What is a cryptocurrency mining pool?

Cryptocurrency mining pools are groups of miners who share their computational resources. Mining pools utilize these combined resources to strengthen the probability of finding a block or otherwise successfully mining for cryptocurrency. If the mining pool is successful and receives a reward, that reward is divided among participants in the pool.

How do I start a mining pool?

You also need to create a server configuration file to start a mining pool. Server configuration files typically end with the "Conf" extension in that format: name.Conf. While you can choose any name for the file, it is best to use the name of the cryptocurrency to be mined. For example, you could use Monero.Conf, Litecoin.Conf, Bitcoin.Conf, etc.

How does crypto mining work?

Crypto mining requires specialized resources, energy and advanced computational power. Miners use these resources to solve complex mathematical problems to mine new blocks. The first miner to solve the problem receives mining rewards in the form of cryptocurrency before the cycle repeats.

Are bitcoin mining pools decentralized?

Although many pools do make an effort to be decentralized, these groups consolidate much of the authority to govern the bitcoin protocol. For some cryptocurrency proponents, the presence of a small number of powerful mining pools goes against the decentralized structure inherent in bitcoin and other cryptocurrencies.