BitcoinIntermediate

Mining pool

A group of miners that coordinates work and shares rewards using an agreed payout scheme.

PLAIN-ENGLISH DEFINITION

In more detail

Finding a block alone can mean a long wait between payouts. Pools combine participating miners' work so rewards can be distributed more regularly, according to the pool's rules. The coordinator often influences which transactions go into candidate blocks, so pool organization matters as well as raw computing power.

IN THE WILD

How you might use it

A small miner submits work shares to a pool and receives payouts under that pool's scheme instead of waiting to find a block alone.

Independent mining computers route patterned work tiles and share receipts to a coordinator with an adjustable reward allocation tray.
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By Crypto Dictionary · Published · Updated

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