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 galaxy доходность bitcoin Mining cryptocurrency at a rate worthwhile to the miners requires ungodly processing power, courtesy of specialized hardware. To mine most cryptocurrencies, the central processing unit in your Dell Inspiron isn’t anywhere near fast enough to complete the task. Which brings us to another point of differentiation for litecoins; they can be mined with ordinary off-the-shelf computers more so than other cryptocurrencies can. Although the greater a machine’s capacity for mining, the better the chance it’ll earn something of value for a miner.It is scarce, durable, portable, divisible, verifiable, storable, relatively fungible, salable, and recognized across borders, and therefore has the properties of money.генераторы bitcoin 'Metcalfe's Law can also be applicable.'monero rub ethereum заработок презентация bitcoin bitcoin fpga bitcoin landing Compare Crypto Exchanges Side by Side With Othersbitcoin funding bitcoin explorer bitcoin компьютер программа tether брокеры bitcoin ютуб bitcoin bitcoin step cryptocurrency tech logo ethereum ethereum crane биткоин bitcoin
bitcoin iq
bitcoin депозит ico bitcoin bitcoin nvidia
bitcoin графики
bitcoin торговля phoenix bitcoin rotator bitcoin bitcoin android bitcoin roulette bitcoin formula tether приложения полевые bitcoin bitcoin neteller сколько bitcoin ethereum перспективы bitcoin slots bitcoin 4096
bitcoin convert bitcoin android сайт ethereum monero hardware Global: Countries have their own currencies called fiat currencies. Sending fiat currencies around the world is difficult. Cryptocurrencies can be sent all over the world easily. Cryptocurrencies are currencies without borders!cranes bitcoin alpari bitcoin rpc bitcoin bitcoin оплатить monero пул How to Mine Bitcoin: The Complete Guidebitcoin покер Modified GHOST Implementationвклады bitcoin difficulty bitcoin The VOC shares proved highly liquid and desirable as collateral: withinfree monero coindesk bitcoin
bitcoin alien monero новости monero coin bitcoin xyz ethereum проблемы bitcoin официальный bitcoin вконтакте
payoneer bitcoin
bitcoin linux bitcoin average client ethereum iota cryptocurrency tails bitcoin avto bitcoin 99 bitcoin
bitcoin криптовалюта bitcoin bow bitcoin android добыча bitcoin bitcoin авито bitcoin команды ethereum stats robot bitcoin
bitcoin кэш bitcoin paper ethereum erc20 • It is scarce, divisible, portable, transferable, and fungible.bitcoin abc accepts bitcoin калькулятор bitcoin bitcoin puzzle bitcoin описание калькулятор bitcoin case bitcoin ставки bitcoin
gift bitcoin bitcoin cracker bitcoin gpu tera bitcoin data bitcoin ethereum проблемы bitcoin advcash bitcoin fpga mine ethereum bitcoin me alpari bitcoin автосборщик bitcoin bitcoin ixbt F2Pool3%1mBTCstratum+tcp://stratum.f2pool.com:3333Largebitcoin игра шахта bitcoin виталик ethereum time bitcoin ethereum info
карты bitcoin знак bitcoin лото bitcoin multiply bitcoin nicehash bitcoin
bitcoin investment эпоха ethereum bitcoin bitminer polkadot cadaver bitcoin metal
cz bitcoin bitcoin aliexpress купить ethereum cause, cut off from traditional ways of doing business, with highly potentmonero обменник monero обменник
ethereum microsoft
bitcoin playstation tether обзор
pdf bitcoin bitcoin зарегистрировать bitcoin россия
фарминг bitcoin bitcoin займ bitcoin реклама bitcoin dark кредиты bitcoin bitcoin перевод bitcoin принимаем bitcoin котировка sha256 bitcoin bitcoin lurkmore bitcoin phoenix vk bitcoin купить bitcoin bitcoin rt lite bitcoin ethereum faucets пополнить bitcoin bitcoin poloniex preev bitcoin краны monero ethereum стоимость график monero bitcoin 3 ethereum обменять solo bitcoin
bip bitcoin flash bitcoin ethereum виталий tether provisioning bitcoin nvidia bitcoin charts conference bitcoin ethereum fork
ecdsa bitcoin 600 bitcoin trezor ethereum testnet ethereum bitcoin xpub bitcoin escrow mainer bitcoin q bitcoin reddit cryptocurrency keys bitcoin time bitcoin bitcoin обналичить cryptocurrency ethereum bitcoin портал
bitcoin mail продам ethereum bitcoin cloud tether пополнение nonce bitcoin torrent bitcoin bitcoin millionaire facebook bitcoin вложить bitcoin капитализация bitcoin bitcoin life часы bitcoin tether usd algorithm ethereum bitcoin center bitcoin суть decred cryptocurrency flash bitcoin gif bitcoin How would things be different with blockchain?bitcoin qazanmaq bitcoin wm laundering bitcoin bitcoin map forbot bitcoin bitcoin live bitcoin data vip bitcoin bitcoin список bitcoin mmgp обмен tether future bitcoin bitcoin logo nanopool monero bitcoin обменять
bitcoin alliance прогнозы bitcoin bitcoin cap технология bitcoin market bitcoin gold cryptocurrency ethereum complexity bitcoin переводчик bitcoin форки bitcoin лайткоин monero pro
bitcoin king bitcoin стратегия шахты bitcoin bitcoin вконтакте bitcoin основатель bitcoin monkey ethereum course box bitcoin криптокошельки ethereum перевод ethereum bitcoin работа
bitcoin mempool Now that you’ve gotten the 10,000-foot overview of what a blockchain is, let’s dive deeper into the main components that the Ethereum system is comprised of:использование bitcoin nova bitcoin
падение ethereum ethereum википедия tether обменник обновление ethereum matteo monero bitcoin презентация ethereum bitcointalk bitcoin команды email bitcoin ethereum адрес bitcoin tor bitcoin token bitcoin рейтинг hashrate bitcoin byzantium ethereum remix ethereum accepts bitcoin wallpaper bitcoin bitcoin banking обналичить bitcoin tether верификация bitcoin qr ethereum block bitcoin neteller 4000 bitcoin bitcoin explorer депозит bitcoin ethereum bitcoin обновление ethereum bitcoin rig
bitcoin в tether курс python bitcoin cryptocurrency nem
ethereum асик bestexchange bitcoin monero калькулятор ethereum transactions партнерка bitcoin график bitcoin future bitcoin fpga bitcoin ethereum block tether clockworkmod Because your cryptocurrency holdings aren’t tied to a financial institution or government, they are available to you no matter where you are in the world or what happens to any of the global finance system’s major intermediaries.16 bitcoin ethereum gas tether обзор boxbit bitcoin bitcoin теханализ ethereum клиент блоки bitcoin
reddit bitcoin reward bitcoin
wired tether bitcoin футболка bitcoin darkcoin sportsbook bitcoin bitcoin reindex
ethereum habrahabr tether tools bitcointalk ethereum робот bitcoin
bitcoin цена ethereum crane purse bitcoin bitcoin carding ethereum сбербанк bitcoin playstation bitcoin community bitcoin location bitcoin история bitcoin qr
bitcoin падение ethereum хешрейт ethereum картинки bitcoin видеокарта 1080 ethereum earn bitcoin
nanopool ethereum create bitcoin bitcoin poloniex air bitcoin обменять ethereum fire bitcoin reddit bitcoin habrahabr bitcoin magic bitcoin prune bitcoin bitcoin cap
blender bitcoin service bitcoin takara bitcoin get bitcoin монета ethereum монеты bitcoin
bitcoin продать doubler bitcoin secp256k1 bitcoin проекта ethereum bitcoin фарм monero proxy monero форум short bitcoin транзакции bitcoin bitcoin information auction bitcoin locate bitcoin bitcoin monero
cryptocurrency reddit bitcoin matrix
bitcoin подтверждение bitcoin goldmine bitcoin converter bitcoin 99 dog bitcoin серфинг bitcoin bitcoin хешрейт bitcoin broker bitcoin wallpaper xmr monero bitcoin hype ethereum habrahabr secp256k1 bitcoin bitcoin kaufen bitcoin 99 bitcoin talk майнинг monero bitcoin карты ethereum nicehash
приложение bitcoin лучшие bitcoin создатель bitcoin котировки bitcoin асик ethereum electrum ethereum взлом bitcoin plus bitcoin bitcoin таблица forbot bitcoin
android tether
bitcoin change half bitcoin ethereum wallet antminer bitcoin habrahabr bitcoin win bitcoin india bitcoin blitz bitcoin cryptocurrency capitalization etoro bitcoin Once that signal is communicated, then it becomes clear that bitcoin is easy. Download an app, link a bank account, buy bitcoin. Get a piece of hardware, hardware generates address, send money to address. No one can take it from you and no one can print more. In that moment, bitcoin becomes far more intuitive. Seems complicated from the periphery, but it is that easy, and anyone with common sense and something to lose will figure it out; the benefit is so great and money is such a basic necessity that the bar on a relative basis only gets lower and lower in time. Self-preservation is the only motivation necessary; it ultimately breaks down any barriers that otherwise exist.magic bitcoin падение ethereum We have a public distributed ledger, which works using a hashing encryption.birds bitcoin etoro bitcoin оплатить bitcoin ethereum contracts bitcoin plus config bitcoin wallet tether майнеры bitcoin demo bitcoin ethereum charts
flash bitcoin bitcoin dogecoin bitcoin btc new bitcoin ethereum charts icons bitcoin bitcoin api bitcoin клиент euro bitcoin The idea of Ethereum is to change how apps on the internet work today, awarding users more control by replacing intermediaries with smart contracts that execute rules automatically. bitcoin shops перспектива bitcoin окупаемость bitcoin bitcoin direct bitcoin автосерфинг bitcoin coingecko
аналитика bitcoin bitcoin blocks
monero cryptonote joker bitcoin
The primary use case for USDT is moving money between exchanges quickly to take advantage of arbitrage opportunities when the price of cryptocurrencies differs on two exchanges; traders can make money on this discrepancy. But it has found other applications: Chinese importers stationed in Russia have also used USDT to send millions of dollars worth of value across the border, bypassing strict capital controls in China.monero купить bitcoin china bitcoin криптовалюта ethereum виталий cubits bitcoin ethereum обменять forex bitcoin bitcoin видеокарты биржа ethereum бонусы bitcoin neo cryptocurrency боты bitcoin rus bitcoin bitcoin комбайн bitcoin 100 second bitcoin 1080 ethereum обмен tether vpn bitcoin
monero proxy ethereum кран bitcoin foto iota cryptocurrency bitcoin lucky monero core ru bitcoin bitcoin multiplier bitcoin song генераторы bitcoin bitcoin aliexpress bitcoin virus bitcoin invest бесплатный bitcoin bitcoin хабрахабр deep bitcoin bitcoin neteller plasma ethereum bitcoin 10 usb bitcoin обмен bitcoin json bitcoin bitcoin вклады ферма ethereum bitcoin converter bitcoin продать ethereum farm развод bitcoin all bitcoin
bitcoin хабрахабр bitcoin club
monero free sun bitcoin bitcoin 99 The Advantages of Bitcoinbitcoin maps Many experts see blockchain technology as having serious potential for uses like online voting and crowdfunding, and major financial institutions such as JPMorgan Chase (JPM) see the potential to lower transaction costs by streamlining payment processing.4 However, because cryptocurrencies are virtual and are not stored on a central database, a digital cryptocurrency balance can be wiped out by the loss or destruction of a hard drive if a backup copy of the private key does not exist. At the same time, there is no central authority, government, or corporation that has access to your funds or your personal information.ethereum скачать bitcoin miner фото ethereum
forum ethereum buy tether goldmine bitcoin bitcoin advcash консультации bitcoin ethereum монета bitcoin compare обмен bitcoin bitcoin take
bitcoin asic Most wallets are digital apps that can be accessed from a smartphone or laptop. Furthermore, these digital wallets store digital money in the form of cryptocurrencies like bitcoin and ether.gek monero количество bitcoin
продаю bitcoin difficulty monero bitcoin talk bitcoin machine bitcoin asic vk bitcoin
bitcoin вход ethereum info ethereum прогноз bitcoin взлом bitcoin pizza шахта bitcoin bitcoin balance 60 bitcoin fake bitcoin bitcoin girls bitcoin установка bitcoin china bitcoin компьютер bitcoin покер bitcoin puzzle bitcoin background кошельки ethereum cryptocurrency reddit ethereum перспективы pay bitcoin bitcoin block bitcoin войти start bitcoin майнинг monero bitcoin wm платформ ethereum bitcoin сбербанк ethereum mine faucet cryptocurrency raspberry bitcoin bitcoin pizza bitcoin новости cryptocurrency top сложность bitcoin андроид bitcoin bitcoin home cfd bitcoin bitcoin china ninjatrader bitcoin bitcoin easy birds bitcoin bitcoin 2010 accepts bitcoin topfan bitcoin bitcoin cny 1070 ethereum bitcoin abc
купить bitcoin bitcoin yandex bitcoin валюты
bitcoin maker bitcoin metal yota tether cryptocurrency tech платформ ethereum
network bitcoin 2016 bitcoin iphone bitcoin капитализация ethereum сбор bitcoin free bitcoin
bitcoin автоматически ethereum mist ethereum io
bitcoin earn paidbooks bitcoin rus bitcoin
magic bitcoin криптовалюта bitcoin bitcoin nedir сбербанк bitcoin
видеокарты bitcoin ethereum прогнозы ethereum cpu пирамида bitcoin usb bitcoin конференция bitcoin javascript bitcoin вклады bitcoin bitcoin mac bitcoin tm bitcoin rig bitcoin мавроди alien bitcoin 600 bitcoin bitcoin майнеры bitcoin store bitcoin ethereum