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What is a mine pool?
21.09.2018
245Views
One of the best ways for new cryptocurrency enthusiasts to mine their coin of choice is by joining a mine pool. Mine pools have grown in response to the ever increasing difficulty of Bitcoin’s proof-of-work algorithm, which has made it nearly impossible for individual miners to contribute to the creation of new blocks and receive rewards.

While you could try and wing it going solo, the odds are stacked against you. As the current Bitcoin hashrate distribution demonstrates, the overwhelming majority of Bitcoin miners have joined mine pools.

The mine pool advantage

The advantage of joining a mine pool is in the increased consistency of receiving a reward for mining. Mine pools are exactly what they sound like, miners coming together and pooling their resources, read computing power, together. By pooling together, they increase their odds of solving the next proof-of-work problem and receiving a reward. Rewards are shared in proportion to a miner’s contribution to a mine pool. So even if a miner contributes very little, they still stand to collect at least a small amount of bitcoin. In essence, joining a mine pool creates consistent income generation, even if it means having to share rewards with everyone in the pool.

In bitcoin’s case, solo mining has become nearly impossible. Mine pools allow anyone to contribute to its sustainability and receive rewards for doing so. If anything, mine pools should be credited for keeping small scale miners involved. Fortunately, most coins are not nearly as difficult to mine as bitcoin is, meaning they run much less difficult proof-of-work algorithms.

mine pool

A mine pool for every coin

For those who are not sure which coin to mine, there is a unique mine pool called multipool which automatically switches the mine pool’s computation power towards whatever altcoin is currently most profitable. Multipool is great tool for those concerned with creating a diverse portfolio as it allows miners to collect a variety of different coins.

Joining a mine pool is easy. Once you have selected the coin or mine pool you wish to join, simply download their client software or create an account. Follow the prompts and allocate your computer power accordingly. With mine pools, everyone can benefit while contributing to the sustainability of blockchain.

Read a blogpost “What is cryptocurrency mining”.

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