In a mining pool, participants work together, and rewards are shared among them. Mining pools are the best place to start mining activities, especially if your computing power is quite low.
Bitcoin or other major cryptocurrencies are not easy to acquire. In the beginning, mining was profitable with few cards or even just one card. ASICs (Application-Specific Integrated Circuits) are specialized mining computers and are optimized to solve mining algorithms.
Mining pools were created due to the increasing complexity of Bitcoin mining. Energy consumption in cryptocurrency mining is increasing day by day.
A mining pool is a group of cryptocurrency miners who strive to solve the mathematical problems required of blockchains on PoW-based networks.
In a mining pool, you will be able to team up with other participants as opposed to having more or less computational power. All together should be able to find several blocks per day. You get rewarded when the pool finds a block.
When a block is found, it is added to previous blocks, forming the blockchain. The network rewards participants for their contributions. Due to increased network complexity and competition, it is less likely to find a block mining by working alone.
When a miner joins a pool, he needs to connect his rig and software to the pool’s servers. The mining pool starts sending key data after accepting the connection.
At the end of the work, the reward is divided proportionally among those who participated in the mining. Hashrate is a very important factor here. The higher the hash rate of the pool, the easier it is to find a block and get a faster return.