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.
token ethereum bitcoin transaction 2016 bitcoin bitcoin generator математика bitcoin maps bitcoin bitcoin 20 bitcoin balance bitcoin mail british bitcoin airbitclub bitcoin bitcoin easy bitcoin exchanges
график monero
bitcoin masters зарегистрироваться bitcoin bitcoin автоматически loco bitcoin decred cryptocurrency tinkoff bitcoin 1070 ethereum проверить bitcoin - Satoshi NakamotoThat’s fine to say in 2008, after many doublings. Would memory be a problem in the 1990s? It doesn’t have to be. The difficulty of bitcoin mining is adjustable, so the problem boils down to:Bitcoin is a digital currency;пулы ethereum easy bitcoin bitcoin rt ethereum tokens
бесплатные bitcoin купить monero ann ethereum masternode bitcoin
boom bitcoin apple bitcoin bitcoin sec киа bitcoin добыча bitcoin bitcoin описание kurs bitcoin ethereum free ethereum coin
bitcoin терминал alipay bitcoin A UTXO transaction works like cash payment between two parties: Alice gives money to Bob and receives change (i.e., unspent amount). In comparison, blockchains like Ethereum rely on the account model.king bitcoin king bitcoin курсы bitcoin bitcoin вложения daemon monero
london bitcoin bitcoin кредиты ethereum btc monero amd The Seven Network Effects of Bitcoinbitcoin hashrate bitcoin 2048 direct bitcoin token ethereum ethereum эфир математика bitcoin bitcoin q хардфорк monero bitcoin майнить ethereum пулы халява bitcoin bitcoin bux bitcoin cloud world of blockchain explained.описание bitcoin sgminer monero rpg bitcoin Hundreds of volunteers from around the world store a copy of the complete Ethereum blockchain, which is quite long. This is one feature that makes Ethereum decentralized. mac bitcoin blog bitcoin взлом bitcoin bitcoin футболка сеть bitcoin форумы bitcoin nubits cryptocurrency tether курс amazon bitcoin технология bitcoin bitcoin криптовалюта space bitcoin ecopayz bitcoin The governments of Syria, Yemen, and Libya have all failed to protect their people from violent civil wars.платформа bitcoin bitcoin терминал bitcoin rotator ethereum twitter
Once validation criteria are met, the lucky block is propagated around the network and accepted by each full node, and it gets appended to a chain of predecessor blocks; at this time the winning miner is also paid.99 bitcoin Due to the design of bitcoin, all retail figures are only estimates. According to Tim Swanson, head of business development at a Hong Kong-based cryptocurrency technology company, in 2014, daily retail purchases made with bitcoin were worth about $2.3 million. MIT Technology review estimates that, as of February 2015, fewer than 5,000 bitcoins per day (worth roughly $1.2 million at the time) were being used for retail transactions, and concludes that in 2014 'it appears there has been very little if any increase in retail purchases using bitcoin.'foto bitcoin bitcoin capitalization майн ethereum bitcoin trend шахта bitcoin bank cryptocurrency bitcoin кранов titan bitcoin buy tether Cryptocurrency Cloud Mining Companiesbitcoin эмиссия For more information on how to buy bitcoin, see here. And for some examples of what you can spend it on, see here.bio bitcoin валюта tether trading bitcoin вики bitcoin bitcoin суть fx bitcoin
аккаунт bitcoin bitcoin reddit
bitcoin перевод кран ethereum wikipedia cryptocurrency
enterprise ethereum water bitcoin bitcoin кошелька bitcoin trinity bitcoin s transactions bitcoin
china bitcoin
сети bitcoin компьютер bitcoin
monero proxy
контракты ethereum bitcoin сигналы bubble bitcoin bitcoin x2 gift bitcoin bitcoin plus win bitcoin takara bitcoin ethereum хешрейт продам bitcoin bitcoin xt download bitcoin freeman bitcoin world bitcoin token bitcoin bitcoin настройка bitcoin microsoft bitcoin knots system bitcoin bitcoin cran автокран bitcoin bitcoin это bitcoin приложения bitcoin tm bitcoin airbit
key bitcoin ethereum habrahabr запуск bitcoin ротатор bitcoin ethereum вывод bitcoin сбербанк bitcoin подтверждение акции bitcoin games bitcoin ethereum charts bitcoin count bitcoin information demo bitcoin ethereum проблемы bitcoin цены bitcoin dice ethereum покупка exchange bitcoin bitcoin мониторинг cms bitcoin
алгоритмы bitcoin rx580 monero ethereum coins bitcoin bazar bitcoin миллионеры bitcoin split bitcoin boom ethereum stats ethereum виталий reddit cryptocurrency auction bitcoin monero coin bitcoin euro bitcoin cms bitcoin office bitcoin курс bitcoin png bitcoin official 60 bitcoin tp tether bitcoin описание bitcoin gpu bitcoin окупаемость bitcoin joker bitcoin rpg 1070 ethereum multiplier bitcoin Some of these clever folks, called cypherpunks, thought that governments and corporations had too much power over our lives. They wanted to use the internet to give the people of the world more freely. Using cryptography, cypherpunks wanted to allow users of the internet to have more control over their money and information. As you can tell, the cypherpunks didn’t like trusted third parties at all!Ready? Here’s what is blockchain in simple words:Litecoin ATMs seem to be in great demand lately. A few months ago, there were news reports of Litecoin ATMs proliferating around the globe. According to a news report on Coinatmradar, there were 50 cryptocurrency ATMs that received Litecoin installation in a month. The majority of Litecoin ATMs are situated in- no surprises there- the United States of America. Apart from that, there is also one Litecoin ATM that has been set up in Toronto, Canada. It is the first time another cryptocurrency can be bought and sold in a physical machine, in a city.bitcoin nyse bitcoin net bitcoin ферма bitcoin банк bitcoin location bitcoin прогноз bitcoin миллионеры сбор bitcoin bitcoin пул bitcoin eu bitcoin 100 ютуб bitcoin ubuntu bitcoin addnode bitcoin kaspersky bitcoin bitcoin generation
india bitcoin fake bitcoin bitcoin котировка bitcoin slots bitcoin clock суть bitcoin dag ethereum bitcoin динамика space bitcoin bitcoin motherboard
ethereum кошельки bitcoin indonesia monero hardware multiplier bitcoin bitcoin торговля monero spelunker blue bitcoin monero майнеры bitcoin js bitcoin eth cryptocurrency rates galaxy bitcoin bitcoin 30 bitcoin kran monero вывод
купить bitcoin биржа monero daemon bitcoin bitcoin mmgp ethereum rub проект bitcoin
monero xmr bitcoin количество daily bitcoin ethereum alliance 2018 bitcoin майн ethereum cryptocurrency это
decred ethereum bitcoin like bitcoin экспресс краны ethereum de bitcoin bitcoin платформа bitcoin сайты ethereum продать coinbase ethereum вход bitcoin лотерея bitcoin bitcoin chains новости ethereum bitcoin пулы bitcoin сигналы bip bitcoin bitcoin alliance torrent bitcoin иконка bitcoin bitcoin s coinmarketcap bitcoin ethereum forum flex bitcoin bitcoin background monero gpu bitcoin пополнить konvert bitcoin bitcoin config bitcoin рухнул space bitcoin ethereum pow bitcoin co криптовалюты ethereum purse bitcoin reklama bitcoin r bitcoin bitcoin алгоритм bitcoin monkey Discretionary/nondiscretionary monetary policybitcoin шахты Other participants in the Bitcoin market can buy or sell tokens through cryptocurrency exchanges or peer-to-peer.фри bitcoin icons bitcoin бесплатно ethereum bitcoin bloomberg
electrum bitcoin bitcoin монеты ann monero rx470 monero market bitcoin cran bitcoin калькулятор bitcoin ethereum обменять dao ethereum decred cryptocurrency tether usb bazar bitcoin bitcoin blog bitcoin халява ethereum 1070 автосборщик bitcoin
auto bitcoin coffee bitcoin buy bitcoin casper ethereum
bitcoin страна bitcoin шахты будущее ethereum bitcoin cc secp256k1 bitcoin antminer bitcoin
bitcoin hardfork reddit bitcoin In October 2013, the FBI seized roughly 26,000 BTC from website Silk Road during the arrest of alleged owner Ross William Ulbricht. Two companies, Robocoin and Bitcoiniacs launched the world's first bitcoin ATM on 29 October 2013 in Vancouver, BC, Canada, allowing clients to sell or purchase bitcoin currency at a downtown coffee shop. Chinese internet giant Baidu had allowed clients of website security services to pay with bitcoins.продам ethereum ethereum кошелька
карты bitcoin FACEBOOKbitcoin wm курс ethereum
microsoft bitcoin bitcoin купить новые bitcoin segwit2x bitcoin bitcoin сайты doge bitcoin withdraw bitcoin cranes bitcoin bitcoin ключи криптовалюта tether lucky bitcoin tether программа халява bitcoin monero майнить bitcoin carding ethereum доходность bitcoin roulette roulette bitcoin bitcoin account биржи monero купить ethereum майнеры monero bitcoin это
cronox bitcoin Thus, with smart contracts, developers can build and deploy arbitrarily complex user-facing apps and services: marketplaces, financial instruments, games, etc.bitcoin ваучер iota cryptocurrency биржа ethereum In Blockchain, mining is a process to validate transactions by solving a difficult mathematical puzzle called proof of work. Now, proof of work is the process to determine a number (nonce) along with a cryptographic hash algorithm to produce a hash value lower than a predefined target. The nonce is a random value that is used to vary the value of hash so that the final hash value meets the hash conditions.The twin polarities of zero and infinity are akin to yin and yang — as Charles Seife, author of Zero: Biography of a Dangerous Idea, describes them:So, Bitcoin can be thought of as a rare digital commodity that has unique attributes. Although it has no industrial use, it is scarce, durable, portable, divisible, verifiable, storable, fungible, salable, and recognized across borders, and therefore has the properties of money. Like all 'potential' money, though, it needs sustained demand to have value.