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 matrix flappy bitcoin bitcoin multiplier mac bitcoin cranes bitcoin bitcoin captcha se*****256k1 ethereum weekend bitcoin exchange ethereum
майнер monero
tether coinmarketcap bitcoin poker ethereum форум erc20 ethereum
download bitcoin How Do Transactions Happen?boom bitcoin stock bitcoin dog bitcoin bitcoin spin bitcoin cms bitcoin сша bitcoin trinity bitcoin bcn bitcoin реклама робот bitcoin A hot wallet is a tool that allows a cryptocurrency owner to receive and send tokens. Unlike traditional currencies, there are no dedicated banks or physical wallets that can be used to keep cryptocurrency holdings secure. Cryptocurrency wallets are tools that are commonly used to store and protect these holdings, and they come in many different forms and varieties.bitcoin knots autobot bitcoin bitcoin комиссия bitcoin эмиссия bitcoin блог заработок bitcoin buy tether bitcoin продам фото bitcoin purchase bitcoin click bitcoin roboforex bitcoin развод bitcoin putin bitcoin ethereum windows bitcoin change bitcoin etf
delphi bitcoin tor bitcoin capitalization cryptocurrency bitcoin кошелька Ключевое слово bitcoin дешевеет cryptocurrency news вход bitcoin check bitcoin generate bitcoin Externally owned accounts, which are controlled by private keys and have no code associated with them.se*****256k1 bitcoin by bitcoin bitcoin wmx сбербанк ethereum конец bitcoin котировки ethereum
tether yota
keystore ethereum cranes bitcoin ethereum цена bitcoin payoneer David Andolfatto, a vice president at the Federal Reserve Bank of St. Louis, stated, 'Is bitcoin a bubble? Yes, if bubble is defined as a liquidity premium.' According to Andolfatto, the price of bitcoin 'consists purely of a bubble'.:21While any modern GPU can be used to mine, the AMD line of GPU architecture turned out to be far superior to the nVidia architecture for mining bitcoins and the ATI Radeon HD 5870 turned out to be the most cost effective choice at the time.0 bitcoin monero free If you live somewhere with especially cheap electricity then Litecoin mining could definitely be worth it. Electricity costs are one of the main reasons why so much mining happens in China, where there is an abundance of cheap hydropower.bitcoin loan monero calc ethereum фото nodes bitcoin bitcoin bcc master bitcoin bitcoin автосерфинг bitcoin change bitcoin баланс flypool monero fast bitcoin 25. What does the gas usage in a transaction depend on and how is the transaction fee calculated?обсуждение bitcoin nanopool monero ethereum получить
bitcoin traffic bitcoin вложить ethereum game
future bitcoin bot bitcoin txid bitcoin
ethereum claymore сборщик bitcoin
bitcoin coins ethereum mist 4pda bitcoin ethereum investing fx bitcoin
арбитраж bitcoin покупка bitcoin ethereum blockchain bitcoin сервер bitcoin математика курс ethereum nya bitcoin bitcoin script bitcoin xapo 1080 ethereum bitcoin unlimited bitcoin center flash bitcoin китай bitcoin биржи bitcoin bitcoin логотип cryptocurrency charts stock bitcoin trader bitcoin bag bitcoin bitcoin перевести de bitcoin bitcoin ключи gas ethereum
2048 bitcoin bitcoin stealer bitcoin кранов earn bitcoin bitcoin брокеры bitcoin torrent ethereum bitcointalk ethereum dao ethereum перевод loco bitcoin maps bitcoin blocks bitcoin bitcoin x2 ethereum foundation bonus bitcoin сделки bitcoin bitcoin банк pool bitcoin bitcoin blue ethereum explorer майнить monero инструкция bitcoin курс bitcoin ethereum web3 индекс bitcoin cudaminer bitcoin monero hardware ethereum news wifi tether bitcoin unlimited fpga ethereum get bitcoin rus bitcoin
yota tether bitcoin ocean bitcoin china
bitcoin prominer pool bitcoin отзыв bitcoin bitcoin комбайн деньги bitcoin форк bitcoin bitcoin fast greenaddress bitcoin blender bitcoin alpha bitcoin
бизнес bitcoin
биржа monero
bitcoin fees ethereum block bitcoin vizit In 2017, the South Africa Reserve Bank implemented a 'sandbox approach,' testing draft bitcoin and cryptocurrency regulation with a selected handful of startups. In April 2020, the Intergovernmental Fintech Working Group proposed that would increase oversight of crypto activities and mandate business to register with AML watchdog the Financial Intelligence Centre.ethereum fork кран ethereum bitcoin программа
playstation bitcoin bitcoin poloniex сбербанк bitcoin bitcoin xt pizza bitcoin ava bitcoin
программа tether bitcoin mt4 stats ethereum playstation bitcoin bitcoin scrypt bitcoin ads topfan bitcoin яндекс bitcoin lite bitcoin bitcoin путин bitcoin фильм бесплатный bitcoin http bitcoin difficulty monero conference bitcoin iso bitcoin oil bitcoin bitcoin check
monero биржи приват24 bitcoin халява bitcoin bitcoin фильм использование bitcoin bitcoin создать dollar bitcoin trezor bitcoin 6000 bitcoin bitcoin javascript Assassination Market was a Tor-based market operated by a self-described crypto-anarchist going by the pseudonym Kuwabatake Sanjuro.electrodynamic tether криптовалюты bitcoin bitcoin simple mooning bitcoin *****a bitcoin get bitcoin скачать bitcoin bitcoin zebra monero fr reverse tether крах bitcoin bitcoin usd bitcoin баланс bitcoinwisdom ethereum logo ethereum bitcoin traffic exchanges bitcoin monero настройка monero hardware bitcoin x bitcoin конвектор monero fr rpg bitcoin gemini bitcoin to bitcoin
ethereum linux bitcoin баланс bitcoin алгоритмы bitcoin перевод bitcoin количество bitcoin services buy litecoin ltcbitcoin онлайн bitcoin gold safe bitcoin ethereum форум In this section we have distilled the 'common sense' benefits of Bitcoin’s incentive system. We have elucidated how it uses lessons gained from hacker-style software development to create a project which is highly satisfying for software developers to contribute to, and we have established that this satisfaction produces subtle development improvements which ultimately increase the value of the network. In the next section, we explore a variety of ways investors can capture this value.The Investment Outlookbitcoin казахстан korbit bitcoin monero proxy lite bitcoin poloniex bitcoin china cryptocurrency finney ethereum bitcoin spinner компиляция bitcoin покупка bitcoin bitcoin froggy bitcoin eu bitcoin novosti mac bitcoin bitcoin gadget payable ethereum bitcoin options ethereum статистика tether верификация se*****256k1 ethereum tether 4pda
настройка monero сделки bitcoin
bitcoin бот
сколько bitcoin etf bitcoin Accounting and auditingRipple planned to release a maximum of 1 billion XRP tokens each month as governed by an in-built smart contract; the current circulation is over 50 billion.13 16 Any unused portion of the XRP in a particular month will be shifted back to an escrow account.16скачать bitcoin moto bitcoin rx470 monero покер bitcoin bitcoin картинки ethereum buy bitcoin бесплатно сложность monero bitcoin transactions bitcoin wm demo bitcoin bitcoin зебра сайт ethereum bestexchange bitcoin bitcoin бесплатный finex bitcoin
bitcoin legal bonus bitcoin кошелька bitcoin ethereum вики bitcoin цена boxbit bitcoin debian bitcoin local bitcoin monero алгоритм система bitcoin ethereum bonus bitcoin заработок email bitcoin заработать bitcoin bitcoin free сложность monero cubits bitcoin ethereum contracts Popular types of tokenfake bitcoin eobot bitcoin
bitcoin cny lite bitcoin Since Bitcoin is a digital bearer instrument, the receiver of a payment does not get any information from the sender that can be used to steal money from the sender in the future, either by that merchant or by a criminal who steals that information from the merchant.fun bitcoin bitcoin принцип
bitcoin приложение habrahabr bitcoin bitcoin hardfork bitcoin кранов bitcoin pizza By Learning - Coinbase Holiday DealFaster to transferbitcoin портал ethereum dark блог bitcoin monero hardware keystore ethereum bitcoin расшифровка bitcoin london monero сложность bitcoin two bitcoin bitcoin настройка шрифт bitcoin ethereum платформа bitcoin etherium bitcoin s dogecoin bitcoin polkadot su kurs bitcoin cryptocurrency calendar
bitcoin greenaddress mikrotik bitcoin tether ico bitcoin genesis партнерка bitcoin bitcoin generator monero benchmark зебра bitcoin 2016 bitcoin
sberbank bitcoin
bitcoin green monero asic bitcoin plugin ethereum курсы carding bitcoin фарм bitcoin
bitcoin обменники bittrex bitcoin обмена bitcoin p2pool ethereum bitcoin freebie ethereum erc20 monero pro 8 bitcoin
bitcoin paw bitcoin core bitcoin rub ethereum faucet
youtube bitcoin ethereum акции plasma ethereum tor bitcoin bitcoin friday bitcoin расшифровка alpari bitcoin видеокарты bitcoin получение bitcoin
рынок bitcoin rx580 monero видеокарты bitcoin monero address bitcoin kran apk tether zcash bitcoin bitcoin nvidia платформу ethereum bitcoin mt4 перевод bitcoin gift bitcoin bitcoin nvidia продать ethereum ethereum news monero ann bitcoin minergate инструкция bitcoin bitcoin weekly token bitcoin key consists of a public and private key, akin to a bank account number and a secret pin code.sberbank bitcoin boom bitcoin tether app заработка bitcoin bitcoin farm prune bitcoin bitcoin бесплатно decred ethereum bitcoin express рост bitcoin bitcoin мошенники bitcoin вложить
bitcoin information bitcoin agario cryptocurrency law
bitcoin рбк ethereum erc20 tp tether ad bitcoin дешевеет bitcoin bitcoin formula развод bitcoin перспективы ethereum рубли bitcoin bitcoin agario хардфорк ethereum бутерин ethereum ethereum developer
bitcoin bear комиссия bitcoin сайт ethereum bitcoin stiller bitcoin приложения bitcoin развод bitcoin map депозит bitcoin bitcoin проект ethereum mining etoro bitcoin
bitcoin таблица mining ethereum buying bitcoin bitcoin биткоин ubuntu bitcoin miner monero bitcoin сети Merkel Tree is a data structure that is used for verifying a block. It is in the form of a binary tree containing cryptographic hashes of each block. A Merkle tree is structured similarly to a binary tree where each leaf node is a hash of a block of transactional data and each non-leaf node is a hash of its leaf node. The Merkel root or hash root is the final hash root of all the transaction hashes. It encompasses all the transactions that are underlying all the non-leaf nodes.bitcoin drip tether пополнить bitcoin играть bitcoin china Built-in exchange*****p ethereum Thus, you can’t be certain of which address sent funds to another address.cryptocurrency nem bitcoin airbit ropsten ethereum
bitcoin ротатор новости bitcoin
buy tether
withdraw bitcoin
windows bitcoin bitcoin changer bitcoin деньги bitcoin добыть bitcoin fund mining ethereum сеть ethereum протокол bitcoin word bitcoin ethereum script cryptocurrency wallet bitcoin london space bitcoin bitcoin calculator карты bitcoin компьютер bitcoin carding bitcoin карты bitcoin accept bitcoin обмен monero
зарегистрироваться bitcoin mine ethereum bitcoin аккаунт cryptocurrency dash робот bitcoin js bitcoin bitcoin ishlash future bitcoin monero fr
mining ethereum ethereum продать python bitcoin bitcoin роботы monero майнеры ethereum контракты bitcoin conf china bitcoin
explorer ethereum invest bitcoin bitcoin продажа bitcoin fake anomayzer bitcoin bitcoin регистрации bitcoin s monero hashrate депозит bitcoin bitcoin click bitcoin sberbank Operating this computer hardware incurs an expense, first in the form of the hardware, and then in the form of electricity consumed by the hardware. Thus, miners must be confident that their cryptocurrency rewards will be valuable in the future before they will be willing to risk the capital to mine them. This confidence is typically rooted in the abilities and ideas of the core developers who build the software protocols the miners will follow. As time goes on however, the miners recoup their expenses and make a profit, and may lose interest in a given network.As deflationary forces may apply, economic factors such as hoarding are offset by human factors that may lessen the chances that a Deflationary spiral will occur.bitcoin node bitcoin zona case bitcoin ethereum токены 10000 bitcoin dwarfpool monero
ethereum pow exchange bitcoin mining bitcoin bitcoin monkey теханализ bitcoin ethereum habrahabr frontier ethereum пул monero bitcoin hash Where to get ETHcoin ethereum monero news reverse tether oil bitcoin seed bitcoin
почему bitcoin xbt bitcoin
bitcoin security bitcoin hype cryptocurrency calculator tether iphone 4pda tether proxy bitcoin bitcoin sha256 mining ethereum bitcoin poker cms bitcoin hit bitcoin wikileaks bitcoin bitcoin комментарии bitcoin лохотрон bitcoin компьютер криптовалюта tether
bitcoin 0 world bitcoin
bitcoin обвал логотип ethereum bitcoin prominer Storing bitcoinsbitcoin tools Bitcoin has a number of great characteristics that makes it unique from the usual government-back currencies.обои bitcoin
bitcoin telegram bitcoin япония love bitcoin вики bitcoin kaspersky bitcoin баланс bitcoin bitcoin server cryptocurrency wallet баланс bitcoin отследить bitcoin poloniex ethereum bitcoin блок bitcoin деньги abc bitcoin курс bitcoin магазин bitcoin bitcoin картинка bitcoin монета flex bitcoin курс bitcoin neo bitcoin
bitcoin значок monero форум bitcoin two
hosting bitcoin 50 bitcoin bitcoin prices bitcoin серфинг пул bitcoin bitcoin инструкция bitcoin calculator проекты bitcoin bitcoin avalon tether coin cryptocurrency calendar
bitcoin lion nanopool ethereum electrum bitcoin bitcoin webmoney ethereum faucet хардфорк ethereum bitcoin payoneer
трейдинг bitcoin bitcoin play ethereum настройка bitcoin получение monero майнер airbitclub bitcoin wisdom bitcoin bitcoin хайпы big bitcoin бесплатный bitcoin робот bitcoin doge bitcoin transaction bitcoin
freeman bitcoin ethereum code future bitcoin armory bitcoin bitcoin markets bitcoin mmgp
bitcoin euro cryptocurrency bitcoin slots bus bitcoin escrow bitcoin скачать bitcoin зарегистрироваться bitcoin bitcoin мастернода
форк bitcoin ethereum eth genesis bitcoin dark bitcoin криптовалюта tether bitcoin ваучер автосборщик bitcoin air bitcoin bitcoin блок bitcoin checker разделение ethereum
golden bitcoin bitcoin landing bitcoin openssl monero transaction tether курс decred ethereum
tether валюта bitcoin заработок рынок bitcoin hosting bitcoin bitcoin надежность cryptocurrency market ethereum сбербанк instaforex bitcoin сложность ethereum запуск bitcoin hashrate bitcoin
monero xmr bitcoin таблица баланс bitcoin investment bitcoin boom bitcoin java bitcoin блокчейн ethereum калькулятор bitcoin ethereum api
зарабатывать ethereum bitcoin тинькофф monero прогноз ecdsa bitcoin trade cryptocurrency
ethereum chart криптовалюта monero community bitcoin The Litecoin Network aims to process a block every 2.5 minutes, rather than Bitcoin's 10 minutes. This allows Litecoin to confirm transactions much faster than Bitcoin.bitcoin talk bitcoin journal fx bitcoin cryptocurrency calendar bitcoin genesis bestexchange bitcoin buy tether As bitcoin is ineligible to be included in any tax-advantaged retirement accounts, there are no good, legal options to shield investments from taxation.bitcoin traffic by bitcoin 