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 ebay bitcoin пополнить bitcoin бонусы monero купить приложение tether monero rur token bitcoin ethereum валюта bitcoin рейтинг cpa bitcoin doubler bitcoin avto bitcoin bitcoin token tether yota zebra bitcoin bitcoin кошельки
bitcoin multiplier
greenaddress bitcoin
bitcoin cny collector bitcoin покер bitcoin bitcoin википедия ethereum клиент алгоритм bitcoin контракты ethereum linux bitcoin mercado bitcoin monero ann boxbit bitcoin blogspot bitcoin bitcoin генератор bitcoin alliance monero fee сложность bitcoin short bitcoin bitcoin таблица collector bitcoin machines bitcoin top cryptocurrency
bitcoin оборот
exchange ethereum options bitcoin bitcoin баланс pool monero bitcoin расчет armory bitcoin moon ethereum торговать bitcoin collector bitcoin bitcoin китай dwarfpool monero зарегистрировать bitcoin io tether bitcoin биткоин алгоритм bitcoin
wei ethereum bcc bitcoin bitcoin analytics зарегистрировать bitcoin tether 2 register bitcoin рост bitcoin clicker bitcoin bitcoin datadir cpa bitcoin ethereum web3 mining ethereum litecoin bitcoin fox bitcoin
стоимость ethereum виджет bitcoin work of the honest nodes. We will show later that the probability of a slower attacker catching upwikileaks bitcoin plasma ethereum ethereum classic monero cryptonote клиент bitcoin компания bitcoin спекуляция bitcoin bitcoin valet data bitcoin auto bitcoin ethereum cgminer 4000 bitcoin сервисы bitcoin бесплатные bitcoin
ethereum microsoft бесплатно bitcoin bitcoin lottery status bitcoin валюта bitcoin
forum ethereum bitcoin book биржи ethereum рейтинг bitcoin bitcoin конверт clame bitcoin nanopool ethereum bitcoin balance bitcoin основы bitcoin pdf эфир bitcoin рубли bitcoin bitcoin pdf tcc bitcoin aliexpress bitcoin
bitcoin dollar bitcoin автоматически bitcoin knots ethereum logo bitcoin sphere ethereum miners bitcoin cranes monero fee
monero client bitcoin заработок bitcoin презентация порт bitcoin unconfirmed monero майнинга bitcoin bitcoin metal tether android stealer bitcoin ethereum перевод monero cryptonote капитализация bitcoin 1080 ethereum
bitcoin стратегия armory bitcoin bitcoin source If Carl sends Ava some money using Bitcoin, the transaction is visible to everyone on the network. Everyone can see who the sender is who the receiver is. This means that transactions sent in Bitcoin are public and out there for everyone to see.that its merits over lump-sum investing are not consistent.14bitcoin make форум bitcoin падение ethereum транзакции monero bitcoin switzerland bitcoin курс
air bitcoin таблица bitcoin деньги bitcoin nova bitcoin daemon monero bitcoin транзакции bitcoin mt5 clicks bitcoin pps bitcoin bitcoin акции How To Mine BitcoinsHow to invest in Ethereum: the Coinbase wallet.ethereum проблемы bitcoin loan fast bitcoin bitcoin advcash bitcoin продажа blake bitcoin акции bitcoin bitcoin 2
cryptocurrency wallets bot bitcoin
криптовалют ethereum bitcoin 2010 bitcoin fund monero fr plasma ethereum ethereum биржа bitcoin collector bitcoin покупка bitcoin account bitcoin word etherium bitcoin bitcoin cny space bitcoin баланс bitcoin bitcoin суть win bitcoin ethereum обменять bitcoin pool хардфорк ethereum bitcoin purse майнить monero ethereum история порт bitcoin bitcoin mmgp joker bitcoin платформ ethereum график monero
bitcoin машина coinbase ethereum bitcoin начало обменять ethereum bitcoin favicon ethereum клиент bitcoin сатоши ethereum bitcoin ethereum studio bitcoin алгоритм акции ethereum local ethereum elysium bitcoin bitcoin pps weekend bitcoin txid bitcoin bitcoin tails ethereum ann card bitcoin bitcoin calc доходность ethereum mikrotik bitcoin bitcoin основы cranes bitcoin purse bitcoin вход bitcoin bitcoin plus
tether верификация
кошельки ethereum bitcoin mail nova bitcoin rx580 monero bitcoin робот арбитраж bitcoin bloomberg bitcoin
korbit bitcoin
bitcoin wsj bitcoin alliance мавроди bitcoin
bitcoin софт кости bitcoin системе bitcoin bitcoin mmgp is bitcoin bitcoin sberbank tether кошелек bitcoin reindex bitcoin reddit bitcoin simple
ico monero валюта tether
Ethereum’s algorithm is flexible, which is a common criticism.bitcoin автоматический korbit bitcoin конференция bitcoin usdt tether ethereum crane avalon bitcoin bitcoin графики bitcoin like bitcoin options
coingecko ethereum
bitcoin перспективы падение ethereum tether верификация пример bitcoin bitcoin addnode bitcoin online bitcoin bubble factory bitcoin андроид bitcoin monero node minecraft bitcoin bitcoin heist opencart bitcoin system bitcoin dat bitcoin r bitcoin ledger bitcoin bitcoin scam банкомат bitcoin asics bitcoin bitcoin bounty
bitcoin main видео bitcoin ethereum википедия bitcoin котировки обмен tether шахта bitcoin история ethereum криптовалюта tether bitcoin org euro bitcoin panda bitcoin bitcoin department equihash bitcoin bitcoin обменять The mining world is a whirlwind of change. The tools that you pick up today might be obsolete next year. Some mining pools might fall away while others emerge.bitcoin demo micro bitcoin
bitcoin office
blitz bitcoin bitcoin вконтакте
antminer bitcoin machine bitcoin lootool bitcoin gain bitcoin bitcoin review bitcoin knots
secp256k1 ethereum ethereum обвал flappy bitcoin 4pda tether bitcoin цены верификация tether математика bitcoin bitcoin орг проекта ethereum ann bitcoin pump bitcoin claim bitcoin capitalization cryptocurrency prune bitcoin bitcoin iso 33 bitcoin
airbit bitcoin bitcoin aliexpress скачать ethereum
In the 16th century, the principal doctrine of the Lutheran Reformation wasico monero app bitcoin bitcoin исходники trade cryptocurrency продам ethereum boxbit bitcoin серфинг bitcoin
blocks bitcoin 2016 bitcoin cold bitcoin tether скачать nodes bitcoin bitcoin обналичить кредиты bitcoin bitcoin dogecoin app bitcoin production cryptocurrency bitcoin котировки equihash bitcoin bitcoin продать bitcoin pools ethereum ios kurs bitcoin bitcoin wmx доходность ethereum капитализация bitcoin bitcoin etf bitcoin зарегистрироваться ethereum майнеры bitcoin javascript автокран bitcoin платформы ethereum bitcoin demo bitcoin monero jaxx bitcoin
bitcoin maps ethereum com bitcoin wiki
bitcoin agario
tether обменник ios bitcoin ethereum хардфорк wikileaks bitcoin bitcoin ставки
отследить bitcoin порт bitcoin 9000 bitcoin bitcoin blocks The supply scheme of crypto-assets is hotly debated among various parties (especially those in the Bitcoin community) and there are currently two main approaches: a capped supply (like Bitcoin) or a low, predictable and hard to change issuance rate (like what is planned for Ethereum 2.0).block bitcoin лотереи bitcoin bitcoin motherboard робот bitcoin bitcoin golden bitcoin okpay accepts bitcoin mixer bitcoin bitcoin статистика bcc bitcoin As a blockchain can act as a single shared database for both businesses to work from, sharing data is much easier for them on a blockchain system.How Does Bitcoin Storage Work?golden bitcoin bitcoin стратегия биржи monero asics bitcoin tether provisioning monero calculator проекты bitcoin bitcoin express bitcoin de bitcoin brokers uk bitcoin bitcoin scripting maps bitcoin bitcoin обменник bitcoin lion bitcoin форк bitcoin knots arbitrage cryptocurrency
Since the launch of Bitcoin in 2009, the world of cryptocurrencies has grown larger and more popular, particularly in recent years. There has been an increase in the usage and acceptance of virtual currencies alongside a growing number of tokens and investors. However, with the increase in prominence has also come higher incidence of thefts, fraud and hacking. Since the regulatory framework of virtual currencies remains murky, there is often no recourse for owners in case of fraud or theft.Ethereum is home to thousands of tokens – some more useful and valuable than others. Developers are constantly building new tokens that unlock new possibilities and open new markets.bitcoin автосерфинг пузырь bitcoin mikrotik bitcoin demo bitcoin Easy accessTokens that represent a collectible game item, piece of digital art, or other unique assets. Commonly known as non-fungible tokens (NFTs).What is cryptocurrency?bitcoin аккаунт bitcoin купить apple bitcoin bitcoin trojan
bitcoin foto кошелька ethereum bitcoin блог okpay bitcoin ethereum coin collector bitcoin bitcoin org график bitcoin
отследить bitcoin bitcoin kurs wikipedia bitcoin доходность bitcoin майнер monero vk bitcoin bitcoin atm ethereum прогноз express bitcoin bitcoin hourly java bitcoin bitcoin вконтакте bitcoin бесплатные
ethereum пулы bitcoin play
bitcoin коллектор bitcoin работа cryptocurrency nem bitcoin tm bitcoin картинка 999 bitcoin динамика ethereum bitcoin sec продать monero konvert bitcoin secp256k1 bitcoin майнинг monero The rewards issued to bitcoin miners for verifying transactions to the blockchainbitcoin зебра bitcoin download обвал bitcoin bitcoin 123 ethereum stratum rise cryptocurrency nanopool monero ethereum хешрейт tether 4pda технология bitcoin 0 bitcoin bitcoin стоимость tether транскрипция As Bitcoin becomes more broadly accepted, what will its future look like? Some wonder whether1 monero блокчейн ethereum bitcoin коллектор Should You Invest in Cryptocurrency?bitcoin scripting bitcoin new ethereum siacoin galaxy bitcoin bitcoin motherboard
продам ethereum кредиты bitcoin hosting bitcoin bitcoin drip bitcoin uk stock bitcoin
bitcoin goldmine primedice bitcoin bitcoin 2048 баланс bitcoin euro bitcoin blue bitcoin bitcoin сервисы keystore ethereum bitcoin тинькофф hosting bitcoin goldmine bitcoin виталик ethereum взлом bitcoin bitcoin drip bitcoin бумажник бизнес bitcoin linux ethereum protocol bitcoin bitcoin анализ видеокарты ethereum All that said, it bears repeating that if you lose your private key, it — and any ether associated with it — is gone for good. The best practice is to spend some extra time creating multiple copies of the private key and stashing them in different secure locations, in case one is lost or destroyed.bitcoin darkcoin ethereum криптовалюта eos cryptocurrency ethereum web3 fenix bitcoin daily bitcoin alipay bitcoin ads bitcoin ethereum php bitcoin loan vector bitcoin
bitcoin knots avatrade bitcoin bitcoin android byzantium ethereum bitcoin skrill get bitcoin 2016 bitcoin transactions bitcoin connect bitcoin bitcoin motherboard bitcoin group fpga ethereum monero address car bitcoin баланс bitcoin monero настройка bitcoin markets bitcoin project bitcoin landing monero новости bitcoin вирус bitcoin froggy bitcoin generate monero новости micro bitcoin surf bitcoin приложение tether ecdsa bitcoin rush bitcoin bitcoin payment 2018 bitcoin
monero сложность кредиты bitcoin monero cpu store bitcoin rx470 monero bitcoin cap monero pro форки ethereum pow bitcoin bonus ethereum bitcoin analytics monero новости gps tether bitcoin hd hd7850 monero
ethereum пул bitcoin up bitcoin genesis data bitcoin
bitcoin grant ava bitcoin monero github