Bitcoin Mining Pool

This section describes what is Bitcoin mining pool.

If one Bitcoin farm with 3,000 miners is still not fast enough, can we build a mining pool of many mining farms and miners networked to work together? The answer is yes.

Actually, today all Bitcoin blocks are mined by mining pools. Here is a list of top 10 Bitcoin mining pools and their hash powers:

Pool name       Hash Power    
Antpool                28% 
F2Pool                 21%   
BTCC Pool              13%   
BitFury                 9%
BW.COM                  8%
Slush                   6%
BitClub Network         4%
Kano CKPool             4%
KnCMiner                3%
Telco 214               2%

The hash power of each mining pool represents their chance of successfully mining a block in the Bitcoin block.

If you join a mining pool and the pool receives the Bitcoin reward for mining a new block, you will receive a small percent of the reward too.

For example, you join the Antpool with your Antminer S9 of 14TH/s. Assuming that Antpool has a total hash power of 3,200 PH/s. Here is how low it will take for the pool to mine a new block:

8 ZH / (3,200 PH/s)
= 8,000,000 PH / (3,200 PH/s)
= 2,500 second
= 42 minutes

So on average, Antpool will earn (ignore transaction fee earnings for a moment):

12.5 BTC per 42 minutes
= $125,000 USD per 42 minutes
= $4,285,714 USD per day

You will earn proportionally to your miner hash power:

$4,285,714 USD * 14 TH / 3,200 PH (per day)
= $4,285,714 USD * 14 TH / 3,200,000 TH (per day)
= $18.75 USD / day

Now you see the advantage of joining a mining pool instead of doing solo mining by yourself. By joining a mining pool, you can make about $18 USD on each every day. By doing solo mining, you make $125,000 USD on every 18 years.

Table of Contents

 About This Book

 Introduction of Bitcoin

 Bitcoin Blockchain

 Bitcoin Wallet

 Bitcoin Core

 Bitcoin Transaction

 Bitcoin-Qt - Bitcoin Core GUI

Bitcoin Mining

 What Is Bitcoin Mining

 Computation Effort of Bitcoin Mining

 Bitcoin Mining Machine - "Miner"

 Bitcoin Mining Farm

Bitcoin Mining Pool

 Is Bitcoin Mining Profitable

 Bitcoin Consensus Rules

 Bitcoin Block Data Structure

 Bitcoin Transaction Data Structure

 Bitcoin Blockchain APIs

 Copay - Bitcoin Wallet

 Archived Tutorials


 Full Version in PDF/EPUB