I keep seeing references to mining pools. What are they exactly?
Mike Mulhall Changed status to publish
I keep seeing references to mining pools. What are they exactly?
A mining pool is exactly what it sounds like. It’s a group of miners who share and pool together their processing power in hopes of generating blocks faster.
Due to the rising difficulty of mining algorithms, it could theoretically take individual miners hundreds of years to generate blocks and collect a reward on their own. The answer to this problem was mining pools.
Mining pools can be made up of just a few people to thousands of miners. Rewards are split among the miners based on the amount of work they contributed.