Imagine a group of miners joining forces to increase their chances of validating a block and reaping the rewards. This is a mining pool.
How it works?
Each miner connects their machines, providing computational power (hashrate) to a central server in the pool. Together, they contribute to the network, making the search for blocks more efficient and, of course, more rewarding.
But, wait! If I have the highest hashrate does that mean I get all the rewards? Nope! Let's think of the mining universe as a gigantic treasure hunt.
Each miner contributes to the search for the undiscovered block, making Bitcoin mining a collaboration. When the block is found, rewards (bitcoins) are distributed randomly.
Would a solo miner opt for a pool?