Pool

As part of bitcoin mining, mining “pools” are a network of miners that work together to mine a block, then split the block reward among the pool miners. Mining pools are a good way for miners to combine their resources to increase the probability of mining a block, and also contribute to the overall health and decentralization of the bitcoin network.

Reference:

https://support.blockchain.com/hc/en-us/articles/213276463-Bitcoin-terms-glossary

A collection of mining clients which collectively mine a block and then split the reward between them. Mining pools are a useful means to increase the probability of successful mining a block as difficulty rises. As the amount of computing power needed to mine a block has risen, those who do not have the resources or skills needed to compete can merge their computing power with others and get a proportional return on blocks discovered. The rise in pools has also given rise to concentrations of hashing power, leading to concerns of a 51% attack . So far, in practice, miners have been careful not too violate this limit to protect the integrity of the system and to maintain the value of their holdings.

Reference:

Malone, J.A (2015). Glossary of Bitcoin Terms and Definitions. United States: Lulu Press, Inc

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