A mining pool combines hash power by connecting many miners to a central server that manages and distributes the work. Each miner contributes computational power, but instead of working independently, they cooperate to solve the same block. The pool server breaks the overall mining task into smaller, easier pieces and assigns these pieces to miners. This lets everyone work on a shared goal without duplicating effort. Miners then solve these smaller tasks and submit “shares” back to the pool, which act as proof of their contribution.

Shares don’t usually solve the actual block, but they show how much work each miner has performed. When the pool eventually finds a valid block, the reward is distributed based on the number of shares each miner submitted. This system lets even small miners earn steady payouts, since they no longer rely on the unlikely chance of solving a block alone.

The pool constantly adjusts difficulty for individual miners to match their hardware. Strong devices receive harder tasks so they don’t overwhelm the server, while weaker miners get easier ones to keep their share submissions stable. All of this combined hash power raises the pool’s chances of finding blocks more often than any single participant could. By sharing work and rewards, the pool provides consistent income, reduces variance and creates a more predictable mining experience for everyone involved.