mining bitcoin

Bitcoin pooled mining is a way for multiple users to work together to mine bitcoins, and to share the benefits fairly.

Why do I need bitcoin pool?

Bitcoins are ordinarily only ever created in chunks of 25 at a time, with the whole 25 paid to a single person. Furthermore, the race to get the 25 BTC prize in a given block is highly competitive.

If you set out mining on your own, it may be a long time before you can make a return. Pooled mining allows you to receive smaller, more frequent, steadier payouts instead. If you have a slower computer, or a CPU miner, then pooled mining may be the only way that you will ever mine any bitcoins at all.

How does bitcoin pool work?

Our server gives users blocks of very low difficulty to solve. Each solution found is registered as one 'share'. Occasionally, a solution will happen to also meet the full-strength difficulty requirements of the Bitcoin network, resulting in a successful 25 BTC minting.

This 25 BTC is divided among all of the users that contributed to that round, weighted by the number of shares that they earned. Therefore, the reward earned by a given user is given by the following formula:

(25 BTC + block fees - 2% fee) * (shares found by user's workers) / (total shares in current round)

Shares do not carry over from one round to the next. When the pool mine a block, only users who worked on that block are rewarded, and only for work they did on that block. This is an unavoidable consequence of the way that Bitcoin mining in general works.

In fact the formula above is simplified. The real math behind the payout system is described here.

The 2% fee is used to keep this service alive.