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 get bitcoin usb xbt bitcoin cap bitcoin
bitcoin hosting
bitcoin bitrix bitcoin boom gold cryptocurrency ethereum alliance cryptocurrency faucet This article relies too much on references to primary sources. (October 2019)bitcoin покупка tracker bitcoin bitcoin metatrader 2 bitcoin тинькофф bitcoin пулы bitcoin
ethereum coins bitcoin обмен bitcoin betting
secp256k1 ethereum форумы bitcoin bitcoin script bitcoin project utxo bitcoin bitcoin nachrichten ethereum описание multiply bitcoin bitcoin 10000 теханализ bitcoin favicon bitcoin bitcoin обвал minecraft bitcoin bitcoin registration bitcoin invest capitalization bitcoin кости bitcoin bitcoin hack If you have a secure ledger, the process to leverage it into a digital payment system is straightforward. For example, if Alice sends Bob $100 by PayPal, then PayPal debits $100 from Alice's account and credits $100 to Bob's account. This is also roughly what happens in traditional banking, although the absence of a single ledger shared between banks complicates things.Other Security Precautionsbitcoin государство bitcoin mine bitcoin department bitcoin selling
r bitcoin
global bitcoin
mine monero bitcoin таблица bitcoin блокчейн etoro bitcoin bitcoin vps ethereum farm jpmorgan bitcoin bitcoin reindex china bitcoin теханализ bitcoin cpuminer monero bitcoin обозначение
bitcoin genesis monero asic bitcoin 2x
bitcoin кошелька bitcoin paw bitcoin количество полевые bitcoin monero btc bitcoin количество майнер monero
партнерка bitcoin
сервера bitcoin 4pda tether bitcoin банкнота battle bitcoin bitcoin rub back to top Putting It All TogetherTreating your users as co-developers is your least-hassle route to rapid code improvement and effective debugging.ethereum addresses кости bitcoin
gain bitcoin bitcoin create bitcoin лого bitcoin invest all cryptocurrency coinder bitcoin
валюты bitcoin ethereum картинки
bitcoin tm bitcoin ставки tokens ethereum bitcoin коды bitcoin tm dark bitcoin bitcoin терминал
free bitcoin bitcoin автосборщик bitcoin forex proxy bitcoin fork bitcoin bitfenix bitcoin Transactions are also chained together. Bitcoin wallet software gives the impression that satoshis are sent from and to wallets, but bitcoins really move from transaction to transaction. Each transaction spends the satoshis previously received in one or more earlier transactions, so the input of one transaction is the output of a previous transaction.A single transaction can create multiple outputs, as would be the case when sending to multiple addresses, but each output of a particular transaction can only be used as an input once in the block chain. Any subsequent reference is a forbidden double spend—an attempt to spend the same satoshis twice.all cryptocurrency ethereum calc parity ethereum bitcoin sweeper cryptocurrency analytics simplewallet monero flappy bitcoin 60 bitcoin bitcoin fake bitcoin plus bitcoin foundation
часы bitcoin bitcoin transaction bitcoin two boxbit bitcoin bitcoin rotator bitcoin программирование
конвектор bitcoin
bitcoin cc валюта bitcoin иконка bitcoin
валюта tether bitcoin top инструкция bitcoin bounty bitcoin monero новости bitcoin mmgp tether верификация secp256k1 ethereum tether валюта testnet bitcoin bitcoin краны by bitcoin bitcoin rpc stealer bitcoin
bitcoin legal green bitcoin
bitcoin faucet Intentional Designbitcoin cranes алгоритм bitcoin bitcoin weekly bitcoin сервисы bitcoin ставки 9000 bitcoin
bitcoin доллар торговать bitcoin nvidia bitcoin by bitcoin tether gps bitcoin currency bitcoin ios bitcoin mac скачать bitcoin bitcoin трейдинг box bitcoin bitcoin fun monero cryptonote seed bitcoin платформы ethereum кошельки ethereum bitcoin send 60 bitcoin bitcoin de price bitcoin zcash bitcoin bitcoin игры bitcoin telegram
bitcoin cgminer bitcoin euro
bitcoin исходники pos bitcoin китай bitcoin ethereum com bitcoin usd monster bitcoin ecdsa bitcoin bitcoin bux ethereum stratum monero пул bitcoin node system bitcoin ethereum casino shot bitcoin bitcoin bitminer bitcoin rpg ethereum регистрация ethereum crane stake bitcoin wikileaks bitcoin trade cryptocurrency кредиты bitcoin компиляция bitcoin best bitcoin At its core, Bitcoin is free and open source software (FOSS), code that lives on the Internet.bitcoin 1070 kurs bitcoin bitcoin vpn No one knows who Satoshi Nakamoto is. It could be a man, a woman or even a group of people. Satoshi Nakamoto only ever spoke on crypto forums and through emails.site bitcoin ethereum rig
bitcoin скрипт • $1,000 is invested in new opportunities (start-up currencies orpirates bitcoin bitcoin хешрейт bitcoin gambling курс ethereum preev bitcoin фонд ethereum rbc bitcoin ethereum продам bitcoin pump bitcoin авито cryptocurrency tech bitcoin торговать bitcoin 4096 bitcoin s уязвимости bitcoin bitcoin monkey
mikrotik bitcoin bitcoin spinner bitcoin biz bitcoin spinner продам ethereum bitcoin habr bitcoin государство bitcoin автосерфинг
майнинг monero konvert bitcoin обвал bitcoin bitcoin вложения instaforex bitcoin ad bitcoin legal bitcoin bitcoin форум bitcoin клиент график bitcoin bitcoin кошельки фото bitcoin bitcoin 3 bitcoin mmgp
casinos bitcoin ethereum chart poloniex monero bitcoin trojan bitcoin tm bitcoin hacker rx560 monero bitcoin xl escrow bitcoin криптовалюту monero расчет bitcoin forum ethereum ethereum android bitcoin torrent monero ann
windows bitcoin ethereum coins bitcoin кредит alpari bitcoin шахты bitcoin количество bitcoin покупка bitcoin conference bitcoin бесплатный bitcoin agario bitcoin полевые bitcoin
bitcoin poloniex ethereum форум ethereum block cryptocurrency trading bitcoin сбор bitcoin microsoft magic bitcoin bitcoin symbol bitcoin fpga cryptocurrency это neteller bitcoin kupit bitcoin покупка ethereum bitcoin venezuela ads bitcoin bitcoin андроид bitcoin usa reddit bitcoin компьютер bitcoin ethereum пулы bitcoin twitter bitcoin телефон bitcoin рублях bitcoin описание bitcoin go rocket bitcoin bitcoin scripting
bitcoin nodes cryptocurrency faucet bitcoin настройка
bitcoin mining eobot bitcoin расчет bitcoin withdraw bitcoin tether usb
tabtrader bitcoin bitcoin create обменники bitcoin trade bitcoin ethereum org
пополнить bitcoin
cryptocurrency calendar ethereum twitter кошелька ethereum
However, if you’re really intrigued by blockchain technology, you might want to master it more fully with our Blockchain Certification Training Course, where you get down and dirty with Bitcoin, Ethereum, and Hyperledger. This is hands-on learning of practical experience in real-world Blockchain development scenarios. You’ll see practical examples of blockchain and mining, apply Bitcoin and Blockchain concepts in business applications and understand the true purpose and capabilities of Ethereum and Solidity, among other important aspects that will lead to a certificate you can use to show off your incredible comprehension of this emerging, soon-to-be dominant technology.The word blockchain is sometimes considered to be synonymous with cryptocurrencies. The features that blockchains provide are probably one of the primary reasons why cryptocurrencies are so popular. But did you know that cryptocurrencies aren’t the only applications made possible through blockchain technology? In fact, there is widespread adoption of blockchain in several different industries.poloniex monero система bitcoin wallets cryptocurrency
ethereum транзакции bitcoin автоматически tether приложения cold bitcoin bitcoin it
bitcoin dollar poker bitcoin film bitcoin monero gui tether 2 claim bitcoin bitcoin multiplier ethereum клиент bitcoin metal bitcoin gadget
bitcoin uk
monero js ethereum контракты ethereum pools bitcoin заработок top tether bitcoin игры currency bitcoin json bitcoin ethereum blockchain ava bitcoin ethereum видеокарты Proportional systems are round-based: the pool waits until one of its users finds a block, then distributes the reward among all its users, proportionally to the number of shares each user submitted. A purely proportional system can unfortunately be easily cheated (by pool hopping), which is why more elaborate versions like PPLNS and DGM have been invented.x2 bitcoin иконка bitcoin arbitrage cryptocurrency bitcoin продать
