Bitcoin Pooled Mining (BPM), commonly known as Slush’s Pool, holds the distinction of being the oldest publicly available mining pool. Launched on November 27, 2010, as the Bitcoin Pooled Mining Server, it pioneered collaborative mining strategies. Initially, it employed a low-difficulty share method later found susceptible to exploitation. Today, it uses a score-based system that assigns higher value to newer shares, discouraging pool-hopping during mining rounds. The pool charges a fixed 2% fee and distributes rewards once users reach a customizable threshold. Its coinbase signature is "/slush/".
How Bitcoin Mining Pools Work
Mining pools enhance efficiency by combining computational power to solve blocks collectively. Participants receive rewards proportional to their contributed hash power. Key components include:
- Shares: Potential block solutions submitted by miners.
- Reward Distribution: Proportional to work done, often via Pay-Per-Share (PPS) or Proportional methods.
- Wallet Requirement: Miners need a cryptocurrency wallet to receive payouts.
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Global Bitcoin Mining Landscape
The top mining pools control significant portions of the network’s hashrate. As of recent data:
| Rank | Pool | Share (%) | Location | Notes |
|---|---|---|---|---|
| 1 | AntPool | 15% | China | Operated by BitMain. |
| 2 | F2Pool | 12% | China | Also known as DiscasFish. |
| 3 | BitFury Pool | 12% | Georgia | Private pool; no public access. |
| 4 | BW Pool | 8% | China | Founded in 2014. |
| 5 | Slush Pool | 6% | Global | First public mining pool. |
China dominates with four major pools (AntPool, F2Pool, BW Pool, BTCC) collectively accounting for ~50% of the network’s hashrate.
Why China Leads in Bitcoin Mining
- Low Energy Costs: Cheap electricity in regions like Sichuan.
- Hardware Access: Proximity to ASIC manufacturers (e.g., BitMain).
- Industrial Scale: Shift from individual to corporate mining.
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Top 10 Bitcoin Mining Pools (Detailed)
AntPool
- Operated by BitMain.
- Offers merged mining for Bitcoin and Namecoin.
F2Pool
- Supports multiple cryptocurrencies.
- Charges a 2.5% fee.
BitFury Pool
- Focuses on institutional mining.
- Runs three data centers in Georgia.
Slush Pool
- Introduced the score-based reward system.
- User-friendly interface with transparent stats.
FAQs
Q: How do mining pools prevent cheating?
A: Pools like Slush use scoring systems that devalue older shares, reducing incentives for pool-hopping.
Q: What’s the minimum hardware needed to join a pool?
A: While ASICs are ideal, some pools accept GPU miners for altcoins.
Q: Are mining pools profitable for small-scale miners?
A: Yes, but profitability depends on electricity costs and pool fees.
Key Takeaways
- Slush’s Pool revolutionized collaborative mining with its scoring model.
- China’s dominance stems from cost advantages and industrial-scale operations.
- Always compare pool fees and payout structures before joining.
For further reading, see BitcoinWiki’s Pooled Mining Guide.