Mining Pool

Categories: Econ

Today, you can find miners under the streets (like coal miners) or in the sheets (cryptocurrency miners...because why leave bed?). A mining pool refers to the latter kind.

A mining pool is where cryptocurrency miners pool their mining computing power together over a network. Miners who are contributing to a mining pool will get part of the cut in the event that they solve the mining puzzle. To earn any cryptocoin, a computer must solve a ridiculously difficult puzzle, which takes time and an incredible amount of energy.

If you know about mining for crypto, you know the immense amount of computational power it requires. Plus, the process requires more and more power, as each mined coin is harder to mine than the previous one. Mining takes so much power that environmentalists cite it among their energy concerns (like, is there a way we could do this with less energy?).

Since mining takes so much power, smaller miners can pool their resources together to keep their necks in the mining game.

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