Today, anybody can become a Bitcoin miner by just running Bitcoin mining software and mining modules with specialized Bitcoin mining hardware. Mining software listens transaction broadcasts through the peer-to-peer network, and performs appropriate tasks to process and confirm these transactions.
Bitcoin miners there perform this tasks because they could earn transaction fees paid by the users for faster transaction processing, and newly created bitcoins gets issued into existence according to a fixed formula.
In the mining pool, miners share their hashing resources to solve blocks together, and the rewards are then distributed amongst the mining members.
Those who are new to bitcoin, and mining might be thinking about, what is bitcoin mining pool and what are the bet mining pool options out there? The post tries to let you understand.
# What’s a Bitcoin Mining Pool?
A bitcoin mining pool is a group of miners, who have shared their hashing resources, to solve various blocks together and then the rewards gets distributed amongst the members.
Let’s understand, John runs a Bitcoin mining farm with 1% of the entire Bitcoin network hash rate. His machines only find, on average, one out of every 100 blocks. John becomes impatient and wants more frequent payouts.
Then, he joins a mining pool with 20% of the entire network hash rate. Instead of getting paid on average once per 100 blocks, John now receives smaller but more frequent payouts every after 5 blocks.
# Popular Bitcoin Mining Pool Options?
The following mining pools are believed to be the best fully validating blocks with Bitcoin Core or later versions.
The BTCC pool is a Bitcoin exchange, wallet, and a mining pool, that is located in China. Its mining pool currently controls around 15% of the entire mining network hash rate.
Slush Pool is run by the Satoshi Labs, a popular Bitcoin company based in the Czech Republic. It was the first mining pool, which still maintains around 7% of the entire network hash rate.
Bitmain operates Antpool, and some consider them to be a malicious stuff in the present Bitcoin ecosystem, because of the popular AntBleed scandal, where they were intentionally including malware within mining equipment they use to sell. Bitmain claimed this was a feature, and not a bug. This malware could enable Bitmain to remotely shut down equipment of users or competitors thus increasing their own profitability. Such behavior could pose a risk to the whole Bitcoin network.
Eligius was one of the world’s first Bitcoin mining pool, founded by Luke Dashjr, a Bitcoin Core developer. Today, the pool is said to control just under 1% of the entire network hash rate.
BitMinter, was once one of the largest Bitcoin mining pool, now it also controls less than 1% of the entire network hash rate.
The Kano CKPool was founded in 2014, and presently it has around 3% of the entire network hash rate under its own control.
The F2Pool, is second largest Bitcoin mining pool, with around 25% of the entire network hash rates. F2Pool’s user interface is in Chinese language, which makes it difficult for English speakers to join-in.
BW Pool controls around 7% of the entire network mining hash rate. Like F2Pool, its user interface is also in Chinese, which makes it difficult for English speakers to join ever.
Although seen publically in block explorers, and hash rate charts, BitFury is still a private mining pool, that cannot be joined.
Those are some of the best and most popular bitcoin mining pool, joined by large numbers of bitcoin miners across the globe.
What do you think about the bitcoin mining pool, and the way it works? Please let us know through your comments below..