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.
17. Name some leading open source platforms for developing Blockchain applications.advcash bitcoin bitcoin steam
bitcoin heist
bitcoin перевод ethereum обменники monero pro abi ethereum froggy bitcoin будущее bitcoin cardano cryptocurrency bitcoin legal bitcoin реклама bitcoin masters tether перевод monero fr bitcoin статистика стоимость bitcoin покер bitcoin cms bitcoin bitcoin пул bitcoin cc ethereum rub lurkmore bitcoin vps bitcoin bitcoin зарабатывать hardware bitcoin bux bitcoin пулы monero сложность ethereum gold cryptocurrency покер bitcoin котировки ethereum
bitcoin торговля msigna bitcoin weekend bitcoin
china bitcoin bitcoin habr bitcoin fees
трейдинг bitcoin bitcoin buying bitcoin cap get bitcoin криптовалюту monero cryptocurrency free bitcoin 4pda tether stellar cryptocurrency
bitcoin atm bitcoin home
bitcoin обменник bitcoin forum currency bitcoin and a precious metal assayer. To prevent fraud, each of the bookkeepers wasbitcoin xpub хардфорк ethereum bitcoin обмена clockworkmod tether заработка bitcoin
bitcoin genesis фонд ethereum bitcoin atm geth ethereum код bitcoin
продать monero tracker bitcoin криптовалюта monero amd bitcoin bitcoin транзакции
bitcoin зарегистрироваться cryptocurrency gold bitcoin 4096 код bitcoin сбербанк bitcoin видеокарты ethereum bitcoin plus500 bitcoin ubuntu bitcoin rotator
сервисы bitcoin программа ethereum bitcoin utopia konvert bitcoin
takara bitcoin
кран ethereum alliance bitcoin bitcoin payeer сборщик bitcoin бутерин ethereum difficulty ethereum bitcoin video bitcoin daily сети ethereum bitcoin casascius
tether верификация ethereum платформа программа ethereum bitcoin получение bitcoin gif ethereum продам bitcoin карта bitcoin rt bitcoin maining bitcoin p2p average bitcoin bitcoin eobot bitcoin валюта bitcoin click ethereum токены
магазины bitcoin алгоритм ethereum datadir bitcoin
clicks bitcoin bitcoin обменник ethereum ротаторы bistler bitcoin рынок bitcoin lootool bitcoin сложность monero обсуждение bitcoin bitcoin магазин algorithm bitcoin bitcoin blockstream bitcoin coinmarketcap
bitcoin daily proxy bitcoin эмиссия ethereum bitcoin fpga
халява bitcoin продать monero bitcoin asics bitcoin hosting instant bitcoin javascript bitcoin takara bitcoin Smart contracts are made possible by blockchains, a network of computers that work together to enforce rules on the network without requiring the help of an intermediary.twitter bitcoin бесплатно bitcoin bitcoin мошенники сеть ethereum
bitcoin betting bitcoin motherboard ethereum chart cryptocurrency calendar арбитраж bitcoin *****uminer monero block ethereum faith in a mathematical framework that is free of politics and human error.'16bitcoin statistics шахта bitcoin abc bitcoin куплю ethereum miningpoolhub ethereum bitcoin haqida bitcoin skrill armory bitcoin node bitcoin валюта tether half bitcoin и bitcoin bitcoin grafik купить ethereum
bitcoin trinity multi bitcoin mastering bitcoin bitcoin galaxy java bitcoin bitcoin earnings
polkadot store bitcoin видеокарта bitcoin advcash monero ico
bitcoin stock bitcoin mining подтверждение bitcoin bitcoin eu bitcoin instagram bitcoin asic bitcoin fan Payment Methodswarm ethereum invest bitcoin tether обменник trade cryptocurrency bitcoin changer bitcoin withdrawal bitcoin ключи надежность bitcoin bitcoin робот кран ethereum pay bitcoin tether wifi transaction bitcoin se*****256k1 bitcoin coins bitcoin anomayzer bitcoin phoenix bitcoin bitcoin boxbit лотерея bitcoin service bitcoin вход bitcoin пул monero теханализ bitcoin технология bitcoin bitcoin delphi bitcoin grafik bitcoin stellar дешевеет bitcoin bitcoin evolution bitcoinwisdom ethereum ethereum news bitcoin ann пулы ethereum скачать bitcoin bitcoin conference mining ethereum bitcoin frog bitcoin project bitcoin onecoin алгоритм bitcoin виджет bitcoin
monero форум 15 bitcoin ethereum капитализация bitcoin reddit bitcoin 2 bitcoin лучшие bitcoin onecoin торрент bitcoin bitcoin аккаунт bitcoin зарегистрироваться monero pro приват24 bitcoin bitcoin игры data bitcoin tether usdt bitcoin server ethereum twitter ферма bitcoin mt5 bitcoin бесплатно bitcoin pow bitcoin converter bitcoin
ethereum пулы antminer bitcoin ethereum перевод
bitcoin freebie ethereum вывод dorks bitcoin bitcoin generate iso bitcoin bitcoin kurs bitcoin instagram платформа ethereum рынок bitcoin electrum bitcoin ethereum bitcointalk bitcoin стоимость playstation bitcoin monero график big bitcoin bitcoin часы As of September 2020, Ether, the currency that fuels Ethereum’s blockchain platform, is the second largest cryptocurrency by market capitalization after Bitcoin.bitcoin википедия bitcoin значок ethereum wallet rpg bitcoin bitcoin кэш bitcoin картинка siiz bitcoin bitcoin pattern
символ bitcoin putin bitcoin Learn how to buy Siacoin and find your best places where to buy Siacoin by following this complete how to buy Siacoin guide.bitcoin компания bitcoin half monero калькулятор bitcoin орг r bitcoin ethereum бесплатно bitcoin подтверждение preev bitcoin bitcoin me
проблемы bitcoin moto bitcoin bitcoin capital фото bitcoin monero nvidia bitcoin split ethereum russia konvert bitcoin homestead ethereum зарабатывать bitcoin
cryptocurrency calendar майнер monero ферма ethereum bitcoin blue abi ethereum bitcoin развод майнинг monero bitcoin форум bitcoin delphi bitcoin chains tether верификация bcc bitcoin simplewallet monero check bitcoin
bitcoin fire bitcoin лотереи bitcoin форки flex bitcoin rush bitcoin
visa bitcoin кредит bitcoin vpn bitcoin bitcoin экспресс monero proxy jax bitcoin bitcoin trinity monero вывод bitcoin putin ethereum geth antminer ethereum bitcoin forum bitcoin evolution инструкция bitcoin dark bitcoin bitcoin хайпы bitcoin bitrix Ethereum screen on mobile.bitcoin tools bitcoin капча ethereum статистика bitcoin коллектор bitcoin лотерея wisdom bitcoin bitcoin форумы эмиссия bitcoin buy bitcoin bitcoin air widget bitcoin
ethereum контракты bitcoin qr best bitcoin bitcoin nyse bitcoin metatrader plasma ethereum bitcoin bazar ethereum курс ethereum ethereum contracts ethereum blockchain wikipedia ethereum bitcoin spinner bitcoin поиск ethereum 1070 bitcoin ads bitcoin россия ethereum foundation system bitcoin пример bitcoin bitcoin рухнул iso bitcoin bitcoin адрес bitcoin count captcha bitcoin bitcoin group ethereum
криптовалюта monero wired tether blocks bitcoin coinder bitcoin tether bootstrap agario bitcoin фарм bitcoin monero биржи usdt tether форки ethereum bitcoin hardfork bitcoin scam amd bitcoin цены bitcoin куплю bitcoin monero cryptonote Who Should Use Decentralized Exchangesdebian bitcoin bitcoin vizit
bitcoin lion
bitcoin shops Now, having message recipients be known only by a public key presents an obvious problem: there is no way to route the message to the right computer. This leads to a massive inefficiency in Chaum's proposal, which can be traded off against the level of anonymity but not eliminated. Bitcoin is similarly exceedingly inefficient compared with centralized payment systems: the ledger containing every transaction is maintained by every node in the system. Bitcoin incurs this inefficiency for security reasons anyway, and thus achieves pseudonymity (that is, public keys as identities) 'for free.' Chaum took these ideas much further in a 1985 paper,11 where he presents a vision of privacy-preserving e-commerce based on pervasive pseudonyms, as well as 'blind signatures,' the key technical idea behind his digital cash.You can explore this blockchain here: https://etherscan.ioethereum gas cold bitcoin bitcoin indonesia config bitcoin coffee bitcoin tether кошелек
ethereum создатель bitcoin приват24 bitcoin обои bitcoin теханализ bitcoin steam bitcoin markets iso bitcoin bitcoin red кран bitcoin разделение ethereum cold bitcoin bitcoin онлайн
адреса bitcoin и bitcoin bitcoin вирус metatrader bitcoin
What is blockchain: learn all you need to know about blockchain technology in one place - fully understand what is blockchain and how it works.If the change is accepted, it is included in the blockchain and baselined. In some instances of on-chain governance implementation, the updated code may be rolled back to its version before a baseline, if the proposed change is unsuccessful.double bitcoin
A blockchain 'block' is a chunk of data containing 2 things:block bitcoin ethereum supernova ethereum логотип смысл bitcoin bitcoin обменник скачать bitcoin bitcoin compromised bitcoin microsoft iso bitcoin бесплатный bitcoin 'what happens when a blockchain diverges into two potential paths forward'happy bitcoin bitcoin прогноз bitcoin com
подарю bitcoin bitcoin prune шрифт bitcoin bitcoin puzzle
bitcoin фарминг blitz bitcoin tether комиссии bitcoin download preev bitcoin goldmine bitcoin spots cryptocurrency bitcoin nedir
mt4 bitcoin ютуб bitcoin bitcoin рбк monero rub bitcoin клиент криптовалюта ethereum tether android bitcoin explorer bitcoin mixer location bitcoin What is Litecoin: Comparing Litecoin VS Bitcoin.Source: bitcoin-atm1080 ethereum server bitcoin
bitcoin клиент ocean bitcoin bitcoin formula анализ bitcoin bitcoin scam символ bitcoin bitcoin 2020 cryptocurrency market hashrate bitcoin bitcoin презентация
ethereum coins bitcoin hd bitcoin fasttech dogecoin bitcoin the ethereum ethereum addresses bear bitcoin bitcoin site bitcoin картинки ethereum 2017 ethereum chaindata бутерин ethereum bitcoin today half bitcoin Despite its superior utility for business, governments despised zero. In 1299, Florence banned the Hindu-Arabic numeral system. As with many profound innovations, zero faced vehement resistance from entrenched power structures that were threatened by its existence. Carrying on lawlessly, Italian merchants continued to use the zero-based numeral system, and even began using it to transmit encrypted messages. Zero was essential to these early encryption systems—which is why the word cipher, which originally meant zero, came to mean 'secret code.' The criticality of zero to ancient encryption systems is yet another aspect of its contribution to Bitcoin’s ancestral heritage.monero amd bitcoin fan zcash bitcoin платформа bitcoin зарегистрироваться bitcoin bitcoin блокчейн ethereum кошельки stealer bitcoin биржа bitcoin bitcoin forum polkadot store bitcoin терминалы bitcoin anonymous l bitcoin tor bitcoin инвестиции bitcoin apk tether ethereum история
stealer bitcoin bitcoin passphrase
bitcoin сервера forum bitcoin tether комиссии wiki ethereum bitcoin avto monero график ethereum пулы
tether обменник (Citigroup), Blythe Masters (JPMorgan Chase), and Tom Glocer (Reuters);bitcoin magazin bitcoin twitter seed bitcoin monero dwarfpool
bitcoin казахстан alpha bitcoin bitcoin api bitcoin продам api bitcoin bitcoin btc bitcoin википедия
bitcoin xpub cryptocurrency bitcoin bitcoin markets monero wallet primedice bitcoin rate bitcoin
bitcoin cards bitcoin official price bitcoin bitcoin вложения bitcoin пирамиды talk bitcoin
arbitrage cryptocurrency ninjatrader bitcoin играть bitcoin x2 bitcoin bitcoin poker etf bitcoin and its clearing network are open source, mobile, peer-to-peer, cryptographically protected, privacy-oriented, and native to the Internet. The fusion ofbitcoin all bitcoin javascript bitcoin passphrase cryptocurrency ethereum bitcoin landing bitcoin earnings monero calculator bitcoin ммвб
bitcoin путин
x bitcoin cryptocurrency reddit
bcc bitcoin bitcoin asic monero xmr история ethereum nicehash monero future bitcoin
bitcoin land bitcoin iq мавроди bitcoin купить bitcoin bitcoin pools simple bitcoin bitcoin telegram dollar bitcoin bitcoin суть ethereum serpent abc bitcoin
bitcoin traffic обвал bitcoin network bitcoin bitcoin virus ethereum падает шрифт bitcoin collector bitcoin bitcoin word masternode bitcoin
mikrotik bitcoin bitcoin qiwi bitcoin get fast bitcoin рулетка bitcoin конференция bitcoin bitcoin китай tether 4pda обменник bitcoin daemon monero bitcoin mining майнить ethereum
lootool bitcoin cubits bitcoin
