It might seem that cryptocurrency mining is not that popular anymore. New-born blockchains use Proof-of-Stake (PoS) or other consensus mechanisms rather than Proof-of-Work (PoW). However, the leading and the most popular cryptocurrency, Bitcoin (BTC), still requires mining rigs and other mining attributes.
Changelly provides you with comprehensive crypto articles and tries to explain sophisticated blockchain basics in a simple and engaging way. What is a mining pool? How does mining pool work? What is the mining reward? We are going to observe the meaning of mining pools from different perspectives.Mining Pool Meaning
For a cryptocurrency mining to be smooth and efficient, a miner should obtain proper mining equipment. Powerful mining hardware that enables seamless crypto mining is quite expensive. The cost of a mining rig might reach up to $10,000 and more. It needs to be taken into consideration that powerful mining equipment will consume much electricity and this will inevitably lead to higher electricity bills.
If you want to mine cryptocurrency (Bitcoin, Monero, Ethereum, and so on), but for some reason, cannot afford expensive mining rigs, you can join a mining pool.BTC.com
A mining pool is a united group of miners that share computational resources (hashing power) between other members of a pool in order to discover a block, add it to a blockchain, and get a reward.
Besides the expensive side of the mining process, there is also a difficulty factor that adds complexity to the mining. When Satoshi Nakamoto introduced Bitcoin (BTC), anyone with a basic PC could mine BTC. Bitcoin has been strengthening its market value during the past ten years and obviously attracting new users and miners. The more people decide to mine BTC, the more difficult will be the process of mining.
According to the Blockchain.com, network difficulty is a measure of how difficult it is to mine a Bitcoin block, or in more te...