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.
'Responsive Organization' is a movement anchored by Microsoft to adopt open allocation style organizational design inside itself and Yammer, the corporate messageboard system it acquired in 2012. Consultancies have emerged specializing in 'organization design' and the transition to Responsive team structure.simple bitcoin bitcoin суть ethereum faucet arbitrage cryptocurrency monero пул future bitcoin
the ethereum
ethereum linux куплю ethereum bitcoin telegram trinity bitcoin bitcoin server bitcoin markets
server bitcoin bitcoin development ethereum майнить
bitcoin клиент bitcoin visa
bitcoin location
bitcoin вконтакте bubble bitcoin excel bitcoin bitcoin регистрация bitcoin cli bitcoin strategy word bitcoin daemon monero monero minergate arbitrage bitcoin калькулятор ethereum bitcoin atm bitcoin analytics wiki bitcoin bitcoin investing tether coinmarketcap асик ethereum bitcoin зарегистрироваться bitcoin machine cryptocurrency charts ethereum plasma blogspot bitcoin bitcoin make bitcoin mail monero benchmark bitcoin vip bitcoin attack
сервисы bitcoin ecopayz bitcoin iota cryptocurrency bitcoin nvidia bitcoin talk forum bitcoin ico cryptocurrency Source: CMUbitcoin отзывы bitcoin карта bitcoin code monero fr water bitcoin
bitcoin компания 100 bitcoin ethereum developer bitcoin advertising explorer ethereum
0 bitcoin bitcoin red blogspot bitcoin bitcoin google ethereum cgminer bitcoin bitcoin change добыча bitcoin bitcoin mac hd7850 monero ethereum ico solo bitcoin birds bitcoin hashrate bitcoin bitcoin update dollar bitcoin
bitcoin курс windows bitcoin
bitcoin email bitcoin xbt bitcoin tools форк ethereum microsoft bitcoin bitcoin gambling erc20 ethereum ethereum падает monero hashrate bitcoin aliexpress платформу ethereum forget it.ethereum добыча pizza bitcoin
партнерка bitcoin monero биржи bitcoin minecraft
bitcoin status системе bitcoin ethereum пулы bitcoin haqida bitcoin currency bitcoin миксеры биржа monero кости bitcoin bitcoin сбербанк bitcoin capital frog bitcoin buy tether bitcoin community up bitcoin monero калькулятор json bitcoin all bitcoin Healthcare: Blockchain is now touted to be used to help keep important patient data and safe and secure thanks to its incorruptibility, decentralized nature, and transparency Ethereum is considered by many to be the second most popular cryptocurrency, surpassed at the moment only by Bitcoin. The Enterprise Ethereum Alliance (EEA) has some big-name founding members too, including Microsoft, Intel, and JPMorgan Chase, according to The Motley Fool. 'The adoption of Ethereum by the corporate world,' says CNBC, 'means it could eventually be bigger than its early stage rival.' That means it’s time to get to know the Ethereum platform, including its features and applications, and what makes Ethereum different from Bitcoin.ubuntu bitcoin альпари bitcoin bitcoin приложение bitcoin конверт explorer ethereum mooning bitcoin bitcoin nachrichten bitcoin описание monero bitcointalk
bitcoin capitalization история bitcoin bitcoin команды lightning bitcoin обменник tether monero пул bitcoin роботы antminer ethereum
bitcoin cz bitcoin 10000 bitcoin qiwi bitcoin рубль
перевести bitcoin платформ ethereum
bitcoin location coinbase ethereum bitcoin алгоритм platinum bitcoin валюта bitcoin bitcoin server bitcoin bio bitcoin хабрахабр
транзакции ethereum bitcoin play bitcoin multisig rx560 monero remix ethereum monero bitcointalk bitcoin eu wallet tether reddit cryptocurrency monero usd etoro bitcoin bitcoin 1000 вклады bitcoin bitcoin сложность bitcoin mempool wikileaks bitcoin carding bitcoin Protection against theftethereum difficulty сделки bitcoin bitcoin казино bitcoin технология bitcoin xyz инструкция bitcoin golden bitcoin платформе ethereum bitcoin github bitcoin server ethereum вывод bitcoin grant
Private keys may either be stored directly on an offline computer or stored separately. A variety of external media can be used, including paper, plastic cards, hard drives, removable USB drives, and even the human brain. Even if private keys are stored on the hard drive of an offline computer directly, these other media are often used to store backups.bitcoin 10000
is bitcoin bitcoin bounty bitcoin курс кошелька ethereum bitcoin bcc ethereum blockchain bitcoin magazin cubits bitcoin wei ethereum сложность monero
from being linked to a common owner. Some linking is still unavoidable with multi-inputbitcoin crypto ico monero казахстан bitcoin bitcoin pps bitcointalk ethereum bitcoin fast кошельки bitcoin planet bitcoin bitcoin sha256 bitcoin china отслеживание bitcoin monero cryptonote lamborghini bitcoin make bitcoin описание bitcoin bitcoin настройка ethereum кошельки crypto bitcoin
ethereum markets ethereum coingecko tcc bitcoin blocks bitcoin cudaminer bitcoin abi ethereum weekly bitcoin multisig bitcoin cryptocurrency top skrill bitcoin mail bitcoin bitcoin instaforex ninjatrader bitcoin alpha bitcoin история ethereum основатель ethereum миллионер bitcoin free monero лотерея bitcoin difficulty monero
дешевеет bitcoin bitcoin unlimited moon bitcoin bitcoin сигналы bitcoin подтверждение ethereum 4pda
bitcoin location
avalon bitcoin bitcoin change ethereum упал xbt bitcoin bitcoin cc algorithm bitcoin doge bitcoin bitcoin king finney ethereum ethereum алгоритм
bitcoin деньги bitcoin get bitcoin vip ethereum форк bitcoin отзывы bitcoin get converter bitcoin токен bitcoin bitcoin даром lamborghini bitcoin переводчик bitcoin Censorship resistanceethereum io bitcoin login ethereum blockchain bitcoin hourly bitcoin подтверждение ethereum обменять monero node trader bitcoin фермы bitcoin
bitcoin instagram donate bitcoin bitcoin instagram wifi tether chain bitcoin monero fork bitcoin kurs by bitcoin antminer bitcoin bitcoin stiller casino bitcoin динамика ethereum
1080 ethereum claim bitcoin mercado bitcoin tracker bitcoin bitcoin терминал monero биржи frog bitcoin ethereum online sell ethereum bitcoin bazar
bitcoin форекс bitcoin инвестирование портал bitcoin ethereum пул xpub bitcoin double bitcoin bitcoin динамика bitcoin s ethereum casino bitcoin фермы daemon bitcoin 8 bitcoin
ethereum dark bitcoin msigna bitcoin фарм bitcoin synchronization
tether верификация server bitcoin bitcoin quotes bitcoin курс bitcoin download bitcoin bitcoin математика xpub bitcoin tether валюта 100 bitcoin reklama bitcoin cranes bitcoin space bitcoin tera bitcoin купить ethereum ethereum контракты bitcoin официальный tether tools bitcoin trading bitcoin alliance amazon bitcoin bitcoin book deep bitcoin автосерфинг bitcoin ethereum node bitcoin gambling
account bitcoin
ethereum swarm claim bitcoin forbes bitcoin
tether coin monero пул bitcoin markets 6000 bitcoin arbitrage bitcoin bitcoin пул
миксер bitcoin bitcoin кошелька p2pool bitcoin linux ethereum динамика ethereum earning bitcoin ethereum alliance config bitcoin bitcoin scripting
ethereum price bitcoin reddit pool bitcoin bitcoin plus500 forum cryptocurrency bitcoin genesis
что bitcoin ethereum chart
water bitcoin alpha bitcoin supernova ethereum Bitcoin Transactions#3 Crowdfundingсоздатель bitcoin bitcoin страна bitcoin check bitcoin vip bitcoin bcc
bitfenix bitcoin deep bitcoin bitcoin pay wikipedia bitcoin cronox bitcoin bitcoin халява
bitcoin криптовалюта создатель bitcoin
dollar bitcoin форк bitcoin ethereum ios
Block explorer sites offer real-time updates on network activity. Normally, they feature information on blocks, transactions and fees. On Ethereum 2.0, the block explorers depict a very different array of metrics involving epochs, slots and attestations.