What is a cryptocurrency mining pool ？Can mining pools make money

Miners compete for new blocks by solving complex mathematical problems ，The fastest-solving miners will package transactions into new blocks and join blockchain ，Rewards for Bitcoin

What is a cryptocurrency mining pool ？For example ，Bitcoin is a digital currency based on blockchain technology ，We simply compare blockchain to an account book ，One block is a page of the account book 。and “Mining ”It is to record the transaction process on pages of paper ，in “Blocks ”It's every page of paper ，They need to be sealed ，Called “Pack ”。Specifically ，Nodes collect transactions across the entire network in the past ten minutes ，Write these transactions into a block ，and broadcast to other nodes in the network ，When most nodes accept a block ，Then the rewards written to yourself in this block will be accepted at the same time ，then “Mining ”success 。

one 、Consensus mechanism

1、Why blockchain needs consensus mechanism ？

The consensus mechanism of blockchain is like the rules of the game ，He told everyone how to determine which transactions are valid ，Which are invalid ，Avoid cheating from it 。

Because blockchain is decentralized ，That is, there is no bank 、The central bank makes the decision ，So a way to make everyone agree that what information is correct 。

2、What is the relationship between consensus mechanism and mining

The consensus mechanism and mining are closely related ，Especially when used PoWMechanism of blockchain 。

In this situation ，Mining is actually part of the consensus mechanism ，Or a means to achieve a consensus mechanism 。In adoption PoWBlockchain ，For example, Bitcoin ，Mining is the main way to reach consensus 。

Miners compete for new blocks by solving complex mathematical problems ，The fastest-solving miners will package transactions into new blocks and join blockchain ，Rewards for Bitcoin 。But for other consensus mechanisms ，For example, proof of equity （ProofofStake,PoS），「Mining 」This word may no longer apply ，Or its meaning is different 。exist PoSmiddle ，No miners ，Instead, it is the coin holder or the selected verifier to reach consensus and receive rewards 。

two 、PoW（Proof of work ）mechanism

1、PoWPrinciple

Simply put ，PoWIt's a participant （Usually a miner ）Prove that they have a mechanism to do a certain amount of calculation work 。This work is usually to solve a math problem ，After the resolution, a proof will be generated ，This proof can be easily verified by others ，But it's hard to produce 。

User sends transactions ：When a user wants to send a transaction （For example ，Transfer Bitcoin ）hour ，They will send transaction information to the network 。

Miner Verification Transaction ：The miners will receive these transactions ，and start verifying that they are legal 。

Calculate hash ：In order to add new blocks to the blockchain ，Miners need to solve a math problem （It is usually to find a specific hash value ）。

Find the solution ：Once a valid solution is found ，The miner will broadcast this solution and new blocks to the network 。

Receive a reward ：Other nodes will verify this solution ，If it's correct ，Miners' union receives some rewards （Usually cryptocurrency ）。

New blocks join blockchain ：at last ，This new block will be added to the blockchain ，The transaction will be confirmed 。

2、PoWWith Bitcoin

Bitcoin was the first to be adopted PoWCryptocurrency mechanism ，The purpose is to solve the problem of double payment and ensure the security of the transaction 。

In the physical world ，When you use one 100After purchasing the dollar bills ，That bill will be transferred from you to the store owner ，You can't use that one anymore 100The dollar bill is here 。But in the digital world ，As data can be easily copied and disseminated ，So double payment has become a serious problem 。For example ，Suppose you have a virtual currency ，You use this currency to buy two products at the same time 。If the system cannot detect this behavior ，Then you will use it successfully 100Yuan obtained 200Yuan's products 。However ，Every transaction in the blockchain will be verified by most nodes ，Once the verification is successful and added to the blockchain ，This transaction can no longer be changed or paid repeatedly ，Therefore, the problem of double payment is effectively solved 。

3、PoWApplications in other cryptocurrencies

Except for Bitcoin ，Many other cryptocurrencies have also adopted PoWmechanism ，For example, Litecoin created inspired by Bitcoin ，With faster transaction speed and lower transaction costs 。

4、PoWRelated investment strategies

Mining pool investment ：In addition to mining by yourself ，Joining a mining pool is a way to reduce risks 。（That is, mining in groups ，Shared income ）

Hardware upgrade ：Continue to pay attention to the development of mining hardware ，To maintain competitiveness 。

butPoWMining is an extremely competitive market ，A group of people are hard to reach 。According to statistics, we must squeeze into the world 10Large mine ，At least the market value is 3Starting from $100 million 。If you're optimistic about one PoWVirtual currency ，Simply buying and holding is a simpler investment strategy 。

three 、Summarize

Advantages of mining pools ：Provide more stable income ，Reduce energy costs and generate higher income 。Mining using high-speed equipment is becoming more common ，But it is almost impossible to make profits through personal mining machines 。