A cryptocurrency mining pool is a group of miners who combine their computing power to increase their chances of finding new blocks and earning rewards in a more consistent and predictable way.
When a mining pool successfully mines a new block, the rewards are distributed among the miners in the pool based on their contributed computational power.
Mining pools charge a small fee for their services, typically between 1-3% of the rewards earned by the miners.
Mining pools can be centralized or decentralized. Centralized mining pools are controlled by a single entity, while decentralized mining pools operate on a peer-to-peer basis.
Decentralized mining pools are generally considered to be more secure and resistant to censorship, but may also be less efficient due to higher communication overhead.
Mining pools can also use different reward distribution methods, such as Proportional, PPLNS (Pay Per Last N Shares), and SOLO. Each method has its own pros and cons.