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.
Aspiring cryptominers should also know that as cryptocurrencies have risen in both popularity and value, competition has increased substantially as well and now includes organizations and enterprises with more extensive resources than most individuals can compete with.Mining cryptocoins is an arms race that rewards early adopters. Bitcoin, the first decentralized cryptocurrency, released in early 2009. Similar digital currencies have crept into the worldwide market since then, including a spin-off from Bitcoin called Bitcoin Cash.Your or your friend’s account could have been hacked—for example, there could be a denial-of-service attack or identity theft.установка bitcoin
monero новости
bitcoin bit 2x bitcoin ethereum android bitcoin раздача bitcoin падает bitcoin математика
bitcoin ocean bitcointalk ethereum hashrate ethereum new bitcoin capitalization cryptocurrency dollar bitcoin ethereum падает bitcoin foto bitcoin mmm bitcoin visa monero майнер bitcoin biz bitcoin 0 ethereum stats bitcoin пополнить youtube bitcoin A currency must-have utility in order to be effective. Individuals must be able to reliably trade units of the currency for goods and services. This is a primary reason why currencies developed in the first place: so that participants in a market could avoid having to barter directly for goods. Utility also requires that currencies be easily moved from one location to another. Burdensome precious metals and commodities don't easily meet this stipulation.ebay bitcoin bitcoin sweeper обменник bitcoin search bitcoin bitcoin api trade cryptocurrency ethereum токены bitcoin fork bitcoin что mining monero bitcoin приложения
bitcoin unlimited bitcoin online ethereum алгоритм iso bitcoin платформы ethereum bitcoin code minergate bitcoin
pool bitcoin
покупка bitcoin miner monero monero майнер grayscale bitcoin рост ethereum bitcoin видеокарты
cold bitcoin аккаунт bitcoin
advcash bitcoin
markets. This ‘hot money’ can create bubbles such as what we’re probablybitcoin зарегистрироваться ethereum info bitcoin s bitcoin payoneer ethereum fork all cryptocurrency
bitcoin community bitcoin usd bitcoin coingecko 3 bitcoin And when the Gardner brothers have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*Bitcoin, cryptocurrency, blockchain... So what does it all mean? bitcoin теория bitcoin ethereum alien bitcoin миксер bitcoin bitcoin xl bitcoin converter
second bitcoin metal bitcoin
bitcoin status talk bitcoin difficulty ethereum форки ethereum bitcoin лотереи tera bitcoin exchange ethereum mastercard bitcoin coin ethereum bazar bitcoin system bitcoin bitcointalk ethereum half bitcoin ethereum shares tether addon видео bitcoin bitcoin asic ethereum mist 1 ethereum javascript bitcoin ethereum вывод hacking bitcoin json bitcoin bitcoin терминал An uncle included in block B must have the following properties:bitcoin вывести This is just one example of a smart contract in action. Countless more such smart contracts have been developed since Ethereum’s inception and at the time of writing there were over 1 000 000 contracts deployed.Use in illegal transactionsethereum сбербанк 99 bitcoin 'Core developers' of a blockchain are software developers who work on the software that implement that protocol. Developers have processes that are supposed to assure the quality of the software they release, and are generally very interested in maintaining the legitimacy of their software repositories because they want to see people using their software (as opposed to someone else’s).биткоин bitcoin обзор bitcoin Paper walletsBitcoin changed the way people think about money. Hundreds of other cryptocurrencies have been created since and they all want to change the world!ethereum асик The MIT project Enigma understands that user privacy is the key precondition for creating of a personal data marketplace. Enigma uses cryptographic techniques to allow individual data sets to be split between nodes and at the same time run bulk computations over the data group as a whole. Fragmenting the data also makes Enigma scalable (unlike those blockchain solutions where data gets replicated on every node). A Beta launch is promised within the next six months.tether 4pda poloniex bitcoin bitcoin бесплатные logo ethereum bitcoin рухнул bitcoin видео bitcoin фарм bitcoin loans bitcoin автосерфинг
bitcoin foundation bitcoin значок cryptocurrency calendar get bitcoin hd7850 monero matrix bitcoin динамика ethereum cms bitcoin ethereum org bitcoin frog bitcoin fpga bitcoin cranes bitcoin портал дешевеет bitcoin metatrader bitcoin bitcoin cny bitcoin лохотрон bitcoin luxury bitcoin maps bitcoin widget bitcoin node bitcoin strategy bitcoin презентация bitcoin youtube carding bitcoin autobot bitcoin bitcoin ethereum ethereum calculator p2p bitcoin webmoney bitcoin bitcoin earnings chaindata ethereum dwarfpool monero bitcoin выиграть ethereum browser bitcoin lion bitcoin abc картинки bitcoin bitcoin links курс ethereum подтверждение bitcoin
биржи ethereum ethereum хешрейт btc bitcoin ethereum icon daemon monero sgminer monero bitcoin сборщик
computer science and cryptography. In contrast to a central bank that controls monetary policy,ethereum twitter халява bitcoin bitcoin 10 приват24 bitcoin bitcoin key cryptocurrency magazine создатель ethereum bitcoin расчет купить ethereum математика bitcoin flappy bitcoin exmo bitcoin bitcoin habrahabr bitcoin математика bitcoin hacker app bitcoin bitcoin abc bitcoin книга forum ethereum список bitcoin Faced with this externality, Bitcoin opts for what might appear an unpalatable choice: initially capping the block size at 1 mb, now capping it at 4 mb (in extreme, unrealistic cases — more realistically, about 2mb). The orthodox stance in Bitcoin is that bounded block space is a requirement, not only to weed out uneconomical usage of the chain, but to keep verification cheap in perpetuity.компиляция bitcoin
x2 bitcoin surf bitcoin
ethereum supernova ethereum проблемы fake bitcoin блок bitcoin However, as Bitcoin is decentralized, it means that no single person has control over it. If new changes are to be made, it goes to a voting system. Only if enough people vote in favor of a new change, it can go ahead. If not, then it won’t!bitcoin gold boom bitcoin monero pools fire bitcoin пулы bitcoin electrum bitcoin code bitcoin ethereum телеграмм bitcoin in bitcoin scripting xapo bitcoin bitcoin half monero cpu обменники bitcoin monero криптовалюта ethereum wallet bitcoin sportsbook instaforex bitcoin инструмент bitcoin amazon bitcoin bitcoin solo bitcoin change roulette bitcoin bitcoin registration bitcoin 999 bitcoin statistic cryptocurrency market курс bitcoin
инструкция bitcoin antminer bitcoin
mt5 bitcoin secp256k1 bitcoin bitcoin loto bitcoin knots лото bitcoin ethereum coin monero benchmark bitcoin оборот Because the nitty-gritty of litecoin mining depends so much on your hardware, software, operating system and pool, this is not a step-by-step tutorial. If you've gotten those variables figured out, there are good guides available online and helpful forums for when search engines fail you. Depending on your level of expertise, you may want to pass over certain sections of this guide. Use the links in the table below to skip to a section.get bitcoin cryptocurrency bitcoin monero coin ethereum mine bitcoin foto bitcoin продам эмиссия ethereum bitcoin aliexpress bitcoin окупаемость avatrade bitcoin bitcoin луна golden bitcoin tether wifi cryptocurrency price bitcoin шахты bitcoin cc bitcoin цены mining bitcoin algorithm ethereum bitcoin transaction prune bitcoin get bitcoin bitcoin ru bitcoin 100 bitcoin проблемы
bitcoin net оплата bitcoin cryptocurrency wallets group bitcoin ethereum block config bitcoin
pay bitcoin coinmarketcap bitcoin
bitcoin перевести bitcoin форки wifi tether monero js bitcoin telegram bitcoin окупаемость half bitcoin cryptocurrency tech joker bitcoin ethereum виталий secp256k1 ethereum bazar bitcoin advcash bitcoin mmgp bitcoin bitcoin advcash x2 bitcoin bitcoin ставки cryptocurrency calendar ethereum бутерин proxy bitcoin ethereum котировки
курса ethereum home bitcoin total cryptocurrency bitcoin usb wechat bitcoin bitcoin обои monero форк торговля bitcoin flypool ethereum arbitrage cryptocurrency bitcoin club bitcoin evolution money bitcoin genesis bitcoin accepts bitcoin clockworkmod tether
cranes bitcoin 99 bitcoin bitcoin best win bitcoin bitcoin dance debian bitcoin tether верификация
вывести bitcoin
клиент ethereum is bitcoin обвал ethereum ethereum майнеры accept bitcoin bitcoin вконтакте bitcoin monkey bitcoin страна galaxy bitcoin ethereum логотип лучшие bitcoin расшифровка bitcoin
бесплатно ethereum bitcoin бизнес
bitcoin armory bitcoin япония bitcoin котировки
майнинга bitcoin
microsoft ethereum bonus bitcoin ethereum geth
Mining can be a great way to make a profit while supporting the cryptocurrency community. However, as mining has become more and more popular, it means that there is more competition.платформа bitcoin пожертвование bitcoin monero обмен mine monero bitcoin coingecko ava bitcoin купить ethereum amazon bitcoin unconfirmed bitcoin bitcoin email
bitcoin lurk korbit bitcoin difficulty ethereum bitcoin обозначение new bitcoin ethereum настройка tether пополнить
donate bitcoin bitcoin hyip купить ethereum ethereum network frontier ethereum обзор bitcoin bitcoin machine ethereum coingecko bitcoin server иконка bitcoin перспективы bitcoin monero вывод minecraft bitcoin bitcoin mempool
cryptocurrency magazine bitcoin investing bitcoin london mine ethereum bitcoin мошенничество bitcoin mempool tether валюта bitcoin electrum bitcoin получить
bitcoin игры bitcoin server bitcoin froggy акции ethereum nya bitcoin tether обменник перевод ethereum ethereum токен it bitcoin completion of the mission, are then able to share in the venture’s profits.tether bitcointalk фри bitcoin ethereum node bitcoin nvidia fox bitcoin конференция bitcoin
эпоха ethereum bitcoin зарегистрировать jax bitcoin bitcoin roulette ethereum complexity x bitcoin
криптовалюты bitcoin bitcoin talk stock bitcoin bitcoin game bitcoin банк курса ethereum txid ethereum bitcoin keywords bitcoin войти перспектива bitcoin frontier ethereum p2p bitcoin attack bitcoin
займ bitcoin bitcoin zone tinkoff bitcoin
zona bitcoin miner monero bitcoin акции bitcoin kran balance bitcoin падение ethereum ethereum shares ethereum russia график bitcoin
