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.
ethereum ico registration bitcoin reklama bitcoin запрет bitcoin
bitcoin zona
100 bitcoin
bitcoin торрент credit bitcoin
bitcoin okpay 100 bitcoin market bitcoin bitcoin blog
bitcoin evolution развод bitcoin bitcoin programming cryptocurrency tech wifi tether технология bitcoin ethereum asics
депозит bitcoin bitcoin payeer
love bitcoin php bitcoin bitcoin пицца algorithm bitcoin doge bitcoin bitcoin king finney ethereum ethereum алгоритм
bitcoin деньги bitcoin get bitcoin vip ethereum форк bitcoin отзывы bitcoin get monero продать
rate bitcoin ethereum инвестинг bitcoin обналичивание spin bitcoin bitcoin автосерфинг segwit2x bitcoin
взлом bitcoin
bitcoin ann bitcoin gambling таблица bitcoin
bitcoin 3 bitcoin fan autobot bitcoin ethereum статистика bitcoin coins bitcoin rt игры bitcoin eobot bitcoin раздача bitcoin sberbank bitcoin пузырь bitcoin bitcoin взлом bitcoin сервисы алгоритмы ethereum hyip bitcoin китай bitcoin bitcoin трейдинг amd bitcoin bitcoin аккаунт tether usd пожертвование bitcoin bitcoin casino
abi ethereum bitcoin flex доходность ethereum bitcoin зарегистрироваться black bitcoin ethereum ethereum pools bitcoin видеокарты exchanges bitcoin bitcoin neteller bitcoin инвестирование курс ethereum bitcoin конференция cryptocurrency bitcoin bitcoin бумажник bitcoin review foto bitcoin cpp ethereum bitcoin valet
бесплатный bitcoin ethereum получить дешевеет bitcoin bitcoin mining bitcoin пул security bitcoin ethereum code
отзывы ethereum ethereum алгоритм casino bitcoin bitcoin xapo bitcoin markets сайт bitcoin bitcoin blue криптовалюты bitcoin ethereum myetherwallet javascript bitcoin ethereum кошелька новости monero динамика ethereum bittorrent bitcoin
компания bitcoin bitcoin зебра agario bitcoin
bitcoin hash bitcoin lucky bitcoin bounty instaforex bitcoin
bitcoin расшифровка key bitcoin bitcoin хардфорк
exchanges bitcoin ethereum заработать bitcoin скрипт
free monero anomayzer bitcoin plasma ethereum
отзывы ethereum bitcoin iq bitcoin markets amd bitcoin теханализ bitcoin
bitcoin scripting bitcoin obmen ninjatrader bitcoin widget bitcoin ethereum пул bitcoin allstars konvert bitcoin bitcoin blog ethereum contracts bitcoin получить bitcoin api monero cpuminer bitcoin dynamics
ethereum supernova ethereum хардфорк
кран bitcoin bitcoin history oil bitcoin bitcoin alliance bitcoin koshelek playstation bitcoin bitcoin school bitcoin email monero gpu bitcoin plus bitcoin майнинга takara bitcoin cryptocurrency wallet обменять bitcoin
bitcoin explorer bitcoin io конвертер ethereum cryptocurrency calculator maining bitcoin cryptocurrency magazine протокол bitcoin bitcoin kazanma coinder bitcoin apple bitcoin monero настройка bitcoin play hack bitcoin bitcoin pools логотип ethereum использование bitcoin bitcoin лохотрон bitcoin update water bitcoin ethereum platform bitcoin asic ethereum miners r bitcoin bitcoin миллионер ethereum clix bitcoin boom bitcoin freebie bitcoin fpga bitcoin play bitcoin компьютер nvidia bitcoin bitcoin xapo bitcoin help
тинькофф bitcoin fox bitcoin bitcoin information ethereum обмен bitcoin services sell ethereum tether clockworkmod film bitcoin ethereum биткоин bitcoin обсуждение bitcoin loto ethereum клиент bitcoin торги blogspot bitcoin bitcoin journal ethereum видеокарты token bitcoin
Final Thoughtsкран ethereum код bitcoin best bitcoin pool bitcoin jaxx bitcoin bitcoin usd script bitcoin bitcoin скрипты microsoft bitcoin
виталий ethereum capitalization bitcoin tracker bitcoin bitcoin рынок
ethereum debian ethereum raiden сервисы bitcoin bitcoin биржи китай bitcoin ninjatrader bitcoin bitcoin advcash ethereum transactions фонд ethereum monero client reddit bitcoin java bitcoin Verified STAFF PICKбесплатный bitcoin bitcoin mt4 bitcoin торговля foto bitcoin all bitcoin майнить ethereum bitcoin автоматически coinmarketcap bitcoin ethereum mist вики bitcoin карты bitcoin
вход bitcoin monero pools reddit ethereum bitcoin monkey captcha bitcoin хайпы bitcoin bitcoin development Here’s an example of an account that stores ETH:bitcoin trojan скачать ethereum second bitcoin cryptonight monero ethereum перспективы keystore ethereum showing interest in projects such as VPN, Blockstack, wifi mesh networks,14The result of bitcoin mining is twofold. First, when computers solve these complex math problems on the bitcoin network, they produce new bitcoin (not unlike when a mining operation extracts gold from the ground). And second, by solving computational math problems, bitcoin miners make the bitcoin payment network trustworthy and secure by verifying its transaction information.bitcoin магазин кошельки bitcoin free bitcoin amazon bitcoin bitcoin golden брокеры bitcoin bitcoin tor blitz bitcoin уязвимости bitcoin исходники bitcoin dog bitcoin ethereum alliance bitcoin linux
claim bitcoin компиляция bitcoin ethereum скачать bitcoin коллектор Ticker symbolXMR4000 bitcoin
In Europe we recommend Kraken, which has the deepest EUR/BTC orderbook.1 Also the Dutch online shop Bitonic has a good reputation.ecopayz bitcoin bitcoin conf algorithm ethereum p2pool monero bitcoin алгоритм dark bitcoin продать ethereum ethereum news ethereum биткоин ico monero reward bitcoin технология bitcoin lucky bitcoin работа bitcoin boom bitcoin bitcoin song cudaminer bitcoin bitcoin 4 q bitcoin bitcoin mempool jax bitcoin bitcoin серфинг bitcoin video
bitcoin blockstream bitcoin golden bitcoin asic nubits cryptocurrency bitcoin блоки казино ethereum bitcoin blue platinum bitcoin теханализ bitcoin
finney ethereum bcn bitcoin bitcoin vizit elena bitcoin tether gps bitcoin 30 куплю bitcoin bitcoin лохотрон
bitcoin play ethereum miner калькулятор ethereum monero 1070 anomayzer bitcoin games bitcoin bitcoin development rigname ethereum monero биржи monero xmr bitcoin цены bitcoin терминал deep bitcoin hit bitcoin bitcoin machine grayscale bitcoin компания bitcoin bitcoin ubuntu bitcoin xpub win bitcoin bitcoin iq monero price bitcoin hyip gif bitcoin ethereum info разработчик ethereum блок bitcoin bitcoin minergate monero algorithm