What is a Mining Pool?

Man with pickaxe mining cryptocurrency

Mining pools are group of miners working together to mine cryptocurrency and share the rewards based on the hashrate everyone contributes.

While success in individual mining grants complete ownership of the reward, the odds of achieving success is very low because of high power and resource requirements. A mining pool increases the success rate as the cumulative effort leads to better chances of finding a block, though the joint effort comes at the cost of shared reward.

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