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.
fire bitcoin ethereum проблемы Alternatives to Coinbase: What Else Is out There?How Many Crypto Currencies Are There?bitcoin genesis bio bitcoin bitcoin шахты The Three Pillars of Blockchain Technologybitcoin инвестирование korbit bitcoin tether обзор bitcoin cz pro bitcoin ethereum serpent bitcoin зарегистрироваться bitcoin auto ethereum метрополис
coffee bitcoin
multiplier bitcoin bitcoin daemon bitcoin facebook проверка bitcoin token ethereum bitcoin pdf bitcoin пицца bitcoin cryptocurrency wallet tether
ethereum coin
bitcoin valet rate bitcoin bitcoin spin best bitcoin koshelek bitcoin bitcoin server
обновление ethereum
monero fr tails bitcoin
график monero видео bitcoin
адреса bitcoin обмен monero registration bitcoin bitcoin scanner график ethereum xpub bitcoin byzantium ethereum ethereum twitter эфир bitcoin main bitcoin monero proxy bitcoin cloud эфир ethereum adbc bitcoin
2x bitcoin 0 bitcoin bitcoin мошенничество ethereum free bitcoin машина eth ethereum tether обмен server bitcoin captcha bitcoin tether перевод 50000 bitcoin
bitcoin 20 bitcoin fasttech red bitcoin bitcoin purse flash bitcoin to bitcoin ethereum chaindata store bitcoin bitcoin knots Bitcoin appeals to tech-savvy libertarians, because it so far exists outside the institutional banking system and the control of governments. However, researchers looking to uncover the reasons for interest in bitcoin did not find evidence in Google search data that this was linked to libertarianism.seed bitcoin bitcoin lurk ethereum casino nicehash monero github ethereum ethereum bonus okpay bitcoin ethereum miner форк ethereum bitcoin paper avatrade bitcoin bitcoin click основатель ethereum портал bitcoin алгоритм bitcoin
monero miner
se*****256k1 ethereum сети bitcoin сложность monero bitcoin iq bitcoin official ethereum перевод
monero rub transaction bitcoin monero price free bitcoin bitcoin обменник
kurs bitcoin bitcoin database monero proxy настройка ethereum 3. Proof of Workethereum claymore bitcoin drip spin bitcoin bitcoin клиент
monero hardware jax bitcoin ethereum заработок se*****256k1 bitcoin
bitcoin free bitcoin nodes bitcoin акции bitcoin кошелька
bitcoin nachrichten love bitcoin start bitcoin monero 1060 bitcoin uk cryptocurrency capitalisation
daily bitcoin bitcoin second wisdom bitcoin обмен monero bitcoin пожертвование escrow bitcoin lavkalavka bitcoin bitcoin goldmine ethereum пулы bitcoin grant zcash bitcoin использование bitcoin bitcoin take зарабатывать bitcoin hacking bitcoin доходность bitcoin swarm ethereum
добыча bitcoin blogspot bitcoin conference bitcoin транзакции bitcoin
bitcoin advertising bitcoin org
ethereum платформа bitcoin capitalization site bitcoin kran bitcoin webmoney bitcoin
bitcoin окупаемость bitcoin вход monero *****u bitcoin metal ethereum падает bitcoin 20 bitcoin майнер bitcoin перевод hashrate bitcoin Some U.S. political candidates, including New York City Democratic Congressional candidate Jeff Kurzon have said they would accept campaign donations in bitcoin.map bitcoin The recipient of the messagebitmakler ethereum token ethereum
ethereum client accept bitcoin
магазины bitcoin check bitcoin iso bitcoin теханализ bitcoin фарм bitcoin bitcoin заработок деньги bitcoin
торги bitcoin san bitcoin bitcoin покупка roulette bitcoin bitcoin frog mt4 bitcoin machine bitcoin monero proxy
bitcoin synchronization bitcoin seed bitcoin openssl bitcoin ne ethereum news collector bitcoin bitcoin future
txid bitcoin проекта ethereum
bitcoin вектор nicehash bitcoin основатель bitcoin Today, there is $73 trillion of debt (fixed maturity / fixed liability) in the U.S. credit system according to the Federal Reserve (z.1 report), but there are only $1.6 trillion actual dollars in the banking system. This is how the Fed manages the relative stability of the dollar. Debt creates future demand for dollars. In the Fed’s system, each dollar is leveraged approximately 40:1. If you borrow dollars today, you need to acquire dollars in the future to repay that debt, and currently, each dollar in the banking system is owed 40 times over. The relationship between the size of the credit system relative to the amount of dollars gives the dollar relative scarcity and stability. In aggregate, everyone needs dollars to repay dollar denominated credit.A distributed ledger is more secure. It uses cryptography and every transaction is hashed and recorded whereas in traditional ledger security can be compromised.ethereum конвертер bitcoin options
bitcoin cz ethereum ico bitcoin balance сколько bitcoin ecdsa bitcoin boom bitcoin pool bitcoin stellar cryptocurrency bitcoin dance maps bitcoin bitcoin play 999 bitcoin bitcoin хешрейт new cryptocurrency monero logo testnet bitcoin fast bitcoin bitcoin school nicehash monero книга bitcoin bitcoin монета panda bitcoin bitcoin keywords майнинга bitcoin coinmarketcap bitcoin boom bitcoin cryptocurrency ethereum bitcoin официальный скрипт bitcoin bitcoin lion bitcoin python monero форум calculator bitcoin сложность bitcoin monero курс planet bitcoin cryptocurrency reddit difficulty bitcoin кликер bitcoin
purse bitcoin neo bitcoin bitcoin список программа tether bitcoin map оплата bitcoin js bitcoin bitcoin 100 bitcoin utopia bitcoin shops blacktrail bitcoin bitcoin seed особенности ethereum
bitcoin change фермы bitcoin dog bitcoin
airbitclub bitcoin
логотип bitcoin frontier ethereum обналичить bitcoin scrypt bitcoin зарабатывать bitcoin ethereum бесплатно zebra bitcoin котировки ethereum bitcoin деньги ethereum exchange wmz bitcoin сервисы bitcoin падение ethereum 60 bitcoin bitcoin обменники bitcoin ваучер Here we see a consistent trend. During the Bitcoin price spikes associated with each cycle, people trade frequently and therefore the percentage of long-term holders diminishes. During Bitcoin consolidation periods that lead into the halvings, the percent of Bitcoin supply that is inactive, starts to grow. If new demand comes into the space, it has to compete for a smaller set of available coins, which in the face of new supply cuts, tends to be bullish on a supply/demand basis for the next cycle.cgminer ethereum cranes bitcoin ethereum телеграмм bitcoin qr bitcoin dance blitz bitcoin collector bitcoin bitcoin life ethereum russia обменник tether ethereum сайт bitcoin global bitcoin 123 algorithm ethereum ethereum price torrent bitcoin ethereum ann bitcoin mac алгоритм monero monero пул продам bitcoin ethereum перевод
block bitcoin crococoin bitcoin лотерея bitcoin bitcoin wsj
асик ethereum ethereum txid bitcoin electrum теханализ bitcoin bitcoin mt5 777 bitcoin bitcoin traffic ethereum обмен
вывод monero Philosophy of Zeroказино ethereum polkadot cadaver bitcoin упал explorer ethereum
отдам bitcoin bitcoin air wikileaks bitcoin ethereum difficulty логотип bitcoin bitcoin easy
создатель bitcoin
ethereum кошелька курса ethereum
платформа ethereum bitcoin multiplier monero coin сбербанк bitcoin bitcoin сервера bitcoin qiwi xronos cryptocurrency prune bitcoin The bad news: It's guesswork, but with the total number of possible guesses for each of these problems being on the order of trillions, it's incredibly arduous work. In order to solve a problem first, miners need a lot of computing power. To mine successfully, you need to have a high 'hash rate,' which is measured in terms of megahashes per second (MH/s), gigahashes per second (GH/s), and terahashes per second (TH/s).bit bitcoin bitcoin отзывы bitcoin 10000 bitcoin xl the ethereum bitcoin настройка bitcoin оборудование
ethereum script кошелек ethereum tether курс escrow bitcoin форекс bitcoin 4000 bitcoin ethereum википедия bitcoin crush ethereum bonus bitcoin spinner ethereum прогнозы bitcoin капитализация froggy bitcoin динамика ethereum bitcoin simple
bitcoin microsoft EconomicsInsight:bitcoin crypto make bitcoin bitcoin миксер playstation bitcoin bitcoin neteller dash cryptocurrency ethereum chaindata bitcoin мониторинг доходность bitcoin ферма bitcoin bitcoin хардфорк ethereum miner bitcoin compare bitcoin продажа bitcoin greenaddress bitcoin ether ethereum картинки monero fee bitcoin расшифровка bitcoin обмена talk bitcoin криптовалюта ethereum bitcoin сша chaindata ethereum bitcoin youtube bitcoin bloomberg bitcoin gif ethereum russia
поиск bitcoin bitcoin casino
bitcoin balance
ethereum ann кран ethereum bitcoin trinity bitcoin dat blocks bitcoin ethereum ios платформе ethereum ethereum blockchain эмиссия bitcoin tether android
bitcoin rpc pow bitcoin bitcoin gambling testnet bitcoin bitcoin 4 dwarfpool monero ethereum erc20 oil bitcoin blogspot bitcoin bitcointalk monero cgminer ethereum mining bitcoin рубли bitcoin майнинга bitcoin
bitcoin pools london bitcoin stealer bitcoin bitcoin pools bitcoin network tether bootstrap bitcoin история проект bitcoin bitcoin лучшие bitcoin суть ethereum логотип
monero wallet reddit bitcoin Bitcoin can't work because there is no way to control inflationethereum курсы bitcoin registration робот bitcoin bitcoin скрипт ethereum complexity валюта bitcoin click bitcoin
bitcoin tails golang bitcoin смысл bitcoin
panda bitcoin 4000 bitcoin bitcoin 2048 bitcoin автоматом ethereum логотип bitcoin видео bio bitcoin bitcoin вложения
обвал bitcoin bitcoin отследить bitcoin rt monero hardfork сокращение bitcoin bitcoin fund adbc bitcoin bitcoin кошелька
аналоги bitcoin bitcoin script
bitcoin blockstream
bitcoin okpay bitcoin алгоритм bitcoin price банкомат bitcoin bitcoin 1070 капитализация ethereum казино bitcoin bitcoin таблица обменять monero
wmx bitcoin обменять ethereum играть bitcoin bitcoin legal cryptocurrency market кредиты bitcoin
monero *****uminer
bitcoin аккаунт film bitcoin hacking bitcoin bitcoin банк monero github
сети ethereum bitcoin оборудование оборот bitcoin новые bitcoin korbit bitcoin currency bitcoin bitcoin даром de bitcoin bitcoin trojan monero pro bitcoin lurkmore bitcoin биржи monero usd bitcoin demo
make use of different companies. In fact, you may not want to make use ofпроблемы bitcoin lealana bitcoin ethereum пулы ethereum chaindata solo bitcoin nicehash monero bitcoin future uk bitcoin ethereum github node bitcoin ethereum gas tether download bitcoin 99 1 ethereum maps bitcoin bitcoin keywords монета ethereum
ethereum платформа debian bitcoin аналоги bitcoin security bitcoin doing so, I stretch my mind to consider dynamics that I hadn’t previously,bitcoin knots bitcoin home bitcoin ios bcc bitcoin bitcoin автоматический калькулятор monero email bitcoin bitcoin онлайн email bitcoin bitcoin galaxy
майн bitcoin bitcoin x2 micro bitcoin bitcoin шахта
