The Mining Pools shall use various methodologies to assign work to the Miner. Before accessing the Pool, the Miner is recommended to pay attention to uniformity in hash tasks that get assigned by the Pool server irrespectively of the mining power of a particular Miner’s device.
The operations of the Mining Pool are based on blockchain technology. A blockchain provides a wide spectrum of functionality for the Miners. By the way of establishment of each cryptocurrency and payment infrastructures, blockchain can be used, also for digital signing of the documents and/or for creation of the verifiable records of business transactions.
Each block contains a record of the recent transactions performed by the Miner (s), and a reference to the previous block.
The Block further contains a resolution of the specific mathematical task which is unique for each block. The new blocks cannot be submitted and accepted by blockchain network to the network without the correct answer – i.e., „validating process “.
The mathematical task in each block is complex and difficult-to-solve. Upon finding a valid solution, all subsequent blocks and the blockchain as a whole will confirm that the solution is correct and, thus, validate the transactions inside the solved block.
The difficulty level of the mathematical task is automatically adjusted by the blockchain to reach the targets. The goal of each task is to solve an average of 1 block per 15 seconds.
The details are specified in the respective consensus rules of a particular cryptocurrency as follows:
The blockchain network shall come to a consensus and will increase or decrease the difficulty of generating blocks automatically.
As each block contains a reference to the preceding block, the consolidation of all existing blocks will form a chain.
In case the chain has certain temporary splits, the peer-to-peer network is construed to resolve such splits within a short period of time, so that only one branch of the chain would survive.
Thus, the Miner may accept the “longest” chain of blocks as valid and validate the transaction.
Cryptocurrency nodes use the block chain to distinguish legitimate transactions from attempts to re-spend coins that have already been spent elsewhere.
The Miners shall be aware that the mining process is intentionally organized in a way to be resource-intensive, so that the number of blocks to be found each day/each period of time by the Miners will remain steady. Individual blocks must contain a proof of work to be considered valid.
Such proof of work is being verified by other nodes each time they receive a block. Ethereum, Ethereum Classic and Zilliqa use the “ethash” proof-of-work function. The primary purpose of mining is to allow nodes to reach a secure, tamper-resistant consensus as specified above in clause 2.7.