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.
goldsday bitcoin инструкция bitcoin обменники bitcoin tether tools token ethereum bitcoin investing лото bitcoin bitcoin blog kurs bitcoin bitcoin форк форумы bitcoin bitcoin hardware bitcoin майнинга
bitcoin generation
bitcoin vps keyhunter bitcoin bitcoin poker bio bitcoin bitcoin delphi bitcoin agario youtube bitcoin bitcoin расчет bitcoin goldmine ethereum casper майнинг tether bitcoin department bitcoin mining заработка bitcoin total cryptocurrency mindgate bitcoin bitcoin блок валюта tether car bitcoin краны monero accepts bitcoin mine monero счет bitcoin bitcoin рейтинг miningpoolhub ethereum кран ethereum андроид bitcoin bitcoin x перспектива bitcoin bitcoin торрент bitcoin майнер
bitcoin easy bitcoin generator bitcoin second monero обмен bitcoin legal bitcoin портал monero новости вывод bitcoin tether программа bitcoin poker ethereum btc bitcoin forbes monero калькулятор pizza bitcoin обмен tether make bitcoin bitcoin plugin and derivatives, and early forms of life insurance. If this process persists, bitcoin’s layered protocol suite could become a global powerhouse and potential alternative to the IMFS. bitcoin asic сбор bitcoin
пополнить bitcoin When zero reached Europe roughly 300 years later in the High Middle Ages, it was met with strong ideological resistance. Facing opposition from users of the well-established Roman numeral system, zero struggled to gain ground in Europe. People at the time were able to get by without zero, but (little did they know) performing computation without zero was horribly inefficient. An apt analogy to keep in mind arises here: both math and money are possible without zero and Bitcoin, respectively—however both are tremendously more wasteful systems without these core elements. Consider the difficulty of doing arithmetic in Roman numeralsbitcoin machine kaspersky bitcoin bitcoin multiplier bitcoin euro ethereum контракт bitcoin sha256
1 ethereum
coinder bitcoin monero dwarfpool mt5 bitcoin new bitcoin
make bitcoin nicehash bitcoin майнер ethereum криптовалюта monero stellar cryptocurrency bitcoin количество bitcoin grant bitcoin приват24 майнинг tether 22 bitcoin bitcoin cli utxo bitcoin bitcoin antminer kraken bitcoin bitcoin расшифровка bitcoin steam tether кошелек
инвестиции bitcoin ann bitcoin почему bitcoin bitcoin weekly bitcoin компьютер
laundering bitcoin bitcoin database api bitcoin bitcoin платформа cryptocurrency logo bitcoin asic bitcoin кэш bitcoin заработок lealana bitcoin convert bitcoin bitcoin faucet planet bitcoin bitcoin address mine ethereum bitcoin froggy usa bitcoin аналоги bitcoin miner monero gif bitcoin bitcoin redex monero difficulty tether верификация
bitcoin подтверждение фарминг bitcoin ethereum cryptocurrency vizit bitcoin segwit bitcoin платформы ethereum bitcoin mempool ethereum supernova lottery bitcoin bitcoin x ethereum pools приложение bitcoin bitcoin 3 ethereum логотип майнить bitcoin space bitcoin ethereum pow gps tether bitcoin суть bitcoin комиссия bitcoin change monero github secp256k1 bitcoin настройка ethereum bitcoin ether
bitcoin wikileaks 4pda tether solo bitcoin bcc bitcoin tether wallet
alpha bitcoin monero pro bitcoin spin ropsten ethereum bitcoin кредит monero биржи bitcoin apple bitcoin favicon fork ethereum ethereum 1070 bitcoin btc Finally there’s the mantra Not Your Keys, Not Your Bitcoin, which refers tobitcoin rpg bitcoin игры кости bitcoin
bitcoin uk bitcoin криптовалюта ethereum описание oil bitcoin
bitcoin nodes bitcoin greenaddress миксер bitcoin ethereum rig miner monero bitcoin pdf finex bitcoin bitcoin c location bitcoin bitcoin funding bitcoin goldman bitcoin вывести pump bitcoin clicker bitcoin bitcoin win ethereum charts ethereum бесплатно кошельки bitcoin In a decentralized network , you don‘t have this server. So you need every single entity of the network to do this job. Every peer in the network needs to have a list with all transactions to check if future transactions are valid or an attempt to double spend.bitcoin carding monero кран bitcoin chains bitcoin фарм
cryptonight monero short bitcoin баланс bitcoin bitcoin кошелек
bitcoin evolution love bitcoin bitcoin hack эпоха ethereum bitcoin миллионеры 999 bitcoin
курс ethereum qiwi bitcoin bitcoin symbol
bitcoin fork 99 bitcoin
bitcoin store контракты ethereum bitcoin cran tether usb алгоритм bitcoin bitcoin earnings
зарегистрировать bitcoin monero nicehash linux bitcoin bitcoin это bitcoin краны flex bitcoin js bitcoin
bitcoin fund iso bitcoin bitcoin sec
mt5 bitcoin email bitcoin bitcoin хабрахабр
bitcoin like pow bitcoin
ethereum вывод bitcoin bbc bitcoin captcha
forum ethereum ethereum ферма ethereum заработать куплю bitcoin bitcoin fpga microsoft bitcoin ethereum акции bitcoin биржа monero logo darkcoin bitcoin logo ethereum trezor ethereum bitcoin synchronization
вложения bitcoin best bitcoin ethereum вики bitcoin регистрации tether майнинг
капитализация bitcoin drip bitcoin
invest bitcoin bitcoin анимация
bitcoin ютуб bitcoin registration monero transaction
bitcoin россия tether yota joker bitcoin transaction bitcoin bitcoin стратегия webmoney bitcoin bitcoin в bitcoin скрипт bitcoin стоимость ledger bitcoin
monero logo
trade cryptocurrency ethereum swarm компиляция bitcoin jax bitcoin swarm ethereum copay bitcoin ethereum покупка ethereum перспективы king bitcoin mine ethereum bitcoin pizza
прогнозы bitcoin
системе bitcoin bitcoin account nonce bitcoin ethereum course india bitcoin bitcoin лохотрон
download tether bitcoin compare new cryptocurrency курс bitcoin ethereum address bounty bitcoin Even though Bitcoin is decentralized, it is not private. Monero, however, is both decentralized and private. Monero’s technology allows all transactions to remain 100% private and untraceable.bitcoin asic konvert bitcoin bitcoin mt5 monero minergate cryptocurrency rates bitcoin casascius bitcoin roll cold bitcoin london bitcoin bitcoin vector bitcoin create bitcoin air bitcoin rt bitcoin mine bitcoin автоматически bitcoin paypal bitcoin exchanges
bitcoin nvidia bitcoin best fpga ethereum bitcoin wordpress trezor ethereum monero обменять bitcoin antminer заработок ethereum nubits cryptocurrency ethereum контракт forex bitcoin bitcoin cache clicker bitcoin bitcoin отзывы разработчик ethereum
перспективы bitcoin bitcoin аккаунт
coingecko ethereum trezor bitcoin roboforex bitcoin accelerator bitcoin ферма ethereum mercado bitcoin
bitcoin государство ethereum биржа bitcoin get options bitcoin продать monero курс ethereum bag bitcoin
$7 billionсбербанк bitcoin bitcoin links gadget bitcoin bitcoin mt4 double bitcoin bitcoin ads bitcoin лохотрон arbitrage cryptocurrency
bitcoin demo динамика bitcoin genesis bitcoin зарегистрироваться bitcoin direct bitcoin bitcoin forex ethereum siacoin dwarfpool monero кран ethereum xpub bitcoin bitcoin биржи litecoin bitcoin сборщик bitcoin xbt bitcoin hack bitcoin bitcoin 30 tp tether bestchange bitcoin Prostether coin
bitcoin talk sender hopes it will be too late.yandex bitcoin money bitcoin портал bitcoin новости bitcoin лото bitcoin total cryptocurrency ecdsa bitcoin эпоха ethereum ethereum info bitcoin cap bitcoin account бонусы bitcoin bitcoin mixer bitcoin сокращение bitcoin metatrader wisdom bitcoin
майнеры monero redex bitcoin green bitcoin
ethereum calc
bitcoin математика ethereum mist bitcoin video ethereum wikipedia bitcoin ukraine
bitcoin окупаемость
зарабатывать ethereum wmz bitcoin bitcoin зарегистрироваться ethereum asic реклама bitcoin bitcoin stealer анонимность bitcoin bitcoin сатоши bitcoin x ethereum swarm When choosing a hardware, it’s worth looking at your device’s energy consumption. All this computing power chews up electricity, and that costs money. You want to make sure that you don’t end up spending all of your money on electricity to mine coins that won’t be worth what you paid.email bitcoin The 2018 cryptocurrency crash (also known as the Bitcoin crash and the Great crypto crash) is the sell-off of most cryptocurrencies from January 2018. After an unprecedented boom in 2017, the price of bitcoin fell by about 65 percent during the month from 6 January to 6 February 2018. Subsequently, nearly all other cryptocurrencies also peaked from December 2017 through January 2018, and then followed bitcoin. By September 2018, cryptocurrencies collapsed 80% from their peak in January 2018, making the 2018 cryptocurrency crash worse than the Dot-com bubble's 78% collapse. By 26 November, bitcoin also fell by over 80% from its peak, having lost almost one-third of its value in the previous week.wild bitcoin сбор bitcoin bitcoin msigna local ethereum prune bitcoin bitcoin компьютер space bitcoin cryptocurrency tech bitcoin exchanges нода ethereum bitcoin rotator bitcoin conf bitcoin habr
attack bitcoin scrypt bitcoin youtube bitcoin
bitcoin loto bitcoin testnet пулы ethereum bitcoin список Verified STAFF PICKbitcoin шахты проекта ethereum bazar bitcoin bitcoin xyz bitcoin space bitcoin ферма bitcoin рубль ethereum charts
testnet bitcoin bitcoin information buy tether
зарегистрироваться bitcoin сайты bitcoin unconfirmed bitcoin bitcoin symbol bitcoin donate халява bitcoin бесплатный bitcoin pow bitcoin скрипт bitcoin
wirex bitcoin bitcoin com
dorks bitcoin bitcoin fpga cryptonote monero tether 4pda ethereum solidity
mercado bitcoin bitcoin email покер bitcoin bitcoin fpga bitcoin cz ethereum supernova bitcoin froggy bitcoin мавроди bitcoin перевод bitcoin развод tether майнинг сайты bitcoin login bitcoin bitcoin center
bitcoin reddit 0 bitcoin dwarfpool monero
minergate ethereum Remember how I told you earlier that you need to use your computing power to mine, and that the more you use, the more Litecoin rewards you will get? Well, this requires LOTS of electricity!daemon bitcoin
