Mining pools unite individuals into groups where they collect bitcoins together. This method allows each member of a mining group to get a smaller and a less difficult part of work. As a result, all users contribute their part to the block generation and therefore get a reward according to the investment of processing power they provide. Over time, the collaborative reward is spread smoothly among users which reduces inequality between members.
Why is it necessary to enter mining pools?
Today, entering the niche of bitcoin mining and getting a reward is not that easy. The level of competition makes individual mining almost impossible. Therefore, people unite their computing powers to win the contest. Thus, having minimal mining equipment raise the prospect of success for users who take part in collective mining.
As an individual miner, one finds it hard to get and solve a block before anyone else does. Therefore, getting fees from solving a block becomes impossible. As a compensation, people developed pool mining that connects users from all over the world and allows them generate a higher level of hashrate. This increases their chances to find and process a block faster than the others.
The possible options of mining pools
- Local and cloud mining
Pooled mining activity can be combined with cloud-based mining. It means that you can make an online contract and participate in mining activity without even buying specialized equipment. On the one hand, this will minimize your expenses for hardware. However, you will need to pay for a contract from your mining profits.
- Multi-currency pools
There are also pools that mine different types of cryptocurrency in addition to bitcoin. They decide which currency to mine considering the most profitable options available at the moment. As a rule, they take in account such aspects as current hashrate of the pool and the rate of currency exchange.
- Payout rules
There are different pools that offer different payout options. There are pools that pay users right after a successful submit has been made. A proportion of coins is equal to the piece of mathematical issue solved by a team. Sometimes, issues remain unsolved and a payout in such case depends on a pool operator. In some pools, operators pay out even if the blockchain failed to be rewarding. In the other pools, a reward is shared only in case of successful mining.
The most widely-used mining pools
Antpool is a Chinese resource. This is one of the largest pools available on the web. Mining: BTC, BCH, LTC, ETH, ETC, ZEC, DASH, SCC, XMC, BTM
This is also one of the largest Chinese pools in the world. This resource mines more than 7% of all existing blocks.
Slush is one of the first and the most trusted mining pools on the Internet. Today, they mine about 3% of all available blocks.
This pool appeared on the market a year ago. Its target is to compete existing Chinese pools. Mining: BTC, BCH, LTC, ETH, ETC, ZEC, DASH, BTM, XMR
The main advantage of pool mining is a chance to receive real income without spending years and head-spinning computer powers. Make sure to choose a type of a mining pool that fit your personal needs and facilities.