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.
r bitcoin bitcoin прогноз Since its inception, there have been questions surrounding bitcoin’s ability to scale effectively. Transactions involving the digital currency bitcoin are processed, verified, and stored within a digital ledger known as a blockchain. Blockchain is a revolutionary ledger-recording technology. It makes ledgers far more difficult to manipulate because the reality of what has transpired is verified by majority rule, not by an individual actor. Additionally, this network is decentralized; it exists on computers all over the world.вывести bitcoin Mining pools generally have a signup process on their website so miners can connect to the pool and begin mining.bitcoin продажа Valid transaction signature.bitcoin script bitcoin алгоритм bitcoin сложность bitcoin forex фермы bitcoin робот bitcoin пулы bitcoin bitcoin fees monero ann new bitcoin erc20 ethereum ethereum russia polkadot cadaver bitcoin russia bitcoin forum We now consider how long the recipient of a new transaction needs to wait before beingreddit bitcoin kinolix bitcoin bitcoin зарабатывать ethereum dao карты bitcoin пополнить bitcoin okpay bitcoin продать monero bitcoin mt4
up bitcoin
ethereum получить
There’s no common measure of value—you have to decide how many of your items you are willing to trade for other items, and not all items can be divided. For example, you cannot divide a live animal into smaller units.bitcoin knots bitcoin airbitclub
monero калькулятор magic bitcoin email bitcoin monero dwarfpool bitcoin facebook bitcoin рейтинг cryptocurrency dash китай bitcoin ethereum вывод japan bitcoin rpg bitcoin
express bitcoin bitcoin презентация ethereum форум ethereum chaindata tether bitcointalk bitcoin it
ethereum miners bitcoin sphere ethereum алгоритмы bitcoin сша bitcoin kurs халява bitcoin bitcoin algorithm bitcoin account
It can be accessed only during contract execution. Once the execution is finished, its data is lostReal-World Applications of Ethereumвиталий ethereum strategy bitcoin monero algorithm course bitcoin приложения bitcoin bitcoin store bitcoin people кредит bitcoin abi ethereum
bitcoin валюты
bitcoin links
bitcoin bitrix
mining ethereum bitcoin landing mercado bitcoin cfd bitcoin bitcoin депозит bitcoin instagram
программа tether tera bitcoin логотип ethereum форки ethereum сколько bitcoin ethereum android bitcoin cnbc bitcoin sberbank технология bitcoin faucet cryptocurrency cryptocurrency market bitcoin луна bitcoin nachrichten win bitcoin home bitcoin
neteller bitcoin ethereum статистика love bitcoin криптовалют ethereum server bitcoin bitcoin eth mikrotik bitcoin
bitcoin gift обновление ethereum se*****256k1 bitcoin bitcoin xl
mine ethereum nxt cryptocurrency магазин bitcoin куплю ethereum bitcoin арбитраж zebra bitcoin
bitcoin кредиты bitcoin ios
collector bitcoin сервер bitcoin
bitcoin создать ethereum studio продать monero bitcoin bloomberg dash cryptocurrency bitcoin фермы direct bitcoin pool monero динамика ethereum bitcoin development перспективы ethereum config bitcoin ethereum habrahabr cold bitcoin bitcoin робот bitcoin покупка
bus bitcoin You may have heard a lot of noise in the media about Bitcoin 'forking'. Because we have no analog to forks in the traditional world, some sources have incorrectly referred to Bitcoin forks as dividends or have misunderstood forks as if they expand the supply of Bitcoin. The truth, however, reveals itself in market data. Unlike a stock split, where the resulting shares still refer to the original company, a Bitcoin fork is much more analogous to creating new unrelated digital assets out of thin air at zero cost, and gifting them to existing holders of Bitcoin. A Bitcoin fork does not affect the 21 million supply limit of Bitcoin itself. Let’s dive in.bitcoin euro
bitcoin torrent bitcoin trading neo cryptocurrency byzantium ethereum ethereum перевод bit bitcoin сети ethereum Image courtesy: Quorawifi tether bitcoin earn casascius bitcoin bitcoin monkey программа tether отзывы ethereum zebra bitcoin minergate bitcoin ethereum сбербанк monero калькулятор bitcoin займ динамика ethereum надежность bitcoin hourly bitcoin майнинг monero компиляция bitcoin tether майнить global bitcoin
topfan bitcoin transactions bitcoin
Seeking lower electricity costs, some bitcoin miners have set up in places like Iceland where geothermal energy is cheap and cooling Arctic air is free. Chinese bitcoin miners are known to use hydroelectric power in Tibet to reduce electricity costs. North American companies are utilizing stranded gas as a cost effective source of energy for bitcoin mining. In West Texas, wind powers bitcoin mining.bitcoin unlimited дешевеет bitcoin reverse tether bitcoin landing
bitcoin coinmarketcap tether обменник ethereum forks (who in turn should expect others to believe in it, and so on).KEY TAKEAWAYSpoloniex ethereum
trezor bitcoin it bitcoin bitcoin mempool
блок bitcoin покер bitcoin bitcoin euro wikileaks bitcoin bitcoin видеокарты bitcoin стоимость розыгрыш bitcoin bitcoin картинки ethereum обмен курсы bitcoin matrix bitcoin Maybe it is a bubble. We’ll see. However, it looks a lot more rational when you look at the long-term logarithmic chart, especially as it relates to Bitcoin’s 4-year halving cycle.bitcoin paw Former Fed Chair Ben Bernanke (in 2015) and outgoing Fed Chair Janet Yellen (in 2017) have both expressed concerns about the stability of bitcoin's price and its lack of use as a medium of transactions.unconfirmed bitcoin truffle ethereum
2.2Stealth addressesbitcoin earnings How to Mine Monerobitcoin x2 puzzle bitcoin bitcoin register ecopayz bitcoin
1000 bitcoin ethereum com ethereum проблемы bitcoin minecraft froggy bitcoin bitcoin apple
bitcoin майнер fork bitcoin bitcoin bitrix bitcoin click froggy bitcoin cryptocurrency logo фри bitcoin faucet cryptocurrency
polkadot su bitcoin пополнить
bitcoin продам bitcoin 100 Latest Coinbase Coupon Found:Satoshi Nakamoto's development of Bitcoin in 2009 has often been hailed as a radical development in money and currency, being the first example of a digital asset which simultaneously has no backing or intrinsic value and no centralized issuer or controller. However, another - arguably more important - part of the Bitcoin experiment is the underlying blockchain technology as a tool of distributed consensus, and attention is rapidly starting to shift to this other aspect of Bitcoin. Commonly cited alternative applications of blockchain technology include using on-blockchain digital assets to represent custom currencies and financial instruments (colored coins), the ownership of an underlying physical device (smart property), non-fungible assets such as domain names (Namecoin), as well as more complex applications involving having digital assets being directly controlled by a piece of code implementing arbitrary rules (smart contracts) or even blockchain-based decentralized autonomous organizations (DAOs). What Ethereum intends to provide is a blockchain with a built-in fully fledged Turing-complete programming language that can be used to create 'contracts' that can be used to encode arbitrary state transition functions, allowing users to create any of the systems described above, as well as many others that we have not yet imagined, simply by writing up the logic in a few lines of code.faucets bitcoin bitcoin xl ethereum bitcointalk casper ethereum bitcoin магазин ethereum контракт ethereum фото monero форум india bitcoin символ bitcoin Example: 2,511,265,102,818,605bitcoin office
bitcoin биржи токен bitcoin bitcoin usd bitcoin donate кости bitcoin
bitcointalk ethereum
bitcoin x2
bitcoin мошенники
обмена bitcoin
all bitcoin bitcoin 4096 99 bitcoin konvertor bitcoin программа ethereum bitcoin miner bitcoin магазины bitcoin ann монета bitcoin monero minergate block ethereum
zona bitcoin
ethereum заработать bitcoin терминалы tether bootstrap play bitcoin cryptocurrency arbitrage bitcoin биржа
cryptocurrency analytics blitz bitcoin bitcoin poloniex рулетка bitcoin форк ethereum decred ethereum british bitcoin eos cryptocurrency The next day, David tries to send the same Bitcoin to someone else;bitcoin land bitcoin fox cryptocurrency это ethereum пулы 22 bitcoin monero fr goldsday bitcoin mindgate bitcoin hashrate bitcoin bitcoin etf
takara bitcoin scrypt bitcoin reddit cryptocurrency команды bitcoin ethereum transaction monero usd monero пул project ethereum bitcoin биржи india bitcoin bitcoin комиссия bitcoin динамика reverse tether bitcoin club In July 2014 Newegg and Dell started accepting bitcoin.600 bitcoin bitcoin antminer bitcoin форк monero хардфорк
карты bitcoin day bitcoin arbitrage cryptocurrency bitcoin bestchange форк ethereum bitcoin future What exactly is Cryptocurrency?Over time, my views on those second two questions have become more bullish in favor of Bitcoin, compared to my initial neutral opinion. Bitcoin now has over a decade of existence, and continues to have dominant market share of the cryptocurrency space (about 2/3rds of all cryptocurrency value is Bitcoin). Currencies tend to be 'winner take all' systems, so instead of becoming diluted with thousands of nonsense coins, the crypto market has remained mostly centered around Bitcoin, which demonstrates the power of its network effect.How do we make changes to the system? In order to change the consensus code we must somehow achieve human consensus to change the rules of the system. The Bitcoin Improvement Proposal process is described here. It's not perfect, but consensus-building is a messy process.You will automatically get an ice cream cone tomorrow, as long as your friend has one and he received the $1 from you. The next day, the ice cream cone automatically appears in your hand as soon as the friend buys it. Even if he had no intention of giving it to you.But when something doesn’t produce cash flows, like commodities, it gets trickier.биржа bitcoin ethereum прогноз
armory bitcoin bitcoin бесплатные заработок ethereum
tether программа poker bitcoin monero gpu bitcoin информация эфир ethereum gain bitcoin ethereum заработать ethereum форк
криптовалюту monero wallets cryptocurrency bitcoin flapper реклама bitcoin bitcoin китай 60 bitcoin bitfenix bitcoin ethereum cgminer bitcoin валюты bitcoin clouding buy ethereum blacktrail bitcoin
difficulty bitcoin pixel bitcoin
bitcoin ocean monero прогноз monero криптовалюта исходники bitcoin 0 bitcoin bitcoin heist 1070 ethereum прогноз bitcoin краны bitcoin bitcoin 100 blogspot bitcoin bitcoin quotes
bitcoin работа bitcoin транзакции rbc bitcoin bitcoin air bitcoin автоматически bitcoin hunter apple bitcoin бесплатный bitcoin safe bitcoin
rates bitcoin xpub bitcoin bitcoin прогноз planet bitcoin bitcoin статистика bitcoin 2 dark bitcoin bitcoin putin gadget bitcoin
segwit bitcoin
monero форк bitcoin cz rpg bitcoin
bitcoin hash monero форк monero dwarfpool coffee bitcoin konvertor bitcoin bitcoin split abi ethereum chvrches tether proxy bitcoin бесплатный bitcoin logo ethereum cryptocurrency faucet iso bitcoin bitcoin safe coin bitcoin
bitcoin ферма
bitcoin cny bitcoin elena bitcoin poloniex сложность ethereum bitcoin работа bitcoin flapper ethereum serpent calculator ethereum
курс ethereum cryptocurrency chart ubuntu ethereum matrix bitcoin ethereum капитализация
bitcoin dogecoin pay bitcoin таблица bitcoin ethereum капитализация login bitcoin bitcoin talk blog bitcoin bitcoin yandex monero windows
yota tether bitcoin клиент bitcoin scan cryptonight monero курс bitcoin скрипт bitcoin monero client ethereum прогноз
bitcoin koshelek bitcoin продать phoenix bitcoin
monero proxy bitcoin registration е bitcoin bounty bitcoin txid bitcoin ethereum btc bitcoin картинки konvert bitcoin торги bitcoin
шахта bitcoin зарегистрировать bitcoin отзыв bitcoin bitcoin scripting tether gps ethereum gold With bitcoin, it is possible to forego the fees of using a payment processor or provider, and simply integrate payments into your own custom system. Those with a technical background have achieved this, such as Stephen Early, who integrated bitcoin payments into the POS system of his UK pubs single-handedly.Hardware walletsbitcoin paypal bitcoin cc cryptocurrency wallets bitcoin express 10000 bitcoin прогнозы ethereum автокран bitcoin bitcoin получить location bitcoin bitcoin lucky
kinolix bitcoin xapo bitcoin бесплатный bitcoin bitcoin pizza advcash bitcoin tether bitcoin games ethereum эфир bitcoin sberbank bitcoin atm bitcoin 5 вики bitcoin hack bitcoin 5 bitcoin
bitcoin x2 bitcoin elena bitcoin зарабатывать bitcoin кликер ethereum transactions
bitcoin future algorithm bitcoin bitcoin сервер bitcoin calculator cubits bitcoin ethereum видеокарты ann monero продажа bitcoin bitcoin location polkadot store будущее bitcoin wild bitcoin bitcoin exchange stock bitcoin
bitcoin signals bitcoin invest avatrade bitcoin bitcoin приложение ethereum доходность bitcoin торги cryptocurrency tech bitcoin майнер bitcoin status shot bitcoin coingecko bitcoin
bitcoin nvidia se*****256k1 bitcoin
bitcoin clouding bitcoin cards майнинга bitcoin github ethereum play bitcoin сложность bitcoin bitcoin рублях monero client bitcoin genesis dance bitcoin миллионер bitcoin bitcoin linux bitcoin land nanopool monero tether верификация
bitcoin гарант ethereum usd ethereum получить tether clockworkmod bitcoin майнинга кран bitcoin компиляция bitcoin майнить ethereum metropolis ethereum bitcoin novosti bag bitcoin bitcoin dogecoin calculator ethereum bitcoin generate
bitcoin book dorks bitcoin bitcoin api
bitcoin compromised 2016 bitcoin bitcoin bitcointalk сбербанк ethereum nya bitcoin
bitcoin mine bitcoin kraken ethereum майнеры bitcoin server bitcoin king asic monero bitcoin продать создатель bitcoin
