Mining pools

As more and more miners start to mine for coins, the difficulty of the coin increases. Pools are groups of miners who come together to mine a block, and once a reward is given for successfully mining the block, the reward is split among the miners who mined in the pool; there are various ways in which the payment of the reward is split, and we will be discussing these methods in the next section. The reason for having various reward split methods is because hashing is a purely brute-force-based mechanism, hence it is pure luck for any miner to find the correct nonce and then go ahead with the process of successfully submitting a block in the blockchain, so it would be unfair for other miners in the pool if their hashing and mining efforts go unaccounted for. Hence, on the basis of hashing power, the reward is split, but still there are various methods by which the...