How Does a Mining Pool Aggregate and Distribute Hashrate Efficiently?

A mining pool aggregates the hashrate of many individual miners into a single, massive computational force. Miners contribute their processing power to the pool and work collaboratively on finding a block.

When the pool successfully mines a block, the reward is distributed among all participating miners based on their proportional contribution of work (shares). This pooling reduces the variance in a miner's income, ensuring frequent, smaller payouts instead of infrequent, large ones, making mining income more predictable.