hodl Explanation 7 - Mining pool

When you run a single miner, you contribute a very small portion of the total energy, or the total hash rate, to the network. You are one of many. Accordingly, the probability of finding a block is very low. If you do find a block, the reward is very valuable, but until that happens a lot of electrical energy and maintenance has to be invested.

To make the mining business more predictable, there are so-called mining pools. Miners can join one of these pools via the internet. If a miner then finds a block, the reward is divided between all the miners participating in the pool in proportion to their delivered hash rate.

schubi

Leave a comment

Experience Bitcoin in a playful way?

en_GBEnglish