mining pools

Mining pools are groups of cryptocurrency miners who combine their computing power to increase the chances of successfully solving complex mathematical puzzles required for validating transactions and earning rewards. When the pool succeeds, the rewards are shared proportionally among members based on their contributed processing power. This collaborative approach helps individual miners earn more consistent payouts compared to mining alone, especially since the probability of solving a block individually is very low. Essentially, mining pools pool resources to improve efficiency and stability in earning cryptocurrency rewards.