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Mining Pool

Mining pools are networks of dispersed miners who work together to mine blocks and divide the payouts according to each participant’s pool contribution. By paying a small discount to the pool supervisor in the form of fees, this enables miners to level out their income. Hash rate, a measurement of the number of hashes—attempts to find a new block—performed per second, is used to gauge contribution to a mining pool.

Every time miners in the pool discover a block, they give the mining pool organizer the block reward, and the organizer compensates pool participants according to their contribution to the hash rate after deducting a nominal charge.