A mining pool is a joint venture undertaken by digital currency miners to pull together their resources in order to mine digital currencies in a more effective way.
Each individual will devote their software and hardware to the mining pool and partake in the mining process - The mined currency will be put into a group pool, and rewards will be given out depending on the share of that persons work - Proof of work has to be solved in order to receive a reward. There are many different types of mining pool on the market including the Pay per share, the proportional, the pay per last N shares and their geometric method. Each method has its advantages and disadvantages. A derivative of a mining pool is a Multipool, which aims to calculate the most profitable digital currency at the time and push its miners to gather this currency.
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