As you know bitcoins are produced by solving a complex algorithm. Whichever computer / miner solves the problem first receive his stash of Bitcoins. In order to solve bitcoin algorithm, a huge amount of computational power is required. Since a block is awarded to single person, it is nearly impossible for a single person to achieve a block. Pooled mining allows a lot of different people contribute to generating a block, and the reward is then split among them according to their processing contribution. You receive smaller, more frequent, steadier pay-outs in pooled mining, depends on your processing power. If you have a CPU or a GPU miner, then pooled mining may be the only way that you will ever mine any bitcoins at all.

Personally i use Slush’s Pool and BitMinter. You can also check our previous post on hot to mine bitcoins on your pc.

Following is the list of some of the popular pools.

Pools listed above has very good reputation in bitcoin community and you can join them without any doubt. How can you be sure the pool owner doesn’t steal all your bitcoins? You can’t. However, as one pool owner, Slush, notes:

In theory, as the Bitcoin pool operator, I could keep the 25 BTC from a block found by the pool for myself. I’m not going to do this, but I completely accept that people do not trust the pool operator. It is their freedom of choice, and Bitcoin is about freedom.

Also check What Is Bitcoin – A Beginners Guide

Share on Tumblr