Cryptocurrency mining pools are groups of miners who share their computational resources. Mining pools utilize these combined resources to increase the chances of successfully mining for cryptocurrency. If the mining pool is successful and receives a reward, that reward is divided among participants.
What is a cryptocurrency pool?
Pools were created when cryptocurrency mining reached a difficulty level that only miners with enormous capacity could accomplish. This crowded small miners out of the competitive mining process, forcing them to work together to compete with the large mining firms .
What is a bitcoin mining pool?
Bitcoin mining pools are organized and operated by third-party groups to maintain the hash power from miners across the globe. The pool shares the Bitcoin earned in ratio to the contributed hash power into the pool. In crypto mining pools, miners merge their resources to effectively mine together.
