Pools combine power, but all focus on a block? How do they all earn?

So, As far as I understand, when you join a pool you help work on the block that they are currently trying to solve and get paid for. I understand that, and how it's all split up....

But with a ton of different pools working on the same blocks... They all seem to pay out EVERY block... How? Surely one is faster than another, and solves the block first, being paid all of the winnings?

How does everyone on different pools get paid for each block? I understand that if it's too slow they'll get nothing... but how? Thanks.

TechNobo

Posted 2017-09-14T17:43:30.817

Reputation: 11

"They all seem to pay out EVERY block". Why you think that? Can you provide some resource confirming this statement? It's not that I don't believe you, I'm just curious, as I don't know how pools work. – luislhl – 2017-09-15T02:36:53.827

Answers

Generally (in centralized mining pools), the block everyone is working on mining in the pool, is a block which pays the pool owner. When a valid block is found, the pool owner receives the reward and distributes it to the members in the pool. So every block found, each user receives a little bit of the total reward, generating a more steady income stream for the members who own their own would have very little chance of ever finding a block and getting paid the entire reward.

There is no way for a member of the pool to change who the block pays, without being excluded from the share of the rest of the pool, if they tried to change it to make it pay themselves they would just be solo-mining

MeshCollider

Posted 2017-09-14T17:43:30.817

Reputation: 8 735