What is Bitcoin mining pool?
A mining pool is a group of miners who combine their computing power and split the mined bitcoin between participants.
How does it work
1. Mining rewards are paid to the miner who discovers a solution to a complex hashing puzzle first, and the probability that a participant will be the one to discover the solution is related to the portion of the total mining power on the network.
2.By mining, you can earn cryptocurrency without having to put down money for it.
3.. You need either a GPU (graphics processing unit) or an application-specific integrated circuit (ASIC) in order to set up a mining rig.
What Coin Miners Actually Do
Miners are getting paid for their work as auditors. They are doing the work of verifying previous bitcoin transactions. This convention is meant to keep Bitcoin users honest and was conceived by bitcoin's founder, Satoshi Nakamoto. By verifying transactions, miners are helping to prevent the "double-spending problem."
What is Bitcoin mining actually doing
What is the point of Bitcoin mining? This is something we're asked everyday!
There are many aspects and functions of Bitcoin mining and we'll go over them here. They are:
Issuance of new bitcoins
Confirming transactions
Security
What are the differences?
With Bitcoin Mining you need special hardware, so-called “ASIC Miners”. A masternode can be operated on a standard virtual server from 1.99 Euro per month in a normal datacenter. You also need special cooling and extremely low electricity prices for mining, simply because the energy consumption is so high due to the “proof of work” procedure.
For masternodes, you must own a minimum quantity of the corresponding coins and thus legitimize yourself for participation in the governance process. Masternodes are services that perform special tasks in the blockchain and use the “Proof of Stake” procedure.