of introducing new coins into the world.
Each block that contains the coins is locked behind a mathematical problem that becomes harder and harder as the amount of coins mined increases.
A crypto mining pool is a group of miners who have compiled their computing power together so they can mine these harder problems more efficiently.
Services such as F2Pool combine miners globally to create a service where you can pay the miners and you both benefit from their mining success.
F2Pool remains one of the largest mining pool services out there and has been one of the original mining pools since 2013.