• Goal : Pool participants all attempt to mine a block with the same coinbase recipient
    • Send money to key owned by pool manager
  • Distribute revenues to members based on how much work they have performed
    • Minus a cut for pool manager

Pool Variations

  • Pay per share : flat reward per share
    • Minus a significant fee
    • Can’t trust miners
  • Proportional : Since last block
    • Lower risk for pool manager
    • More work to verify
  • “Luke-Jr” Approach : No management fee
    • Miners only get paid out in whole BTC
    • Pool owner keeps spread

Pool Protocols

  • API for fetching blocks, submitting shares
    • Stratum
    • Getwork
    • Getblocktemplate
  • Proposed for standardization with a BIP
  • Increasingly important; some hardware support