What Are Mining Pools?

A mining pool is a collective of Bitcoin miners who combine their computational resources to increase the chances of discovering new blocks. Instead of facing the unpredictable nature of mining individually, miners in a pool share the rewards based on their contribution, ensuring a more consistent income. As Bitcoin mining becomes more challenging and competitive, joining a mining pool can provide smaller miners with a steadier revenue stream. These pools support Bitcoin's decentralization by allowing individuals and smaller operations to participate effectively in mining.