What is a Cryptocurrency Mining Pool?
A brotherhood-based approach to mining crypto, mining pools allow miners to combine their compute resources for a better chance of mining. earn rewards.
How to crypto
In the early days of Bitcoin (BTC), crypto enthusiasts only needed a basic personal computer with an internet connection to generate new BTC tokens through a distributed computing process called mining.
However, with more people chasing the same number of block rewards, the Bitcoin mining process has become more difficult over time. In fact, the reward quantum will gradually halve every four years, making it less rewarding for individual miners who will need to allocate greater compute resources over time.
Available on blockchain protocols that use a proof-of-work (PoW) consensus mechanism, this mining process requires the deployment of application-specific integrated circuits (ASICs) in the form of large rigs to complete the complex nature of math problems in the time it takes to mine a block.
With the increasing difficulty of the mining algorithm and the rewards for mining a block decreasing over time, it has become impossible for a single piece of personal computing equipment to successfully mine a block.
This brought to the fore the concept of a cryptocurrency mining pool, where individual miners or users come together and pool their computational resources to improve their chances of mining a block and to share the rewards received between them.
Existing since 2010, when Slush Pool was formed as the first Bitcoin mining pool, now there are many popular mining pools for cryptocurrencies like Ether (ETH), Zcash (ZEC), Bitcoin Cash (BCH) , Bitcoin SV (
A brotherhood-based approach to mining crypto, mining pools allow miners to combine their compute resources for a better chance of mining. earn rewards.
How to crypto
In the early days of Bitcoin (BTC), crypto enthusiasts only needed a basic personal computer with an internet connection to generate new BTC tokens through a distributed computing process called mining.
However, with more people chasing the same number of block rewards, the Bitcoin mining process has become more difficult over time. In fact, the reward quantum will gradually halve every four years, making it less rewarding for individual miners who will need to allocate greater compute resources over time.
Available on blockchain protocols that use a proof-of-work (PoW) consensus mechanism, this mining process requires the deployment of application-specific integrated circuits (ASICs) in the form of large rigs to complete the complex nature of math problems in the time it takes to mine a block.
With the increasing difficulty of the mining algorithm and the rewards for mining a block decreasing over time, it has become impossible for a single piece of personal computing equipment to successfully mine a block.
This brought to the fore the concept of a cryptocurrency mining pool, where individual miners or users come together and pool their computational resources to improve their chances of mining a block and to share the rewards received between them.
Existing since 2010, when Slush Pool was formed as the first Bitcoin mining pool, now there are many popular mining pools for cryptocurrencies like Ether (ETH), Zcash (ZEC), Bitcoin Cash (BCH) , Bitcoin SV (
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