🔧 Pool Mechanics: Shares & Work Distribution

Understand how pools coordinate thousands of miners efficiently

How Mining Pools Work

Pools coordinate work distribution and track contributions through a share system. Let's explore the mechanics interactively.

Interactive Pool Simulator

Adjust miners and pool hashrate to see how the pool distributes work and finds blocks. This demonstrates the collaborative nature of pool mining.

5
2 miners10 miners
50%
1% (Tiny)100% (Dominant)
Blocks Found
0
Shares per Miner
20
Total Pool Shares
100

The Share System

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What are Shares?

Shares are proof-of-work submissions that are easier than finding an actual block. The pool sets a lower difficulty target, allowing miners to submit valid shares frequently. This proves they're actively mining and allows the pool to measure each miner's contribution.

Example: If network difficulty is 1T and share difficulty is 1M, miners submit ~1 million shares per block found
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Work Distribution

The pool server assigns each miner a unique section of the nonce space to search. This prevents duplicate work and ensures the entire pool's hashrate is used efficiently. Miners continuously receive new work assignments.

Protocol: Miners connect via Stratum protocol and receive work assignments every few seconds
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Valid Block Detection

When a miner finds a share that also meets the network difficulty, it's a valid block! The pool immediately broadcasts it to the network and credits all miners based on their recent share submissions.

Speed: Pool broadcasts blocks within milliseconds to minimize orphan risk

Pool Infrastructure

🖥️

Pool Server

Coordinates work distribution, validates shares, tracks contributions, and manages payouts. Must be highly available and scalable to handle thousands of miners.

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Network Node

Maintains connection to the blockchain network, receives new blocks, validates transactions, and broadcasts found blocks. Critical for minimizing orphan risk.

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Database

Stores miner accounts, share submissions, found blocks, and payout history. Must handle high write throughput as shares arrive continuously.

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Payout System

Calculates rewards based on shares, applies fees, manages minimum payout thresholds, and sends transactions to miners' wallets automatically.

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Why This Matters

Understanding pool mechanics reveals the infrastructure and coordination required to make collaborative mining work. Pools must balance technical complexity with fairness, reliability with decentralization. The share system is elegant: it transforms an all-or-nothing lottery into measurable contributions that can be rewarded proportionally.