Mining Pool Definition
In cryptocurrency mining or cryptocurrency network, a mining pool refers to a group of miners who combine their efforts. Skills, resources and electronic chips or hardware to find a network or block. Otherwise called pooled mining, this is an approach to cryptocurrency mining where a group of cryptocurrency miners collaborate to generate a block. The rewards that come with the generation are distributed along the moners who form the pool.
A Little More on What is a Mining Pool
The amount of work each miner put in a pooled mining determines the reward that will be allocated to them. Usually, the objective of a mining pool is to achieve a faster and more productive result, it entails cryptocurrency miners combining their resources over a network so as to reduce the complexity of the network.
Before a mining pool is created, all the miners involved agree to certain terms that determine their contributions to the pool and the distribution of profit. The mining pool has many benefits over doing individual mining. One major benefit of a mining pool is that it aids the achievement of a faster hashing output, through the collaboration of skills and resources of cryptocurrency miners.