A mining pool combines many miners' hash power and shares the rewards, giving each small regular payouts instead of rare jackpots. Learn how pools work.
Smoothing out luck
A single miner might find a block once every few years, or never. A pool combines thousands of machines. The pool finds blocks regularly and splits the reward by how much work each member did.
How work is measured
The pool gives members an easier target. Any hash below that easier target is a share, proof of effort even though it isn't a valid block. Count shares, and you know how much each miner contributed.
Who chooses the transactions?
Traditionally the pool builds the block template, so a few large pools decide which transactions go into most blocks. Protocols like Stratum V2 let individual miners choose transactions themselves, which helps What does decentralized mean in Bitcoin?.
Pools can't break the rules
Even a big pool can't create invalid blocks: nodes would reject them. But a pool controlling most hash power could censor transactions or attempt a The 51% attack. Miners can switch pools within minutes if a pool misbehaves.
Solo vs pool, in numbers
A miner with one machine and 0.00001% of network hash power would expect a block roughly every 200 years solo. In a pool, the same machine earns a tiny but steady daily payout instead.
Spot pools on MyBitcoinExplorer
Many pools write their name into the coinbase transaction of the blocks they mine. Open a block's first transaction to see it, shown as untrusted text since anyone can write anything there.
Key takeaways
- Pools combine hash power and share rewards by contributed work.
- Shares are easier-target hashes that prove effort.
- Pools can't make invalid blocks, but large pools concentrate influence.
Common questions
How do pools pay miners?
With schemes such as PPS or FPPS (paid per share) and PPLNS (paid per share over recent blocks). Each spreads risk differently.
Can I mine without a pool?
Yes, it's called solo mining. You keep the whole reward if you win, but you may never win.
How do I join a mining pool?
Point your mining hardware at the pool's server address with your payout details; the pool tracks your shares.
Is pooled mining centralising Bitcoin?
A few large pools find most blocks, which is a concern. Miners can switch pools quickly, and newer protocols let them choose transactions themselves.