Group Crypto Mining vs. Solo Crypto Mining, What Is The Difference.

An Image of Group Crypto Mining

Crypto mining is fundamental to allowing cryptocurrencies to operate in a peer-to-peer decentralized fashion, removing the need for a centralized authority. The more nodes are running in a network, the more decentralized the network is, therefore the more secure it is. At AmazeWallet, we allow users to mine AMT tokens individually as well as join a group. So that each user can find a suitable option and participate in the network.

Different Types of Crypto Mining 

Crypto mining operates based on a consensus of a blockchain. A consensus is a term used to name the process in which mining, and validating transactions, is undertaken. In the case of Bitcoin, a consensus known as proof-of-work (POW) is used. POW means that a miner via hardware systems completes complex mathematical equations in order to validate transactions on the blockchain. 

A newer and now more common method of mining is proof-of-stake (POS). POS mining involves users staking (locking) the network’s token into a node, the device used to validate transactions, in order to operate as a miner. While there are many other types of consensus, we will focus on POS as the consensus that runs AmazeChain. 

Types of mining on AmazeWallet 

We have different mining options for the needs of the users. One can start with a certain amount and earn full mining rewards, or as little as 1 AMT to see how it works. 

  1. Solo Crypto Mining

    Individual mining is where a user stakes a certain amount of AMT tokens into the node position within the AmazeWallet app to operate a single node from their phone. In individual mining, all block rewards earned by the miner are sent to the individual’s wallet. As an individual miner, you must complete the associated time required in the app to reach your maximum rewards, determined by the amount of AMT staked. 

Pros:

  • Earn full mining reward
  • Different tier to choose from depends on the amount of AMTs one is willing to lock up
  • Option to earn higher mining rewards

Cons:

  • Need to actively mine for a certain period of time per day to earn maximum reward. Though background mining is possible.  
  • Consumes 1-2% battery per day and 50MB data
  • There is an entry barrier with a minimum amount of AMT token required
  1. Group Mining

    Group mining works differently in that miners can stake their AMT into group mining pools to have multiple stakers accrue their AMT to reach a total of 50 AMT required to operate a basic node. Differentiating from solo crypto mining, when a group mining pool receives the block reward, it is distributed to each member of the group based on the amount of AMT they staked into the pool. The more you stake, the more you are rewarded. 

Pros: 

  • low entry barrier. You can start earning mining reward from as little as 1 AMT locked.
  • No need to active mine everyday 

Cons:

  • Need to reach 50 AMTs to start group mining for group creators. 
  • Smaller mining rewards compared to solo mining.

Benefits of Individual Mining Vs Group Mining 

Individual mining comes with the obvious benefit that the node operators’ block rewards are not shared as there is only one operator to receive the rewards. This means that every block reward received, up to the maximum amount of rewards based on staked AMT value are given to the individual crypto miner. For those with access to sufficient capital required to begin operating an individual node, this is the best option to maximize your reward potential. 

Group mining presents a great opportunity for those wishing to test out mining, or who do not have sufficient capital for an individual node but would like to earn rewards in order to set up an individual node later. The lowest entry point to group mining is 1 AMT. This is a great opportunity for miners to enter small positions in a group and use their rewards to gain access to the capital required to run an individual node and receive direct unshared rewards in AMT. 

Technical Differences Between Individual Mining And Group Mining 

It is important to note that individual mining differs from group mining in the way that an individual miner operates a full light node via their smartphone. A group crypto miner doesn’t run a direct node from their smartphone and in turn activates a code that mines on behalf of the group to earn the rewards distributed amongst group miners. 

As AmazeWallet runs the AmazeChain via the mobile network, the smartphone in your hand can be used as a node itself for those participating in individual crypto mining. Group mining on the other hand is much like group mining for other common tokens such as BTC and ETH. A user adds their portion to the tokens pool and once it reaches the required amount, a code is activated to mine on behalf of the wallets that have added tokens to that pool. 

How To Start Group Mining or Individual Mining With AmazeWallet 

To take the next steps in order to start your mining journey with AmazeWallet, visit or help center or watch the tutorial videos on our YouTube channel. In the event you require further assistance in setting up your crypto mining position, you can join the team in any one of the community or social channels below.