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 bbc Adoption as a World Reserve Currency - Eventually all transactions will be settled on the blockchain, including house titles, stock purchases, car titles, and other monetary instruments and currencies. Network effects one through six culminate in this final network effect. Any newcomer in the realm of cryptocurrency or traditional currency, for that matter; would need to beat Bitcoin in all seven of these areas. This is unlikely considering the pace of development in Bitcoin Core, the level of investment in Bitcoin companies around the world, the growth in Bitcoin's user base, and on and on; Further price increases will only accelerate the process. Finally, a speculative attack could dramatically boost the value of Bitcoin almost overnight.bitcoin easy claymore monero cryptocurrency capitalisation bitcoin nachrichten поиск bitcoin bitcoin биржи
bitcoin конвертер
ethereum краны bitcoin динамика скрипт bitcoin bitcoin coin
ebay bitcoin bitcoin бесплатные token ethereum
ethereum contract bitcoin casino bitcoin io ethereum code So far, our presentation of open allocation governance and hacker culture has presented as an Edenic ideal where everyone works on what they like, without the hassle of a boss. Surely these developers will bump up against one another, creating disagreements. Surely there is accountability. How does a 'leaderless' group actually resolve conflict?сервисы bitcoin работа bitcoin multiplier bitcoin пул bitcoin play bitcoin Barry Silbert’s Bitcoin Investment Trust, which has about 130,000 BTC underbitcoin расчет FACEBOOKвход bitcoin
coinwarz bitcoin bitcoin андроид monero fork ethereum faucet новости monero clame bitcoin приват24 bitcoin bitcoin blue bitcoin курс cryptocurrency bitcoin обмен tether карты bitcoin John and Tom both have iPhone 8’s. When a new software update is released, Tom decides to update his iPhone 8. However, John would rather stay on the older software version and decides not to update his iPhone. This is how a fork works. They still both have an iPhone 8, but both iPhones have different features now.Source: IEEEebay bitcoin bitcoin аналитика
ethereum перспективы ethereum википедия bitcoin комиссия bitcoin motherboard описание bitcoin boxbit bitcoin hourly bitcoin market bitcoin nicehash bitcoin bitcoin server отзывы ethereum ethereum asics zcash bitcoin bitcoin транзакции euro bitcoin bitcoin cc monero hashrate ethereum windows mercado bitcoin trade cryptocurrency monero форк bitcoin jp bitcoin take ethereum course ethereum supernova cryptocurrency top генератор bitcoin cryptocurrency gold
развод bitcoin bitcoin cranes up bitcoin цены bitcoin wallets cryptocurrency
cgminer ethereum tether tools
monero курс
bitcoin анимация
код bitcoin bitcoin payeer карты bitcoin отследить bitcoin bitcoin википедия зарегистрироваться bitcoin bitcoin оборот проекты bitcoin bitcoin source siiz bitcoin reddit bitcoin сбербанк ethereum bitcoin free bitcoin бизнес пулы monero half bitcoin ethereum siacoin bitcoin 2016 bitcoin laundering tether обмен The public collapse of the Mt. Gox bitcoin exchange service was not due to any weakness in the bitcoin system. Rather, the organization collapsed because of mismanagement and the company's unwillingness to invest in appropriate security measures. Mt. Gox had a large bank with no security guards.bitcoin calculator bitcoin окупаемость ethereum miners виталий ethereum
bitcoin ishlash bitcoin 4000 bitcoin rotator Mining Litecoinпродать monero сайте bitcoin майнер monero
takara bitcoin bitcoin trend monero биржи pos bitcoin nanopool monero bitcoin майнить cryptocurrency mining bitcoin anonymous difficulty monero перспективы ethereum bitcoin people ethereum casino bitcoin спекуляция bitcoin prominer bitcoin stock bitcoin 2017
short bitcoin Below, we'll take a closer look at what distinguishes XRP from bitcoin and other top digital tokens.будущее ethereum bitcoin server bitcoin в rpg bitcoin
работа bitcoin github ethereum xronos cryptocurrency ethereum настройка bitcoin rate exchanges bitcoin
ethereum вывод space bitcoin продам bitcoin collector bitcoin ethereum metropolis lite bitcoin
генераторы bitcoin investment bitcoin ethereum pow bitcoin экспресс ethereum serpent bot bitcoin amazon bitcoin the ethereum ecdsa bitcoin
ethereum chart neteller bitcoin bitcoin настройка ethereum настройка bitcoin андроид ethereum перспективы the ethereum pplns monero
ethereum gas ethereum сбербанк
cryptocurrency market протокол bitcoin wmz bitcoin Create new transactions and smart contractsbitcoin arbitrage
But how can these entities keep a consensus about these records? email bitcoin ethereum core bitcoin co rx560 monero
cryptocurrency dash bitcoin nvidia bitcoin видеокарта займ bitcoin fpga bitcoin accepts bitcoin bitcoin ann hosting bitcoin sportsbook bitcoin bitcoin стоимость q bitcoin escrow bitcoin bitcoin wallpaper bitcoin hype email bitcoin ethereum википедия bitcoin russia lazy bitcoin ethereum alliance wechat bitcoin алгоритмы ethereum пирамида bitcoin bitcoin dollar bitcoin исходники bitcoin кранов bitcoin завести tether provisioning bitcoin сбербанк bitcoin magazine bitcoin машина mooning bitcoin сайты bitcoin bitcoin etf unconfirmed bitcoin tether coin bitcoin регистрация 'Privacy is necessary for an open society in the electronic age. Privacy is not secrecy. A private matter is something one doesn’t want the whole world to know, but a secret matter is something one doesn’t want anybody to know. Privacy is the power to selectively reveal oneself to the world.'abc bitcoin habrahabr bitcoin bitcoin favicon exchanges bitcoin raiden ethereum tether ico accepts bitcoin биржи bitcoin
bitcoin блокчейн bitcoin lurk bitcoin bitrix bitcoin mail ethereum биткоин bitcoin s equihash bitcoin 10000 bitcoin ethereum api DATESOne smart developer even produced a mining operating system designed to run on the Raspberry Pi, a low-cost credit card-sized Linux computer designed to consume very small amounts of power. This could be used to power a USB-connected ASIC miner.bitcoin акции ethereum blockchain ethereum erc20 monero proxy bitcoin теханализ bitcoin clouding bitcoin оборудование ethereum клиент займ bitcoin акции ethereum окупаемость bitcoin bitcoin казино
bitcoin weekly настройка monero bitcoin торговать оплатить bitcoin auction bitcoin tradingview bitcoin monero miner будущее bitcoin value bitcoin bitcoin карта bitcoin калькулятор Some of those premises are of course unrealistic, and are simply used to show what happens when there is a growing user-base and constant low-key source of new buyers against a shrinking flow of new coins available.monero купить картинки bitcoin криптовалюту bitcoin rx560 monero frontier ethereum
Bitcoin and open source software development are built upon the same fundamental premise that a copy of the source code is available to users to examine. This concept makes it the responsibility of the community to voice concerns about the software design, just as it is the responsibility of the community to come to consensus about modifications to that underlying source code as well. Because of the open conversation and debate regarding the Bitcoin network, security breaches tend to be highly publicized.заработок ethereum You'd have to get a fast mining rig, or, more realistically, join a mining pool—a group of coin miners who combine their computing power and split the mined bitcoin. Mining pools are comparable to those Powerball clubs whose members buy lottery tickets en masse and agree to share any winnings. A disproportionately large number of blocks are mined by pools rather than by individual miners.bitcoin перспективы bitcoin testnet bitcoin best alpha bitcoin видеокарты ethereum hashrate ethereum bitcoin forums
bitcoin trader super bitcoin
generator bitcoin bitcoin fast eth ethereum bitcoin get bitcoin capitalization обновление ethereum bitcoin автоматически рост bitcoin bitcoin видеокарта zebra bitcoin day bitcoin
mooning bitcoin wallet cryptocurrency баланс bitcoin миллионер bitcoin weather bitcoin bloomberg bitcoin group bitcoin bitcoin tools ico ethereum ltd bitcoin bitcoin котировки trading bitcoin bitcoin primedice ethereum клиент If the thought of maintaining private keys yourself leaves you uneasy, consider a wallet that handles the job for you. Two software wallets currently offer this capability: Electrum and Armory.There are all types of cloud mining options for other forms of blockchain technology.100 bitcoin сложность ethereum пицца bitcoin bitcoin расшифровка adc bitcoin приват24 bitcoin
logo ethereum bitcoin vip exchange cryptocurrency bitcoin center bitcoin school bitcoin trojan ethereum course bitcoin goldman bitcoin bitrix download bitcoin collector bitcoin bitcoin online iota cryptocurrency ethereum рубль bus bitcoin avalon bitcoin bitcoin zone trade bitcoin банк bitcoin bitcoin mail рост ethereum bitcoin google монеты bitcoin bitcoin 1070 tails bitcoin
bitcoin onecoin bitcoin пожертвование addnode bitcoin protocol bitcoin ethereum telegram bitcoin описание exchange bitcoin lootool bitcoin bitcoin millionaire bitcoin приложения bitcoin торги bitcoin торрент китай bitcoin polkadot stingray
locals bitcoin bitcoin стоимость bitcoin today bitcoin multiplier мерчант bitcoin captcha bitcoin hub bitcoin
bitcoin история bittorrent bitcoin генераторы bitcoin
обвал ethereum ethereum miner monero cryptonote bitcoin проверка bitcoin ваучер monero майнить взлом bitcoin сколько bitcoin invest bitcoin conference bitcoin развод bitcoin валюта tether bitcoin generation 6000 bitcoin bitcoin пузырь etf bitcoin индекс bitcoin ethereum frontier
проекта ethereum bitcoin phoenix bitcoin auto адрес ethereum
bitcoin форум bitcoin key korbit bitcoin
nanopool monero bitcoin mt4 цена ethereum ethereum стоимость
nicehash bitcoin bitcoin elena euro bitcoin рубли bitcoin
теханализ bitcoin korbit bitcoin
tabtrader bitcoin bitcoin руб
bitcoin status monero rur сатоши bitcoin bitcoin pay bitcoin алгоритм
usb bitcoin win bitcoin дешевеет bitcoin bitcoin bbc moneypolo bitcoin bot bitcoin electrum bitcoin видео bitcoin bitcoin развод bitcoin work bitcoin nodes
ann ethereum battle bitcoin bitcoin reddit cryptocurrency calendar bitcoin безопасность
яндекс bitcoin bitcoin testnet bitcoin развод bitcoin minecraft 2 bitcoin bitcoin captcha bitcoin png котировка bitcoin average bitcoin
unconfirmed monero bitcoin даром bitcoin lottery faucet ethereum monero logo bitcoin safe bitcoin grant
bitcoin clicks store bitcoin таблица bitcoin cryptocurrency wikipedia bitmakler ethereum bitcoin is bitcoin pay
эфириум ethereum ethereum wallet platinum bitcoin lamborghini bitcoin bitcoin png bitcoin кошелек
криптовалюту bitcoin приложение tether kong bitcoin
bitcoin брокеры bitcoin 99 chaindata ethereum bitcoin oil ethereum алгоритм abi ethereum tether bitcointalk ethereum plasma bitcoin cache обменники bitcoin bitcoin 4000 bitcoin поиск
bitcoin падение ethereum проблемы world bitcoin bitcoin database monero minergate bitcoin перевод
адрес bitcoin pokerstars bitcoin
avalon bitcoin login bitcoin проект bitcoin bitcoin rigs importprivkey bitcoin акции bitcoin electrodynamic tether ethereum wikipedia key bitcoin bitcoin софт takara bitcoin bitcoin сервисы bitcoin pizza q bitcoin balance bitcoin bitcoin значок блокчейн ethereum bitcointalk bitcoin проекта ethereum технология bitcoin скачать bitcoin ethereum txid
multisig bitcoin bitcoin etf moon bitcoin сложность monero
bitcoin завести wikipedia cryptocurrency
bitcoin sportsbook avalon bitcoin mac bitcoin bitcoin land розыгрыш bitcoin In order to 'speak for' an identity, you must know the corresponding secret key. You can create a new identity at any time by generating a new key pair, with no central authority or registry. You do not need to obtain a user name or inform others that you have picked a particular name. This is the notion of decentralized identity management. Bitcoin does not specify how Alice tells Bob what her pseudonym is—that is external to the system.In school, we learn that before we had money, we had a bartering system. Caveman number 1 would trade his fresh mammoth meat for a well-crafted spear from Caveman number 2. Bartering in this way makes intuitive sense, and even as children we engage in it.bitcoin options доходность bitcoin tracker bitcoin кран ethereum money bitcoin bitcoin форекс bitcoin серфинг bitcoin капча solo bitcoin bitcoin pattern bestexchange bitcoin bitcoin вебмани bitcoin china space bitcoin eth ethereum bitcoin accelerator bitcoin lion flypool monero total cryptocurrency lealana bitcoin bitcoin pizza
bitcoin main капитализация ethereum 