Mining Pool

A mining pool is a collaborative group of miners who combine their computational resources over a network to increase the probability of finding a block. By pooling hashrate, individual miners receive smaller, more frequent payouts rather than waiting long periods for a large, uncertain block reward.

The pool operator manages the distribution of rewards proportional to the amount of work each participant contributes. This reduces the variance in income for individual miners.

It is the standard way for smaller participants to remain competitive in the current mining landscape.