Pooled mining with central trust (PMCT) has been a popular payment method for cryptocurrency miners for a long time. It was once the preferred method for mining Bitcoin and other cryptocurrencies. However, with the emergence of new payment methods, PMCT has been losing its relevance. In this article, we will explore what PMCT is, how it works, and whether it’s still relevant today.
What is Pooled Mining with Central Trust (PMCT)?
Pooled mining with central trust (PMCT) is a payment method used by cryptocurrency miners to share their computing power and earn a more stable income. In traditional mining, a miner needs to have powerful hardware and software to solve complex mathematical problems to add a new block to the blockchain. However, with PMCT, miners join a pool and combine their computing resources to solve these problems together. When a block is solved, the rewards are distributed among the miners proportionally based on their computing power.
PMCT was the first payment method that allowed small-scale miners to earn a steady income by joining forces with other miners. This method was introduced in 2010 by the mining pool operator, Slush. Initially, PMCT was used exclusively for Bitcoin mining, but other cryptocurrencies soon adopted this payment method.
How Does PMCT Work?
In PMCT, a mining pool operator manages the pool’s computing power and distributes the rewards among the participating miners. The pool operator is responsible for maintaining the mining hardware, software, and other operational costs. The pool operator also charges a fee for their services, which is deducted from the miners’ rewards.
To join a PMCT pool, a miner needs to create an account with the pool operator and configure their mining software to connect to the pool. The pool operator provides the mining software and the mining pool’s URL, which the miner needs to configure in their mining software. Once the miner’s hardware is connected to the pool, the pool operator starts distributing the work to the miners, and they start solving the complex mathematical problems together.
When a block is solved, the rewards are distributed proportionally among the miners based on their computing power. The pool operator deducts their fee from the miners’ rewards and deposits the remaining amount into the miners’ wallets.
Is PMCT Still Relevant Today?
PMCT was once the most popular payment method for cryptocurrency miners. However, with the emergence of new payment methods, such as pay-per-share (PPS) and full-pay-per-share (FPPS), PMCT has been losing its relevance. These new payment methods offer more benefits to miners than PMCT.
PPS is a payment method where miners receive a fixed reward for each share they contribute to the pool, regardless of whether the block is found or not. This method ensures that miners receive a stable income, even when the pool does not find a block. FPPS is similar to PPS, but in this method, the pool operator includes a fee for their services in the block reward. This method ensures that miners receive a fixed payout for each block they contribute to, regardless of whether the block is found or not.
Both PPS and FPPS offer more benefits to miners than PMCT. In PMCT, miners are paid only when a block is found, which can be infrequent, resulting in an unstable income. Also, the pool operator deducts their fee from the miners’ rewards, reducing their earnings. Moreover, PMCT requires trust in the pool operator, which can be risky, as the pool operator can run away with the miners’ rewards.
Conclusion
Pooled mining with central trust (PMCT) was once the most popular payment method for cryptocurrency miners. It allowed small-scale miners to earn a steady income by combining their computing power with other miners. However, with the emergence of new payment methods, such as PPS and FPPS, PMCT has been losing its relevance. These new payment methods offer more benefits to miners than PMCT, such as a stable income and reduced risk. Therefore, PMCT is an outdated payment method and is no longer relevant today.
