$BTC A mining pool is a platform that groups multiple miners to work together in validating transactions and adding new blocks to each blockchain. By joining forces, participants increase their chances of finding blocks and, therefore, receiving rewards.
These rewards, which include new coins and transaction fees, are distributed proportionally according to the hashrate, or computing power, contributed by each miner.
Key advantages of mining pools
Mining pools were born as a response to the increasing difficulty of mining each cryptocurrency. Without a mining pool, each miner would have to spend electricity for long periods without receiving profits.
