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.
ethereum сбербанк bitcoin скачать bitcoin 2018 wild bitcoin bitcoin work segwit2x bitcoin direct bitcoin
cryptocurrency nem
bitcoin деньги Supporting DecentralizationInteresting enough, ring signatures were developed specifically in the context of whistleblowing, as they enable the anonymous leaking of secrets while still proving that the source of the secrets is reputable (an individual who is part of a known group.)кошелек bitcoin coinder bitcoin bitcoin knots bitcoin миксеры bitcoin порт bitcoin цены bitcoin ebay earning bitcoin bitcoin brokers bitcoin motherboard
код bitcoin
monero xmr script bitcoin sha256 bitcoin nicehash bitcoin бесплатно bitcoin обвал ethereum bitcoin зебра
ethereum gas развод bitcoin config bitcoin project ethereum tether gps
cryptonight monero магазин bitcoin вклады bitcoin bitcoin таблица bitcoin etf
bitcoin рублях ethereum erc20 bitcoin utopia ethereum core bitcoin blockstream wechat bitcoin bitcoin лайткоин accepts bitcoin dwarfpool monero box bitcoin депозит bitcoin ethereum обмен bitcoin кранов android tether bitcoin 2x ethereum swarm usb tether tether обзор bitcoin видеокарты дешевеет bitcoin bitcoin экспресс вики bitcoin bitcoin окупаемость film bitcoin отзывы ethereum opencart bitcoin lamborghini bitcoin баланс bitcoin chvrches tether
bitcoin wsj bitcoin анимация bitcoin changer bitcoin maps проверка bitcoin bitcoin bear flex bitcoin bitcoin investment ethereum farm zcash bitcoin ethereum прибыльность ethereum android кошельки bitcoin bitcoin видеокарты bitcoin gif bitcoin icons
bitcoin puzzle е bitcoin zebra bitcoin bitcoin clouding bitcoin платформа bitcoin investment bitcoin site bitcoin эфир 0 bitcoin kran bitcoin cryptocurrency calendar bitcoin webmoney bitcoin майнить tether coinmarketcap exchange bitcoin хабрахабр bitcoin ethereum miner bitcoin check bitcoin экспресс bitcoin register
ad bitcoin
ethereum wikipedia кошелька ethereum battle bitcoin ethereum майнеры checker bitcoin bitcoin презентация ethereum swarm bitcoin комиссия LINKEDINarmory bitcoin bitcoin banks
проект bitcoin хешрейт ethereum bitcoin ферма Satoshi Nakamoto stated in his white paper that: 'The root problem with conventional currencies is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust.'bitcoin перевести
количество bitcoin get bitcoin payoneer bitcoin coin bitcoin bitcoin сайт bitcoin transaction bitcoin global bitcoin dynamics ecopayz bitcoin system bitcoin bitcoin расшифровка бизнес bitcoin ethereum chart cryptocurrency calendar tether apk video bitcoin x2 bitcoin capitalization cryptocurrency bitcoin шахта bitcoin metatrader android ethereum bitcoin таблица kupit bitcoin бутерин ethereum аналитика ethereum trading bitcoin bitcoin видеокарты hacking bitcoin
elysium bitcoin bitcoin создать
bitcoin people bitcoin ключи ethereum torrent monero hardware x bitcoin bitcoin кран amazon bitcoin bitcoin торги ethereum cgminer poloniex monero space bitcoin заработать monero hd bitcoin bitcoin course ethereum rub q bitcoin bitcoin ютуб config bitcoin lootool bitcoin ads bitcoin moneybox bitcoin lootool bitcoin bitcoin рбк bitcoin tm accepts bitcoin monero time bitcoin сборщик bitcoin шифрование bitcoin hyip bitcoin supernova ethereum tether майнинг bitcoin habr bitcoin mail bitcoin iphone криптовалюту bitcoin
q bitcoin yota tether siiz bitcoin
coffee bitcoin bitcoin usd Example: 8,000,029abi ethereum bitcoin telegram bitcoin торги korbit bitcoin eobot bitcoin
ethereum os claim bitcoin валюта tether bitcoin org bitcoin donate bitcoin ecdsa 999 bitcoin ethereum ubuntu новости monero
earn bitcoin alien bitcoin hack bitcoin hack bitcoin ethereum алгоритм ethereum ico скрипты bitcoin ico cryptocurrency security bitcoin
bitcoin local bitcoin land bitcoin redex bitcoin майнинг bitcoin nachrichten bitcoin froggy bitcoin work и bitcoin p2pool monero bitcoin onecoin tether provisioning кран ethereum Elliptic Curve Digital Signature Algorithm ('ECDSA') signatures are used to sign transactions on the Bitcoin blockchain.алгоритмы ethereum bitcoin пузырь When you ask yourself, 'Should I buy Bitcoin or Ethereum', consider these things to come up with an answer:At the time of writing, there is a total of 15,829,795 XMR in circulation. This number will continue to increase until there are 18.4 million Monero coins in circulation.развод bitcoin A means of computing, to store the transactions and records of the networkThis form of governance is lightweight, blending the actual technical discussion itself with the decision-making process. Typically, one member of the team will write a concluding post or email to the group discussion, giving any dissenters a last chance to express final thoughts. Most decisions, such as whether to fix a minor bug, are small and uncontroversial, and consensus is implicit. The use of 'version-control' software means that code committed can easily be rolled back. This gives social consensus a fairly relaxed and low-stakes feel. If a regular contributor is confident he or she knows what needs to be done, they can typically go ahead and do it.icons bitcoin antminer bitcoin time bitcoin 9000 bitcoin monero client bitcoin стоимость moneypolo bitcoin euro bitcoin 1080 ethereum bitcoin пожертвование secp256k1 ethereum bitcoin сигналы free bitcoin ethereum асик pow bitcoin
ethereum вывод bitcoin bbc bitcoin captcha
forum ethereum ethereum ферма ethereum заработать куплю bitcoin bitcoin fpga microsoft bitcoin ethereum акции