What is a cryptocurrency mining pool?

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.

Is P2Pool a mining pool?

P2Pool is another of the oldest pools left—it has no fees, but its hashing power might be lower because it is strictly a peer-to-peer mining pool without a mining farm operating as the central miner. In a mining pool, the number of coins mined over a period is proportional to the pool's computing power.

How do mining pools work?

A cryptocurrency enthusiast willing to reap profits through the standard mining process either goes solo using their own mining devices or joins a mining pool where a person's mining resources are clubbed with those of other pool miners to improve the mining output with enhanced processing. This article discusses how mining pools work.

How much does a pool cost?

Typically, pools may charge between 1% and 3% as pool fees. With mining becoming increasing popular aided by high-speed devices compatible with home computers, the chances of realistically profiting from individual mining are diminishing.