If you’ve read Solo Mining, you’ll have a good starting view of Pool Mining.

Look at the choir singing together and pulling their energy together to get their rendition perfect.

Or look at the electricity grid again in the post on Solo Mining and imagine that that same owner decides to collaborate with nine more families to generate the power they all use.

So also Pool Mining involves a group of people pulling their resources in form of equipment to mine cryptocurrencies.

It means that for every block discovered, the reward for the discovery is shared among all the miners but according to their contributing processing power.

How is this measured?

Each miner sends a proof-of-work to the central system which shows the value of problem each miner solved for each block found.

Once a block is found, the reward is given to all participants.

I’m sure you might be thinking about which is better – Solo Mining or Pool Mining?

You can read that here.