What are Mining Pools?



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What are Mining Pools? Video description.

A mining pool is a group of miners acting as a team to find blocks in the blockchain. The miners pull their resources together, increasing their likelihood of solving a block.

Cryptocurrency mining, in the context of bitcoin, is the competitive process where miners try to solve mathematical puzzles to verify and add new transactions to the bitcoin blockchain.
The miner who successfully mines a block is awarded some bitcoins and the transaction fees of that transaction.

Mining pools increase the chances of solving blocks and earning rewards even though the pool members must share the rewards earned.
A single miner may spend years trying to solve blocks in the blockchain successfully, but teaming up with other miners increases the success rate.

This video explains what mining pools are, how they work, and some of their pros and cons.

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Category
Cryptocurrency Mining
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