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You're reading from  Bitcoin Essentials

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Published inFeb 2016
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ISBN-139781785281976
Edition1st Edition
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Albert Szmigielski
Albert Szmigielski
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Albert Szmigielski

Albert Szmigielski is a thinker, a computing scientist, a software engineer, and a blockchain professional. He holds a BSc in Computer Science and an MSc in Digital Currency. He has been involved in a number of start-ups and software projects. He believes in a decentralized, distributed nature of storing information, and hence has an interest in Bitcoin and blockchain technology. Albert is a researcher at CryptoIQ and a mentor at the Blockchain Institute. He frequently contributes to his blog at blog.cryptoIQ.ca.
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Pool mining discussion


Pool mining started to appear in 2010. When you compete against other miners as a solo miner, your proportion of network hashing power may be small. As a result, you may only solve a block perhaps once a month or even once a year (depending on your hashing power). We can only calculate what the expected time to solve a block will be; however, we cannot predict exactly when it will happen.

To smooth out this variance, miners started to organize themselves into pools. In pool mining, a large number of miners work together to solve a block. Once someone in the pool finds a block, the rewards are shared among all miners belonging to the pool. This makes the payout more frequent, albeit smaller, and more predictable.

Mining pools

There is a variety of mining pools, with a variety of strategies. Perhaps the most popular (and fair) is the proportional pool. Here the reward is distributed to miners based on how much work they have contributed. How is a contribution calculated...

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Bitcoin Essentials
Published in: Feb 2016Publisher: ISBN-13: 9781785281976

Author (1)

author image
Albert Szmigielski

Albert Szmigielski is a thinker, a computing scientist, a software engineer, and a blockchain professional. He holds a BSc in Computer Science and an MSc in Digital Currency. He has been involved in a number of start-ups and software projects. He believes in a decentralized, distributed nature of storing information, and hence has an interest in Bitcoin and blockchain technology. Albert is a researcher at CryptoIQ and a mentor at the Blockchain Institute. He frequently contributes to his blog at blog.cryptoIQ.ca.
Read more about Albert Szmigielski