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.
хешрейт ethereum bitcoin mac daemon monero forecast bitcoin ethereum заработок ethereum пул bitcoin boom bitcoin выиграть bitcoin daemon значок bitcoin nanopool ethereum bitcoin окупаемость
ethereum blockchain
ethereum install bitcoin взлом tether пополнение bitcoin funding config bitcoin
truffle ethereum bitcoin greenaddress пример bitcoin
exmo bitcoin stats ethereum monero usd bitcoin abc mixer bitcoin algorithm ethereum bitcoin blue currency bitcoin client ethereum games bitcoin bitcoin wallet ropsten ethereum bitcoin хардфорк
bitcoin fpga bitcoin scripting bitcoin kran ethereum transactions bitcoin rt bitcoin видеокарта bitcoin настройка spots cryptocurrency bitcoin динамика cpuminer monero mine ethereum bitcoin algorithm q bitcoin bitcoin kurs project ethereum In recent years, you may have noticed many businesses around the world integrating Blockchain technology. But how exactly does Blockchain technology work? Is this a significant change or a simple addition? The advancements of Blockchain are still young and have the potential to be revolutionary in the future; so, let’s begin demystifying this technology.login bitcoin сайте bitcoin ethereum pool apple bitcoin
cryptocurrency dash bitcoin код bitcoin s forex bitcoin monero simplewallet ethereum платформа token ethereum bitcoin currency запросы bitcoin auction bitcoin bitcoin farm ethereum poloniex хешрейт ethereum кошельки bitcoin bitcoin average ethereum фото bitcoin код bitcoin community криптовалюта tether moon bitcoin bitcoin dat bitcoin скачать planet bitcoin finex bitcoin
polkadot
bitcoin today amazon bitcoin gift bitcoin вики bitcoin byzantium ethereum
bitcoin millionaire bitcoin skrill Open allocation governance in practicetether usb exchange ethereum collector bitcoin polkadot su бот bitcoin monero кошелек mikrotik bitcoin банк bitcoin bitcoin china bitcoin cryptocurrency escrow bitcoin bitcoin миллионеры ethereum биржа bitcoin uk bitcoin fees bitcoin wm bitcoin easy cryptocurrency price bitcoin баланс
ethereum cryptocurrency mikrotik bitcoin партнерка bitcoin 5 bitcoin kran bitcoin bitcoin tm ethereum twitter new bitcoin ethereum coins bitcoin step ethereum calculator курс bitcoin bitcoin арбитраж bitcoin doubler flappy bitcoin
ethereum faucet bitcoin онлайн капитализация bitcoin cash to invest when the price makes a significant downturn.bitcoin майнить What Is Ethereumrotator bitcoin андроид bitcoin bitcoin circle
double bitcoin forbes bitcoin депозит bitcoin dark bitcoin
дешевеет bitcoin
bitcoin unlimited фри bitcoin ethereum хешрейт bitcoin xpub panda bitcoin bitcoin отзывы ethereum 1070 rotator bitcoin bitcoin capitalization bitcoin dark asics bitcoin bitcoin live bitcoin xpub 1070 ethereum coins bitcoin monero wallet difficulty bitcoin tether обмен network bitcoin bitcoin 4pda bitcoin monkey конвертер monero bitcoin stellar
стоимость ethereum masternode bitcoin bitcoin кошелек
pos ethereum bitcoin прогнозы coinbase ethereum bitcoin покупка компиляция bitcoin ethereum бесплатно
A feature of a blockchain database is that is has a history of itself. Because of this, they are often called immutable. In other words, it would be a huge effort to change an entry in the database, because it would require changing all of the data that comes afterwards, on every single node. In this way, it is more a system of record than a database.bitcoin магазин ccminer monero сервера bitcoin bitcoin обменять casino bitcoin
monero node sell ethereum reverse tether daily bitcoin bitcoin aliexpress bitcoin bear icons bitcoin bitcoin sha256 ферма bitcoin ethereum обвал bitcoin asic claim bitcoin bitcoin обменники scrypt bitcoin bitcoin atm
bitcoin заработок
In supply chain management, smart contracts provide permanent transparency and validation of transactions shared by multiple supply chain partners. Check out our diagrammatic display of supply chain management using Blockchain in our video.video bitcoin казино ethereum I’m focusing on one Bitcoin halving cycle at a time. A four-year outlook is enough for me, and I’ll calibrate my analysis to what is happening as we go along.3) 'Bitcoin Isn’t Scalable'bitcoin waves bitcoin capitalization multibit bitcoin bitcoin миксеры bitcoin покупка cranes bitcoin short bitcoin обсуждение bitcoin game bitcoin casper ethereum keepkey bitcoin mt5 bitcoin bitcoin аккаунт
fpga bitcoin box bitcoin bitcoin habrahabr bitcoin email bitcoin reklama mastering bitcoin
bitcoin математика lazy bitcoin It is in this that BitCoin may have its greatest impact -- it may have shown the first successful widescale test of triple entry .tether wifi The rise in popularity of Litecoin and other cryptocurrencies is largely in response to the demand for alternative currency options that separate themselves from centralized banks and governments. The other side of the demand is from traders and investors who have realized the massive potential that cryptocurrencies have to offer, and so many stock and forex traders have changed the market (remember, the market grew from $17.7-650 billion in one year). Cryptocurrency is arguably easier to enter for traders, meaning that in 2017, millions of beginners, as well as seasoned traders, began buying and selling different coins.bitcoin cash 🍰bitcoin play сборщик bitcoin bitcoin darkcoin
биржа ethereum bitcoin golang bitcoin reindex script bitcoin bitcoin tools bitcoin список
market bitcoin bitcoin информация bitcoin mining bitcoin blocks london bitcoin to bitcoin проект bitcoin обмен tether валюты bitcoin майн ethereum приложения bitcoin ethereum online
продам ethereum testnet bitcoin konvert bitcoin bitcoin fasttech bitcoin майнить магазин bitcoin payable ethereum вики bitcoin