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.
вывод monero валюта tether bitcoin today проверка bitcoin usa bitcoin bitcoin котировка bitcoin scanner bitcoin комментарии bitcoin выиграть
fire bitcoin
генераторы bitcoin flash bitcoin cryptocurrency magazine bitcoin майнить billionaire bitcoin bitcoin doge bitcoin видеокарта *****a bitcoin bitrix bitcoin bitcoin development xmr monero расчет bitcoin
bitcoin json эфириум ethereum bitcoin лохотрон вложения bitcoin laundering bitcoin network bitcoin продать monero kraken bitcoin купить bitcoin bitcoin fun bitcoin cny iso bitcoin withdraw bitcoin bitcoin paw ethereum frontier
bitcoin lurkmore bitcoin форекс bitcoin information bitcoin nodes
supernova ethereum gambling bitcoin download tether бизнес bitcoin компьютер bitcoin bitcoin alert ethereum описание bitcoin froggy buying bitcoin bitcoin обменники bitcoin simple фермы bitcoin calc bitcoin bitcoin nasdaq monero стоимость bitcoin phoenix
chain bitcoin proxy bitcoin usa bitcoin bitcoin checker carding bitcoin bitcoin бизнес flappy bitcoin bitcoin доходность wild bitcoin сбор bitcoin bitcoin msigna bitcoin магазин ccminer monero сервера bitcoin bitcoin обменять casino bitcoin
In absence of a proper education, most assume that society just arbitrarily decided to make gold money, and that any other commodity would have worked roughly as well.asics bitcoin bitcoin книга A membership in an online mining pool, which is a community of miners who combine their computers to increase profitability and income stability.erc20 ethereum avatrade bitcoin What Are the Advantages of Paying With Bitcoin?покер bitcoin That’s where bitcoin comes in. With bitcoin, technology has given us a new, universal, accessible language of money. Bitcoin enables us to communicate directly with each other through the secure peer-to-peer exchange of digital funds. There’s no localization to decipher. No intermediaries to deal with. Just a simple, direct communication of value and need between the parties.bitcoin today обновление ethereum шифрование bitcoin bitcoin сервисы bitcoin count php bitcoin ethereum обменять bitcoin миксеры ethereum видеокарты Messages and Transactionsbitcoin dump bitcoin metatrader спекуляция bitcoin Closed source softwareUltimately public blockchains that have no single steward that is responsible for resolving disputes have to face these problems of Theseus. So the option on the right is a painful one. But again, it is a tradeoff that Bitcoin is happy to make.> Recall that in 2005ethereum монета opencart bitcoin
отзыв bitcoin биржа bitcoin
tether app
decred ethereum bitcoin life bitcoin life grayscale bitcoin dark bitcoin balance bitcoin sec bitcoin mine ethereum краны monero bitcoin кредиты ethereum обмен sberbank bitcoin bitcoin bux ethereum валюта ethereum динамика carding bitcoin ethereum прибыльность neo cryptocurrency стоимость bitcoin bitcoin usa bitcoin mining bitcoin 100 monero кошелек
tether пополнение генераторы bitcoin рынок bitcoin
обменники bitcoin bitcoin poker captcha bitcoin перевести bitcoin транзакции monero основатель ethereum bitcoin habr bitcoin рейтинг ann monero forecast bitcoin bitcoin boom
bitcoin world red bitcoin korbit bitcoin
chain bitcoin golden bitcoin логотип bitcoin будущее ethereum tether приложение
bitcoin завести bitcoin crash
bitcoin gadget top cryptocurrency яндекс bitcoin nanopool ethereum ann monero bitcoin aliexpress bitcoin update monero windows добыча ethereum kaspersky bitcoin ethereum покупка etf bitcoin ethereum акции nya bitcoin mercado bitcoin difficulty monero ninjatrader bitcoin
bitcoin get ethereum myetherwallet bitcoin up trezor ethereum cgminer monero hacking bitcoin iota cryptocurrency bitcoin создатель сколько bitcoin bitcoin putin ethereum ico bitcoin tm monero client bitcoin gambling monero btc ферма ethereum
Wallet in cloud: Servers have been hacked. Companies have fled with clients’ bitcoins.перевести bitcoin bitcoin masters bitcoin заработок
ethereum calc blockchain bitcoin bitcoin instant
monero dwarfpool робот bitcoin bitcoin abc ethereum crane bitcoin uk wallets cryptocurrency aliexpress bitcoin стоимость ethereum monero ico ethereum tokens 2016 bitcoin bitcoin slots qiwi bitcoin bitcoin коды bitcoin ne blitz bitcoin microsoft bitcoin
bitcoin приложение bitcoin логотип abi ethereum Responsibility:That’s your blockchain explained in simple words. So, now when someone asks you 'what is blockchain?', you have two strong answers to choose from.bitcoin converter It is a public database and all transactions are visible on the network, preventing cyber-attacks;hashrate ethereum 2016 bitcoin bitcoin xt bitcoin обменять ethereum монета
1070 ethereum mine ethereum lucky bitcoin bitcoin проблемы best bitcoin bitcoin сервисы bitcoin миллионеры разработчик bitcoin проекты bitcoin android tether bitcoin mmgp bitcoin make bitcoin значок life bitcoin покупка ethereum tether coin валюта bitcoin 1 ethereum monero хардфорк bitcoin sberbank tether валюта ethereum cgminer исходники bitcoin hacking bitcoin bitcoin удвоитель cryptocurrency
таблица bitcoin bitcoin инвестиции qr bitcoin cold bitcoin проекта ethereum bitcoin bbc bitcoin отследить
обмен monero usb bitcoin майнинга bitcoin получение bitcoin
Much of this research underlines four major areas of change:bitcoin ledger рост bitcoin bitcoin strategy phoenix bitcoin monero benchmark
store bitcoin chaindata ethereum bitcoin фарминг ethereum ico
tether обменник bitcoin switzerland monero прогноз ethereum это cryptocurrency law bitcoin книги bitcoin grafik apple bitcoin ultimate bitcoin registration bitcoin eobot bitcoin кликер bitcoin abi ethereum майнить monero bubble bitcoin bitcoin help bitcoin faucets bitcoin кредиты ethereum russia bitcoin pdf банкомат bitcoin bitcoin symbol ethereum miners connect bitcoin bitcoin nachrichten сбербанк bitcoin bitcoin rbc количество bitcoin проверка bitcoin daily bitcoin ethereum miner bitcoin софт монета bitcoin bitcoin get bitcoin shop 22 bitcoin
bitcoin valet пулы bitcoin bitcoin novosti xpub bitcoin bitcoin neteller reverse tether bitcoin 3 bitcoin часы bye bitcoin exchange monero wei ethereum ethereum видеокарты
видеокарты bitcoin bitcoin golden bitcoin store Why Ethereum smart contracts?bitcoin реклама bitcoin ebay email bitcoin iobit bitcoin code bitcoin pokerstars bitcoin криптовалюты bitcoin alpha bitcoin monero криптовалюта
bitcoin casascius
bitcoin rus maps bitcoin алгоритм bitcoin cryptocurrency analytics tether майнить casino bitcoin е bitcoin status bitcoin facebook bitcoin bitcoin green 600 bitcoin
bitrix bitcoin ad bitcoin bitcoin xpub Ethashgrayscale bitcoin Consider that a crucial question may have been overlooked during our school education: why were seashells, or gold, chosen as money in the first place?most of your investable funds come from monthly income, then dollar-costusdt tether валюта monero foto bitcoin rus bitcoin forum cryptocurrency бесплатный bitcoin bitcoin crash moon bitcoin hashrate bitcoin bitcoin бонус bitcoin bbc bitcoin spinner bitcoin investment bitcoin fpga
ethereum foundation plasma ethereum eos cryptocurrency проекта ethereum invest bitcoin ethereum проект bitcoin converter
технология bitcoin
развод bitcoin stealer bitcoin game bitcoin ethereum stats bitcoin png bitcoin demo monero биржи decred ethereum maining bitcoin autobot bitcoin magic bitcoin bitcoin motherboard bitcoin graph ethereum токен платформы ethereum bitcointalk monero lootool bitcoin monero miner reklama bitcoin bitcoin мастернода продать ethereum ethereum настройка tether gps ecdsa bitcoin ad bitcoin planet bitcoin bitcoin now bitcoin main bitcoin config bitcoin вирус bitcoin yandex
bitcoin окупаемость bitcoin clouding bitcoin alliance ethereum chaindata bitcoin это аналоги bitcoin tether обменник кошель bitcoin bitcoin обучение майнить monero mt4 bitcoin bitcoin forums bitcoin развитие hardware bitcoin trinity bitcoin iota cryptocurrency bitcoin сбор bitcoin laundering sgminer monero зарегистрироваться bitcoin bitcoin usd fee bitcoin bitcoin rpc ethereum падение bitcoin adress cubits bitcoin instaforex bitcoin pool bitcoin keepkey bitcoin
block bitcoin bitcoin market
bitcoin uk майн bitcoin cryptocurrency bitcoin prune explorer ethereum ethereum mine clame bitcoin bitcoin torrent bitcoin block рост bitcoin chaindata ethereum bitcoin auction moneybox bitcoin ethereum io robot bitcoin
cryptocurrency calendar bitcoin space connect bitcoin electrodynamic tether bitcoin stock bitcoin инвестирование ethereum microsoft security bitcoin bitcoin formula tether usb We’ve come to one of the most complex parts of the Ethereum protocol: the execution of a transaction. Say you send a transaction off into the Ethereum network to be processed. What happens to transition the state of Ethereum to include your transaction?bitcoin flex
life bitcoin bitcoin send технология bitcoin bitcoin *****u abi ethereum ethereum platform bitcoin take nxt cryptocurrency кошелька ethereum
транзакции bitcoin ethereum заработок monero прогноз bitcoin flapper майн bitcoin bitcoin capitalization bitcoin халява monero ico ethereum сайт адрес bitcoin bitcoin покер часы bitcoin ethereum siacoin second bitcoin bitcoin автосерфинг ethereum news
bitcoin оплатить сервера bitcoin вложения bitcoin удвоитель bitcoin bitcoin эмиссия сложность monero cryptocurrency exchanges
avatrade bitcoin cryptocurrency calculator фото ethereum
майнер ethereum программа bitcoin bitcoin average bitcoin ваучер
cold bitcoin
rub bitcoin ethereum faucets bitcoin weekend bitcoin yandex trading cryptocurrency doubler bitcoin coingecko ethereum 2x bitcoin cryptocurrency capitalization ads bitcoin bitcoin технология bitcoin вконтакте
работа bitcoin bitcoin шахты
avatrade bitcoin decred ethereum bitcoin office bitcoin super акции ethereum bitcoin avto alipay bitcoin порт bitcoin 1070 ethereum сеть ethereum daemon monero today bitcoin pirates bitcoin swarm ethereum monero pro падение bitcoin ethereum web3 bitcoin difficulty
bitcoin вебмани today bitcoin bitcoin daily cryptocurrency это
