When you are mining or trading on the bitcoin then you might want to know about the bitcoin mining pool. Well, it is a method in which miners join their hash power to mine the bitcoin and the reward is divided among them according to their hash power.
The share of the award will be shared according to the proof of the work you provide done by you to mine a bitcoin. It is done because if a miner starts mining the bitcoin alone then it might take him or her years to generate a single block.
So bitcoin mining pool is the solution for the miner to get the mining process quickly.
Bitcoin mining pool
Here are some of the basic things which are to be considered when you start bitcoin mining.
If you decide to mine the bitcoin then you have to ensure that you are in consensus with the bitcoin network. The best way to ensure is by taking the help of the official bitcoin client.
But when you are taking the help of the bitcoin mining pool then you have to make sure that they are using the right way. It means that they are working according to the agreement toward the bitcoin.
If they are not following then it is your duty to report them. As there are many people who have threatened to use the software which can hard fork the bitcoin network. If that happens then it can affect the price of the bitcoin and you will lose a lot of money.
When you start the bitcoin mining you have to activate the segwit and rely on it. Here are the following mining software is needed to upgrade the support segwit.
- Full nodes:
- Bitcoin core 0.14.1
- Bitcoin knots 0.14.1
- Mining software
- Pool software
- Relay software
- Bitcoin FIBRE
Bitcoin mining pools
There are many bitcoin mining pools which are available for you to choose from. So it is very important for you to choose the right one. It will better for you to choose the smaller pool as it will help you to avoid the potentially harmful concentration of the hash power.
Here is the list of bitcoin mining pools which can look forward to joining:
BTCC is one of the biggest bitcoin mining pools that own around 15% of the network hash rate. It is located in China.
Slush pool is the company originated from the Czech Republic which is run by the Satoshi labs. It is the first bitcoin mining pool and has maintained its percentage in the hash rate of 7.
Eligius has been around since the beginning of the bitcoin mining pools and was bitcoin care developer Luke dashjr. The portion of the bitcoin hash rate it holds is 1%.
Once upon a time, it was one of the biggest bitcoin mining pools. But at present, it holds very less hash rate of the network which is less than 1%.
We hope that this has helped you to understand the bitcoin mining pool. So if you are looking to start the mining process then follow the above mention terms. This is the best way to start the bitcoin mining process with proper legal terms.