What is Group Mining?
Let's find out Group Mining meaning, definition in crypto, what is Group Mining, and all other detailed facts.
Group Mining is a term used to describe an event that involves multiple people participating in the mining process together. In order to make the process more efficient, they combine their computing resources. Group mining offers a variety of benefits. They include larger profits, reduced security risks, and shared rewards.
When it comes to the latter, group minings make sure that every miner receives rewards for successfully mining a block. The main factor that determines what kind of reward a miner receives is their contributed processing power that’s denoted in hash rate compared to other miners.
Each cryptocurrency has a different mining pool and reward categories which are divided by frequency and nature. It depends if they only distribute block rewards while keeping the transaction fees, or if they allow mining two or more cryptocurrencies that have similar hash types for more profit.
Additionally, a percentage of the mined cryptocurrency is taken by the pool managers which results in different payout rates.