What is mining pool

What is mining pool?

n the context of cryptocurrency mining, a mining pool is the pooling of resources by miners, who share their processing power over a network, to split the reward equally, according to the amount of work they contributed to the probability of finding a block. A "share" is awarded to members of the mining pool who present a valid partial proof-of-work. Mining in pools began when the difficulty for mining increased to the point where it could take years for slower miners to generate a block. The solution to this problem was for miners to pool their resources so they could generate blocks more quickly and therefore receive a portion of the block reward on a consistent basis, rather than randomly once every few years. 

Contents

  

• 1Mining pool methods
  • 1.1Pay-per-Share
  • 1.2Proportional
  • 1.3Bitcoin Pooled mining
  • 1.4Pay-per-last-N-shares
  • 1.5Geometric method
  • 1.6Double Geometric method
• 2Multipool mining
• 3See also
• 4References
• 5External links
  
  

  How exactly does a mining pool work?

  In the context of cryptocurrency mining, a mining poolis the pooling of resources by miners, who share their processing power over a network, to split the reward equally, according to the amount of work they contributed to the probability of finding a block.
  
  
  What is a share in mining?
  A share is merely an accounting method to keep the miners honest and fairly divide any rewards earned by the pool. There is no need to keep track of sharesin solo mining because you will not split the reward and can't cheat yourself. Usually pools use a difficulty of 1 as the target for a share.
  
  
  What is a block in mining?
  Bitcoin mining is the process of adding transaction records to Bitcoin's public ledger of past transactions or blockchain. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place.
  
  
  What is a mining GPU?
  Graphics cards, or graphics processing units (GPUs), are more effective at miningthan CPUs and as Bitcoin gained popularity, GPUs became dominant. Eventually, hardware known as an ASIC, which stands for Application-Specific Integrated Circuit, was designed specifically for mining bitcoin.
  
  
  What is Cloud Mining for Bitcoin?
  Cloud Mining is the process of bitcoin mining utilizing a remote datacenter with shared processing power. This type of cloud mining enables users to minebitcoins or alternative cryptocurrencies without managing the hardware.
  
  
  What is a Bitcoin pool server?
  Bitcoin mining pools are a way for Bitcoin miners to pool their resources together and share their hashing power while splitting the reward equally according to the amount of shares they contributed to solving a block.