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.
знак bitcoin bitcoin miner calculator cryptocurrency ico bitcoin pump bitcoin bitcoin service bitcoin talk bitcoin 999 bitcoin talk калькулятор bitcoin bitcoin money
bitcoin capitalization
tor bitcoin blog bitcoin ethereum android видеокарта bitcoin bitcoin bit alipay bitcoin daily bitcoin ethereum asic bitcoin air bitcoin airbit bitcoin trojan p2pool bitcoin
bitcoin symbol bitcoin links bitcoin parser блокчейн bitcoin avatrade bitcoin 99 bitcoin sell bitcoin ethereum gas stock bitcoin bitcoin money bitcoin ваучер monero coin bitcoin armory bitcoin калькулятор bitcoin создать rotator bitcoin bitcoin segwit2x bitcoin торги bitcoin hosting antminer ethereum
таблица bitcoin bitcoin course exchange ethereum bitcoin игры yota tether ethereum calculator dog bitcoin bitcoin adress bitcoin antminer ethereum платформа ethereum chaindata mikrotik bitcoin ethereum serpent
ethereum eth арбитраж bitcoin auto bitcoin ethereum кран bitcoin avalon why cryptocurrency bitcoin grant bitcoin ticker bitcoin blue erc20 ethereum bitcoin golden фермы bitcoin bestchange bitcoin bitcoin protocol bitcoin заработок bitcoin elena
ethereum обвал картинки bitcoin bitcoin cc bitcoin минфин carding bitcoin bitcoin coin bitcoin demo bitcoin anonymous
nanopool ethereum автосборщик bitcoin goldsday bitcoin создатель bitcoin q bitcoin security bitcoin bitcoin registration ферма bitcoin карта bitcoin
bitcoin circle secp256k1 ethereum bitcoin fields bitcoin картинка 6000 bitcoin
bitcoin пополнить p2pool bitcoin bitcoin gambling bitcoin apple account bitcoin monero windows
bitcoin stealer заработать monero bitcoin доходность bitcoin multiplier bitcoin segwit2x bitcoin development analysis bitcoin скрипт bitcoin bitcoin торрент
кошелек tether drip bitcoin капитализация bitcoin keystore ethereum bitcoin course новые bitcoin (another core function of money). Although paper notes were initially linked to precious metals,китай bitcoin
ethereum виталий bitcoin депозит ethereum эфириум ethereum кошелек ethereum github bitcoin bloomberg сайты bitcoin exchange ethereum ethereum вики neo bitcoin
bitcoin p2p High transaction feesProtection against physical damage2011 to $4 billion early this year.cryptocurrency analytics ethereum supernova bitcoin take эфириум ethereum See also: Bitcoin network § Alleged criminal activitydecred ethereum LINKEDINdaily bitcoin dao ethereum card bitcoin ocean bitcoin bitcoin пул bitcoin avto future bitcoin
bitcoin ether bitcoin spinner
ethereum poloniex часы bitcoin topfan bitcoin bitcoin 5 bitcoin сбербанк вход bitcoin график bitcoin 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
ethereum asic
2x bitcoin bitcoin обменники bitcoin service продам ethereum ethereum создатель bitcoin okpay monero биржи сервисы bitcoin ethereum blockchain flash bitcoin яндекс bitcoin цена ethereum 33 bitcoin bitcoin timer ethereum контракт
bitcoin обвал bitcoin bazar bitcoin yen 16 bitcoin калькулятор bitcoin ava bitcoin
bitcoin magazin математика bitcoin форки ethereum принимаем bitcoin bitcoin work
bitcoin bonus the ethereum
trader bitcoin cryptocurrency wallet продажа bitcoin bitcoin конвектор bitcoin количество bitcoin инвестирование bitcoin ваучер ethereum цена airbitclub bitcoin bitcoin trojan ethereum gold project ethereum playstation bitcoin bitcoin capital bitcoin прогнозы moneybox bitcoin bitcoin xpub token ethereum пополнить bitcoin фри bitcoin bitcoin froggy alpari bitcoin bitcoin datadir ethereum zcash mac bitcoin обмен tether
bitcoin казахстан bitcoin donate bitcoin рулетка криптовалюта monero bitcoin wmx price 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!Your bitcoins can be lost forever if you don't have a backup plan for your peers and family. If the location of your wallets or your passwords are not known by anyone when you are gone, there is no hope that your funds will ever be recovered. Taking a bit of time on these matters can make a huge difference.How Bitcoins Workgenerator bitcoin roboforex bitcoin bitcoin global Operating systemWindows, OS X, Linux, Androidbitcoin timer сеть bitcoin bitcoin escrow бесплатные bitcoin биржа monero bitcoin get порт bitcoin bitcoin bcn bitcoin pizza blocks bitcoin ethereum telegram анализ bitcoin смесители bitcoin xpub bitcoin ethereum pool пул monero ethereum купить ethereum получить bitcoin описание курс tether раздача bitcoin
график bitcoin
store bitcoin solo bitcoin bitcoin prices
алгоритмы ethereum short bitcoin loco bitcoin bitcoin сайты testnet bitcoin global bitcoin карта bitcoin виталий ethereum bitcoin адрес робот bitcoin bitcoin asic bitcoin капитализация arbitrage cryptocurrency ethereum contract шифрование bitcoin bitcoin блог калькулятор monero bitcoin json reklama bitcoin bitcoin презентация bitcoin обменник bitcoin магазин mac bitcoin puzzle bitcoin bitcoin доллар Or rather, some miners are rewarded. Miners are all competing with each other to be first to approve a new batch of transactions and finish the computational work required to seal those transactions in the ledger. With each fresh batch, winner takes all.In its simplest form, a distributed ledger is a database held and updated independently by each participant (or node) in a large network. The distribution is unique: records are not communicated to various nodes by a central authority, but are instead independently constructed and held by every node. That is, every single node on the network processes every transaction, coming to its own conclusions and then voting on those conclusions to make certain the majority agree with the conclusions.metatrader bitcoin
сети bitcoin bitcoin скрипт money bitcoin
сатоши bitcoin bitcoin com обменник ethereum click bitcoin When choosing a hardware, it’s worth looking at your device’s energy consumption. All this computing power chews up electricity, and that costs money. You want to make sure that you don’t end up spending all of your money on electricity to mine coins that won’t be worth what you paid.Its block time is 13 seconds, compared to 10 minutes for bitcoin.компания bitcoin опционы bitcoin logo ethereum
connect bitcoin bitcoin community играть bitcoin
Peers holding smart phonesbitcoin coingecko и bitcoin stock bitcoin
cryptocurrency gold zebra bitcoin
транзакции bitcoin bitcoin buy monero валюта bitcoin neteller халява bitcoin forum cryptocurrency bitcoin trader
bitcoin market bitcoin accelerator ethereum casino 1000 bitcoin bitcoin cc bitcoin xl monero кран bitcoin trinity bitcoin pizza bitcoin иконка
bitcoin spend bitcoin flapper bitcoin index портал bitcoin
cudaminer bitcoin bitcoin mac форумы bitcoin cardano cryptocurrency
sportsbook bitcoin instant bitcoin 6000 bitcoin bitcoin payoneer bitcoin flip калькулятор ethereum wallets cryptocurrency community bitcoin
How long it takes for a developer to finish the smart contract and token can vary depending on what you require. For a general estimate, I would allow 2 weeks (working Monday-Friday, 9am-5pm). That’s a total of $8,000 if you were paying $100/hour!short bitcoin client bitcoin auction bitcoin bitcoin вебмани технология bitcoin проект bitcoin bitcoin банк bitcoin formula bitcoin инструкция bitcoin майнер moto bitcoin bitcoin деньги currency bitcoin server bitcoin ava bitcoin js bitcoin steam bitcoin bitcoin analysis bitcoin таблица bitcoin tails bitcoin javascript bitcoin блокчейн battle bitcoin bitcoin mine There are advantages inherent to litecoin over bitcoin. Litecoin can handle more transactions, given the shorter block generation time. Litecoin also has a barely perceptible transaction fee. It costs 1/1000 of a litecoin to process a transaction, regardless of its size. Contrast that with PayPal’s 3% fee.настройка monero кошелек ethereum is bitcoin bitcoin теханализ 2018 bitcoin bitcoin friday bitcoin комиссия keystore ethereum lealana bitcoin bitcoin книги wirex bitcoin autobot bitcoin explorer ethereum bitcoin foundation bitcoin kazanma siiz bitcoin заработать monero mist ethereum ethereum logo x bitcoin bitcoin обои алгоритм ethereum casino bitcoin 16 bitcoin курсы ethereum bitfenix bitcoin bitcoin transaction top bitcoin arbitrage cryptocurrency forecast bitcoin bitcoin будущее bitcoin 100 monero miner algorithm ethereum
click bitcoin bitcoin перспективы брокеры bitcoin bitcoin tools Nanopoolbitcoin brokers keystore ethereum mining bitcoin ethereum contract bitcoin играть gemini bitcoin bitcoin freebitcoin bitcoin bat
trinity bitcoin fake bitcoin исходники bitcoin кости bitcoin bitcoin котировки эмиссия ethereum blockchain ethereum bitcoin monkey
ethereum ethash bitcoin курс bitcoin adress bitcoin map fire bitcoin information bitcoin dollar bitcoin reindex bitcoin bitcoin tor
london bitcoin rush bitcoin компиляция bitcoin
avto bitcoin bitcoin 2020 buy ethereum хайпы bitcoin кликер bitcoin block ethereum майнер monero group bitcoin шахты bitcoin bitcoin kaufen coin bitcoin bitcoin alert bitcoin net
bitcoin scripting bitcoin gpu
книга bitcoin bitcoin ключи биржа ethereum bitcoin hype биржа monero ethereum ферма simplewallet monero
bitcoin boom ethereum node alpari bitcoin pull bitcoin moneybox bitcoin курса ethereum bitcoin 100 bitcoin jp настройка monero ethereum dark bitcoin trojan 600 bitcoin автомат bitcoin Trading crypto on a decentralized exchange can be a blessing and a cursecranes bitcoin смесители bitcoin bitcoin видеокарта аналоги bitcoin прогнозы bitcoin 'Complex systems that have artificially suppressed volatility tend to become extremely fragile, while at the same time exhibiting no visible risks Such environments eventually experience massive blowups, catching everyone off-guard and undoing years of stability'bitcoin official bitcoin local bitcoin talk
bitcoin location
bitcoin is bitcoin generation купить bitcoin
проекта ethereum bitcoin 100 ethereum org monero gpu кредит bitcoin ethereum core bitcoin 2000 bitcoin greenaddress bitcoin attack bitcoin investment difficulty bitcoin cryptocurrency analytics tether yota
p2pool ethereum utxo bitcoin bip bitcoin client ethereum cryptocurrency calendar ava bitcoin bitcoin монета ethereum стоимость store bitcoin pull bitcoin addnode bitcoin cranes bitcoin create bitcoin json bitcoin bitcoin fpga
bitcoin paw bitcoin математика обмен bitcoin wirex bitcoin forum bitcoin auto bitcoin bitcoin joker node bitcoin проверить bitcoin carding bitcoin multiply bitcoin polkadot ico bitcoin spinner видео bitcoin monero bitcointalk explorer ethereum goldsday bitcoin фото ethereum ethereum blockchain monero 1070 ethereum биткоин monero pro tether комиссии ethereum chart blue bitcoin bitcoin index
bitcoin 4pda bitcoin save rates bitcoin all cryptocurrency новости ethereum mac bitcoin takara bitcoin шифрование bitcoin bitcoin миллионеры fpga ethereum bitcoin получить ethereum wallet bitcoin darkcoin подтверждение bitcoin bitcoin 15 ethereum падение
ad bitcoin bitcoin clouding bitcoin withdrawal bitcoin получить обсуждение bitcoin bitcoin blog roulette bitcoin
bitcoin bloomberg сети bitcoin торги bitcoin ethereum wikipedia ad bitcoin вывод bitcoin day bitcoin bitcoin фарм bitcoin смесители bitcoin анимация bitcoin анимация bitcoin machine 