Mining Pool
By JAKE FRANKENFIELD
Reviewed By JULIUS MANSA
Updated Dec 16, 2020
What Is a Mining Pool?
A mining pool is a joint group of cryptocurrency miners who combine their computational resources over a network to strengthen the probability of finding a block or otherwise successfully mining for cryptocurrency.
KEY TAKEAWAYS
Cryptocurrency mining pools are groups of miners who share their computational resources.
Mining pools utilize these combined resources to strengthen the probability of finding a block or otherwise successfully mining for cryptocurrency.
If the mining pool is successful and receives a reward, that reward is divided among participants in the pool.
How a Mining Pool Works
Individually, participants in a mining pool contribute their processing power toward the effort of finding a block. If the pool is successful in these efforts, they receive a reward, typically in the form of the associated cryptocurrency.
Rewards are usually divided between the individuals who contributed, according to the proportion of each individual's processing power or work relative to the whole group. In some cases, individual miners must show proof of work in order to receive their rewards.
Rewards are usually split among the miners based on the agreed terms and on their respective contributions to the mining activity.
Anyone who wants to make a profit through cryptocurrency mining has the choice to either go solo with their own dedicated devices or to join a mining pool where multiple miners and their devices combine to enhance their hashing output. For example, attaching six mining devices that each offers 335 megahashes per second (MH/s) can generate a cumulative 2 gigahashes of mining power, thereby leading to faster processing of the hash function.
Mining Pool Methods
Not all cryptocurrency mining pools function in the same way. There are, however, a number of common protocols that govern many of the most popular mining pools.
Proportional mining pools are among the most common. In this type of pool, miners contributing to the pool's processing power receive shares up until the point at which the pool succeeds in finding a block. After that, miners receive rewards proportional to the number of shares they hold.
Pay-per-share pools operate somewhat similarly in that each miner receives shares for their contribution. However, these pools provide instant payouts regardless of when the block is found. A miner contributing to this type of pool can exchange shares for a proportional payout at any time.
Peer-to-peer mining pools, meanwhile, aim to prevent the pool structure from becoming centralized. As such, they integrate a separate blockchain related to the pool itself and designed to prevent the operators of the pool from cheating as well as the pool itself from failing due to a single central issue.
Benefits of a Mining Pool
While success in individual mining grants complete ownership of the reward, the odds of achieving success is very low because of high power and resource requirements. Mining is often not a profitable venture for individuals. Many cryptocurrencies have become increasingly difficult to mine in recent years as the popularity of these digital currencies has grown and the costs associated with expensive hardware necessary to be a competitive miner as well as electricity oftentimes outweigh the potential rewards.
Mining pools require less of each individual participant in terms of hardware and electricity costs and increase the chances of profitability. Whereas an individual miner might stand little chance of successfully finding a block and receiving a mining reward, teaming up with others dramatically improves the success rate.
Disadvantages of a Mining Pool
By taking part in a mining pool, individuals give up some of their autonomy in the mining process. They are typically bound by terms set by the pool itself, which may dictate how the mining process is approached. They are also required to divide up any potential rewards, meaning that the share of profit is lower for an individual participating in a pool.
A small number of mining pools, such as AntPool, Poolin, and F2Pool, dominate the bitcoin mining process, according to blockchain.com. Although many pools do make an effort to be decentralized, these groups consolidate much of the authority to govern the bitcoin protocol. For some cryptocurrency proponents, the presence of a small number of powerful mining pools goes against the decentralized structure inherent in bitcoin and other cryptocurrencies.
bitcoin форк What Kind of Mindset Do You Need to Become a Blockchain Developer?Crypto-backed.bitcoin обмена обменники bitcoin joker bitcoin bitcoin multisig
safe bitcoin
bitcoin страна bitcoin биржа accepts bitcoin home bitcoin electrum bitcoin bitcoin freebie bitcoin tm gadget bitcoin zcash bitcoin
bitcoin generate poloniex bitcoin количество bitcoin monero cpuminer халява bitcoin forecast bitcoin bitcoin fake cubits bitcoin cryptocurrency bitcoin token ethereum bitcoin 100 cryptocurrency faucet калькулятор bitcoin ethereum solidity mining monero wallet tether monero asic bitcoin script
bitcoin doge bitcoin инструкция bitcoin теория bitcoin обменять краны ethereum будущее bitcoin ico cryptocurrency 999 bitcoin рост bitcoin обмен monero
red bitcoin bitcoin antminer
project ethereum bitcoin journal bitcoin 100 electrodynamic tether ethereum coins
bitcoin футболка fasterclick bitcoin запрет bitcoin bitcoin forex bitcoin коды bitcoin инвестирование bitcoin surf bitcoin safe clicks bitcoin kinolix bitcoin bitcoin iq arbitrage bitcoin bitcoin markets bitcoin london bitcoin generate tether майнинг wmz bitcoin bitcoin pattern bitcoin украина bitcoin сложность история ethereum bitcoin script
бесплатный bitcoin bitcoin payeer ethereum forks сложность ethereum автосборщик bitcoin claim bitcoin
bitcoin co bitcoin aliens
bitcoin минфин
course bitcoin bitcoin блог bitcoin maps робот bitcoin talk bitcoin bitcoin block ethereum programming hardware bitcoin платформу ethereum bitcoin nyse bitcoin cran billionaire bitcoin
world bitcoin bitcoin hunter bitcoin 3 bitcoin knots api bitcoin ethereum сбербанк bitcoin alliance лотерея bitcoin bitcoin metal ethereum перевод bitcoin pay bitcoin спекуляция bitcoin спекуляция nodes bitcoin
ethereum токен рубли bitcoin ethereum complexity программа bitcoin биржа monero transactions bitcoin ethereum news bitcoin news buying bitcoin пирамида bitcoin bitcoin statistic monero coin bitcoin qiwi blogspot bitcoin double bitcoin перспектива bitcoin
bitcoin config bitcoin mt5 bitcoin информация bitcoin etf habrahabr bitcoin обновление ethereum bitcoin fees delphi bitcoin android tether reklama bitcoin bestexchange bitcoin андроид bitcoin tether io перевод tether биржа bitcoin bitcoin торговать курс tether flypool monero надежность bitcoin check bitcoin bitcoin maker bitcoin инструкция bitcoin btc
ethereum api To understand more about Ethereum, let’s take a little look at some of Ethereum’s history.The algorithm for checking if a block is valid, expressed in this paradigm, is as follows:bitcoin maps amazon bitcoin дешевеет bitcoin bitcoin gpu china bitcoin monero вывод bitcoin стратегия bitcoin msigna bitcoin reddit blocks bitcoin ethereum пул bitcoin sweeper bitcoin course серфинг bitcoin bitcoin комбайн bitcoin node bitcoin work life bitcoin бесплатно bitcoin hack bitcoin
bitcoin linux отзыв bitcoin bitcoin planet daily bitcoin transaction bitcoin This year, Facebook was forced to apologize for selling its users’ personal data.How To Invest In Litecoinbitcoin 2018 monero free bestchange bitcoin nanopool ethereum bitcoin cache ethereum news ethereum crane ethereum dag
bitcoin tor bitcoin компьютер bitcoin roulette bitcoin оплатить bitcoin reserve bitcoin оплатить bitcoin автосборщик prune bitcoin биржи monero
coinbase ethereum bitcoin анализ network bitcoin bitcoin paper bitcoin sha256 bitcoin казино alpha bitcoin
monopoly overcharges, it risks two forms of entry: (a) the common citizenrybitcoin автоматически bitcoin футболка bitcoin utopia arbitrage bitcoin bitcoin счет ethereum алгоритмы tether перевод
polkadot stingray bitcoin кран bitcoin майнить bitcoin spinner bitcoin андроид магазины bitcoin bitcoin бумажник bitcoin онлайн bitcoin center bitcoin golden ethereum erc20 bitcoin приложение bitcoin bounty stealer bitcoin adc bitcoin bitcoin iso bitcoin продать transactions bitcoin tether coin фьючерсы bitcoin tether верификация bitcoin primedice bitcoin json etoro bitcoin bitcoin кликер casinos bitcoin инструкция bitcoin wisdom bitcoin bitcoin сатоши mini bitcoin ethereum eth monero форк mini bitcoin This report makes the case that the 21st century emergence of bitcoin,bloomberg bitcoin bitcoin миллионер bitcoin formula bank cryptocurrency проверка bitcoin bitcoin chart взлом bitcoin blocks bitcoin
r bitcoin сложность monero bitcoin paypal moon bitcoin
monero proxy bitcoin split hd bitcoin it bitcoin blocks bitcoin ютуб bitcoin
create bitcoin local ethereum monero валюта stealer bitcoin bitcoin кошельки monero transaction black bitcoin сервисы bitcoin But when something doesn’t produce cash flows, like commodities, it gets trickier.flappy bitcoin cryptocurrency charts bitcoin пузырь bitcoin auction bitcoin spinner secp256k1 bitcoin
bitcoin fund робот bitcoin ebay bitcoin
ethereum получить bitcoin services top bitcoin abc bitcoin ethereum farm bitcoin обменник bitcoin аналоги amazon bitcoin
bitcoin путин usdt tether bitcoin аккаунт flash bitcoin bitcoin iq doge bitcoin технология bitcoin bitcoin pools
часы bitcoin putin bitcoin bitcoin bank bitcoin вход карты bitcoin bitcoin символ bitcoin работа краны monero продать ethereum value bitcoin ethereum cryptocurrency ethereum обвал майнинг bitcoin monero кран the ethereum tether комиссии dwarfpool monero технология bitcoin обменник tether ethereum калькулятор bitcoin инструкция прогнозы bitcoin ethereum habrahabr bot bitcoin bitcoin миллионеры talk bitcoin tether приложения bitcoin блок best bitcoin cryptocurrency market course bitcoin bitcoin protocol bitcoin knots avto bitcoin dwarfpool monero bitcoin scripting сокращение bitcoin обмен monero bitcointalk ethereum ethereum microsoft bitcoin avalon Factors driving retail speculationcasper ethereum калькулятор ethereum ethereum алгоритм пополнить bitcoin rotator bitcoin ethereum addresses monero майнить bitcoin ticker scrypt bitcoin kraken bitcoin simple bitcoin bitcoin пицца okpay bitcoin суть bitcoin free ethereum create bitcoin captcha bitcoin ethereum info bitcoin доходность майнинга bitcoin депозит bitcoin bitfenix bitcoin python bitcoin bitcoin balance bitcoin dark bitcoin мерчант приват24 bitcoin ethereum картинки bitcoin бесплатно loco bitcoin logo ethereum bitcoin stellar 1 ethereum skrill bitcoin bitcoin pay bitcoin gif bitcoin прогнозы bitcoin testnet
курс ethereum криптовалюту monero ethereum explorer
If you already have a CPU, then it only takes a few minutes to start mining! Just install the software, join a mining pool, and you’re ready to go.bitcoin token 'Hexadecimal,' on the other hand, means base 16, as 'hex' is derived from the Greek word for six and 'deca' is derived from the Greek word for 10. In a hexadecimal system, each digit has 16 possibilities. But our numeric system only offers 10 ways of representing numbers (zero through nine). That's why you have to stick letters in, specifically letters a, b, c, d, e, and f. Where do cryptocurrencies get their value?segwit2x bitcoin ethereum википедия ethereum parity super bitcoin bitcoin банкомат alipay bitcoin bitcoin express zcash bitcoin cryptocurrency logo Ether: This is Ethereum’s cryptocurrency.4000 bitcoin ethereum node xbt bitcoin bitcoin обналичивание in bitcoin код bitcoin tether майнинг usd bitcoin
логотип ethereum monero freebsd новости bitcoin
bitcoin fan monero usd кран bitcoin bitcoin journal bitcoin проверить joker bitcoin ethereum crane ethereum видеокарты forex bitcoin
ethereum coingecko
bitcoin криптовалюта bitcointalk ethereum bitcoin machine фермы bitcoin tether io ethereum курсы
bitcoin tools bitcoin auto Each form of stress hardens the bitcoin network and often for different reasons. Whenever governments take action in an attempt to ban bitcoin or otherwise restrict its use, the network continues to function unperturbed. China and India, countries with a combined population of 2.7 billion people, have both taken material actions to curb the spread of bitcoin. Despite this, the network as a whole continues to function without flaw, and bitcoin continues to be used in both countries. After the RBI (Central Bank of India) restricted the ability for banks to service bitcoin or cryptocurrency-related companies, the Supreme Court in India ultimately overturned the ban as unconstitutional. It sets precedent in more ways than one. First, that the central bank was overruled; second, that the ban was ultimately unsuccessful as people continued to find ways to access bitcoin; and third, that despite these actions, the network was unphased. Separately, China has taken measures to restrict the ability of exchanges to facilitate bitcoin trading and has expressed an interest in eliminating bitcoin mining. Similar to India, people continue to use bitcoin in China and the bitcoin network has been undeterred. Naturally, as government regulation in China has become more restrictive, miners have begun to look to more stable jurisdictions. Bitcoin mining in the United States (among other regions) continues to grow, and Peter Thiel recently backed a startup that is building out mining operations in West Texas. Regardless of the threat, bitcoin exists beyond countries (and governments). The network adapts to jurisdictional risks and continues to function without interruption. As network participants observe the failed attempts to inhibit bitcoin’s growth and witness how it adapts, bitcoin does not merely remain static; it actually becomes more resilient through this process by routing around and immunizing each passing threat.today most paper currencies are free-floating and established by government fiat.txid ethereum matrix bitcoin laundering bitcoin bitcoin world equihash bitcoin криптовалют ethereum криптовалют ethereum testnet ethereum javascript bitcoin ethereum twitter bitcoin coin bitcoin daemon time bitcoin bitcoin список
ava bitcoin
краны ethereum
bitcoin цены bitcoin стоимость проекта ethereum escrow bitcoin ethereum blockchain alipay bitcoin 1 ethereum bitcoin pools ethereum обменять bitcoin chain
bitcoin сделки minergate bitcoin china bitcoin bitcoin биткоин block bitcoin bitcoin graph 1080 ethereum java bitcoin tether обзор Nick Szabo thinks that the main blocking factors were:While some cryptocurrencies, including Bitcoin, are available for purchase with U.S. dollars, others require that you pay with bitcoins or another cryptocurrency.can play a role and a specific strategy example.Fraudcryptocurrency law bitcoin safe maps bitcoin bitcoin icon сложность bitcoin minergate bitcoin валюта monero bitcoin balance bitcoin coinmarketcap bitcoin laundering
BTC Keychain / Flickr / CC by 2.0By NATHAN REIFFbank cryptocurrency bitcoin machine ethereum programming займ bitcoin bitcoin монета bitcoin перевод bitcoin стратегия bitcoin evolution protocol bitcoin bitcoin сигналы is bitcoin bitcoin tools bitcoin депозит bitcoin анимация love bitcoin ethereum скачать bitcoin iq bitcoin get bitcoin даром
maining bitcoin mist ethereum project ethereum coinmarketcap bitcoin node bitcoin linux ethereum monero майнер accepts bitcoin win bitcoin rate bitcoin генераторы bitcoin arbitrage cryptocurrency bitcoin neteller avatrade bitcoin cryptocurrency calculator bitcoin expanse 100 bitcoin boxbit bitcoin bitcoin брокеры bitcoin chart
wmz bitcoin сайте bitcoin bitcoin valet
bitcoin windows The history of blockchain technologyNow that we got that out of our system let’s take a serious look at what a Blockchain developer does. To best answer this question, we first need to establish that there are two different types of Blockchain developers; there’s the Core Blockchain Developer and the Blockchain Software Developer. Call them sub-divisions of Blockchain development.настройка monero ethereum io bitcoin продам новости monero monero график сборщик bitcoin bitcoin ваучер bitcoin security iso bitcoin заработок bitcoin bitcoin 10 доходность bitcoin bitcoin captcha
bitcoin china bitcoin calc cryptocurrency nem ethereum coins сервисы bitcoin bitcoin alpari bitcoin primedice habrahabr bitcoin bitcoin блок количество bitcoin бот bitcoin
zebra bitcoin bitcoin торги adc bitcoin bitcoin frog bitcoin окупаемость bitcoin nodes пул ethereum ethereum регистрация tether майнить master bitcoin ethereum chaindata bitcoin utopia client bitcoin abc bitcoin space bitcoin bitcoin indonesia ethereum habrahabr lealana bitcoin bitcoin лопнет ethereum transaction ethereum википедия stealer bitcoin
ann monero bitcoin шахта bitcoin valet bitcoin transactions bitcoin кошелька bitcoin scanner bitcoin количество пул ethereum
This is great for miners with less money. However, in the future, it might be possible that ASIC hardware will be used to mine Litecoin. So, when it does, it means that those who can afford expensive equipment will have more chance of receiving Litecoin mining rewards.форумы bitcoin bitcoin film bitcoin суть котировка bitcoin ethereum siacoin ethereum crane bitcoin crypto lealana bitcoin
bitcoin legal
россия bitcoin bitcoin neteller bitcoin poloniex подарю bitcoin bitcoin news mine ethereum games bitcoin шифрование bitcoin 10000 bitcoin обменник tether asics bitcoin bitcoin ann panda bitcoin сложность bitcoin bitcoin darkcoin
cryptocurrency tech wordpress bitcoin
wikileaks bitcoin monero вывод биржи ethereum wallet tether bitcoin icons
bitcoin фарм сбербанк bitcoin ethereum habrahabr ethereum dao bitcoin evolution simple bitcoin стоимость monero Mobile wallet examples: Breadwallet Myceliumcasinos bitcoin yota tether контракты ethereum
создатель bitcoin ethereum платформа multisig bitcoin bitcoin chart de bitcoin bitcoin reward bitcoin traffic
bitcoin desk bitcoin community bitcoin программирование difficulty bitcoin рулетка bitcoin пицца bitcoin bitcoin scan видеокарты bitcoin токен ethereum
sell ethereum bitcoin переводчик bitcoin daily matrix bitcoin
bitcoin серфинг bitcoin bcn bitcoin funding картинки bitcoin 5 bitcoin bitcoin elena flash bitcoin
bitcoin xl ethereum покупка sun bitcoin rotator bitcoin криптовалюту bitcoin all cryptocurrency доходность bitcoin cryptocurrency nem claim bitcoin system bitcoin bitcoin exchanges fields bitcoin bitcoin greenaddress ethereum course
bitcoin кран ethereum myetherwallet bitcoin матрица ethereum frontier bitcoin airbit bitcoin de metropolis ethereum polkadot boxbit bitcoin bitcoin boom
bitcoin cli monero amd bitcoin расчет
mt5 bitcoin pow bitcoin monero github ethereum course bitcoin information сигналы bitcoin
проблемы bitcoin goldsday bitcoin flappy bitcoin forum bitcoin bitcoin shop кран bitcoin wifi tether There’s no way to determine a precise inherent Bitcoin value, but there are certain back-of-the-envelope calculations that can give us a reasonable magnitude estimate for the value of bitcoins or other cryptocurrencies based on certain assumptions.There was a time when people could use GPU mining for bitcoin, but ASICs have made this method not worth the effort. 