Understanding Mining Pools: Mining 101

Bitcoin mining pools are the backbone of Bitcoin’s security model in 2026, collectively producing over 95% of all new blocks on the network. Whether you are running a single Bitaxe on your desk or managing a cluster of NerdQaxe++ miners, understanding how mining pools work, how they pay you, and which ones align with your goals is essential to getting the most out of your hardware. For a foundational understanding of what Bitcoin mining is and how it works, start with our complete guide. To understand the difference between pool mining and going it alone, see our guide on what a solo miner is. This guide covers every major pool type, payout model, protocol, and selection factor so you can make an informed decision.

Table of Contents

1. What Is a Bitcoin Mining Pool?
2. How Do Bitcoin Mining Pools Work?
3. Bitcoin Mining Pool Payout Models Explained
4. Types of Bitcoin Mining Pools
5. What Are Solo Mining Pools (Lottery Mining)?
6. True Solo Mining vs. Lottery Mining: What Is the Difference?
7. Self-Hosted Mining Pools: Maximum Sovereignty
8. 2026 Bitcoin Mining Pool Comparison Table
9. Major Bitcoin Mining Pools in 2026
10. Decentralization-Focused Mining Pools
11. Security Risks of Mining Pool Centralization
12. What Is Stratum V2 and Why Does It Matter?
13. What Is the DATUM Protocol?
14. Which Mining Pool Is Best for Home Miners?
15. How to Connect Your Miner to a Pool
16. Real Block Wins: Proof That Small Miners Can Win
17. Why Your Pool Choice Matters for Bitcoin’s Future
18. How to Choose the Right Bitcoin Mining Pool
19. Key Mining Pool Terms

What Is a Bitcoin Mining Pool?

A Bitcoin mining pool is a coordinated group of miners who combine their computational power (hashrate) to increase the probability of finding a valid block and earning Bitcoin rewards. Instead of competing alone against the entire network, miners in a pool share the workload and split block rewards proportionally based on each miner’s contributed hashrate.

The simplest way to think about a mining pool is like a lottery syndicate. Everyone buys tickets together, and when one ticket hits, everyone gets a proportional share. You trade the chance of winning the full jackpot for smaller, more consistent payouts.

In 2026, Bitcoin’s total network hashrate exceeds 1,000 EH/s (exahashes per second), according to data on mempool.space. Mining difficulty has surpassed 144 trillion. Under these conditions, a single Bitaxe Gamma operating at 1.2 TH/s represents approximately 0.00000012% of the total network hashrate. Without pooling resources, the expected time for that miner to find a block solo would be measured in centuries.

Mining pools solve this by aggregating thousands of miners’ hashrate into a single, coordinated operation. The pool constructs block templates, distributes work to participants, validates submitted shares, and distributes rewards when blocks are found.

How Do Bitcoin Mining Pools Work?

Understanding the mechanics of mining pools helps you evaluate which pool is right for your setup. Here is what happens behind the scenes when you connect your miner to a pool:

1. Connection: Your miner connects to the pool’s stratum server using a protocol (Stratum V1 or Stratum V2). You provide your Bitcoin payout address and a worker name.
2. Work Distribution: The pool constructs a block template (a candidate block with pending transactions) and sends work assignments to your miner. Your miner’s job is to find a valid nonce that produces a hash below the target difficulty.
3. Share Submission: Your miner submits “shares,” which are proof that it performed computational work. Shares are hashes that meet a lower difficulty threshold set by the pool, even if they do not meet the full network difficulty required to solve a block.
4. Block Discovery: When any miner in the pool submits a share that also meets the full network difficulty, a valid block is found. The pool broadcasts this block to the Bitcoin network.
5. Reward Distribution: The pool distributes the 3.125 BTC block subsidy (post-April 2024 halving) plus transaction fees to all participants based on the pool’s payout model and each miner’s share contribution.

The pool operator takes a fee, typically between 0% and 3%, for maintaining infrastructure, constructing block templates, and distributing payments.

Bitcoin Mining Pool Payout Models Explained

The payout model a pool uses directly affects how much Bitcoin you earn, how often you get paid, and how much variance you experience. This is one of the most important factors in pool selection. Here is a breakdown of every major payout model used in 2026:

FPPS (Full Pay-Per-Share)

FPPS is the most common payout model for large mining pools in 2026. The pool pays you a fixed amount for every valid share you submit, regardless of whether the pool actually finds a block. The payment includes both the block subsidy and an estimated share of transaction fees.

• How it works: Each share earns a predetermined payout based on current network difficulty and the pool’s estimated transaction fee revenue.
• Variance: Very low. You receive predictable, consistent payouts.
• Risk: The pool operator absorbs the variance risk. If the pool goes through an unlucky streak and finds fewer blocks than expected, the pool still pays you the same rate.
• Fees: Typically 2% to 3% to compensate for the risk the operator takes.
• Best for: Miners who prioritize steady income and want predictable cash flow, regardless of pool luck.
• Pools using FPPS: Foundry USA, AntPool, F2Pool, Luxor, Binance Pool.

PPS+ (Pay-Per-Share Plus)

PPS+ is a hybrid model. The block subsidy portion is paid at a fixed per-share rate (like PPS), but the transaction fee portion is distributed based on a PPLNS-style calculation, meaning it varies with actual blocks found by the pool.

• How it works: Fixed subsidy payout per share, plus a variable transaction fee bonus when the pool finds blocks.
• Variance: Moderate. The subsidy portion is stable, but transaction fee income fluctuates.
• Fees: Typically 1.5% to 2.5%.
• Best for: Miners who want mostly predictable income but are willing to accept some variance for potentially higher total payouts during periods of high transaction fees.
• Pools using PPS+: ViaBTC, AntPool (as an option).

PPLNS (Pay-Per-Last-N-Shares)

PPLNS distributes rewards only when the pool actually finds a block. Rewards are split among miners based on the shares they contributed within a recent “window” of N shares. Miners who contributed more shares during the window leading up to the block discovery get a larger portion.

• How it works: When a block is found, the pool looks at the last N shares submitted. Miners are paid proportionally based on their share count within that window.
• Variance: High. Payouts depend on pool luck. Long stretches without a block mean no payout.
• Fees: Typically 0% to 2%, lower than FPPS because the operator does not absorb variance risk.
• Best for: Long-term, consistent miners who want lower fees and are comfortable with payout fluctuations. Penalizes pool-hoppers.
• Pools using PPLNS: AntPool (as an option), ViaBTC (as an option).

TIDES (Transparent Index of Distinct Extended Shares)

TIDES is OCEAN’s proprietary payout model. It tracks shares in a rolling window equivalent to the last 8 blocks worth of network difficulty. Unlike PPLNS or FPPS, TIDES calculates the exact pro rata portion of each miner’s contributed hashrate, including transaction fees. Every calculation is auditable on-chain.

• How it works: Shares are tracked in a precise rolling window. When a block is found, miners receive their exact proportional share directly in the coinbase transaction. No approximations.
• Variance: Moderate. Payouts depend on OCEAN finding blocks, but the 8-block rolling window smooths short-term variance.
• Fees: 2% standard, 1% for miners using DATUM.
• Best for: Miners who prioritize transparency, non-custodial payouts, and decentralization.
• Pools using TIDES: OCEAN (exclusively).

SOLO (Full Block Reward)

Solo payout means if your miner (or your specific worker) finds a valid block, you receive the entire 3.125 BTC block subsidy plus all transaction fees, minus a small service fee. No reward sharing with other miners.

• How it works: The pool provides infrastructure (stratum server, block template, network propagation) but does not split rewards. You get the full block reward if you find it.
• Variance: Extremely high. You earn nothing until you find a block, which could take days, years, or never.
• Fees: 0% to 2% service fee on found blocks.
• Best for: Miners who treat mining as a “Bitcoin lottery” and are comfortable with the extremely low probability of finding a block. Popular with Bitaxe and NerdQaxe home miners.
• Pools using SOLO: Solo CKPool, Public Pool, NodeRunners, Atlas Pool.

Types of Bitcoin Mining Pools

Mining pools can be categorized by their operational model, not just their payout method. Understanding these categories helps you align your pool choice with your goals.

1. Traditional Pooled Mining (Reward-Sharing Pools)

Traditional pools aggregate thousands of miners’ hashrate, find blocks frequently, and distribute rewards among all participants. This is the dominant model for industrial and large-scale miners. Examples include Foundry USA, AntPool, F2Pool, ViaBTC, and Binance Pool.

These pools find blocks regularly (large pools find multiple blocks per hour) and offer consistent payouts. The trade-off is that rewards are split among many participants, and the pool operator controls block template construction, deciding which transactions are included in blocks.

2. Solo Mining Pools (Lottery Mining Services)

Solo mining pools provide shared infrastructure (stratum servers, block propagation) without splitting rewards. They are not “pools” in the traditional sense because there is no reward sharing. If your miner finds a block, you keep the full reward minus a service fee.

These are popular with home miners running open-source hardware like the Bitaxe or NerdQaxe++. The appeal is the chance to win the full 3.125 BTC block reward (plus transaction fees), valued at approximately $300,000+ at current prices.

3. Non-Custodial Pools

Non-custodial pools never hold your Bitcoin. Rewards are paid directly from the coinbase transaction to your personal Bitcoin address. OCEAN is the only fully non-custodial mining pool in 2026. This eliminates counterparty risk: if the pool goes offline or faces legal issues, your Bitcoin was never in their custody.

4. Decentralized Mining Pools

Decentralized pools allow individual miners to construct their own block templates rather than accepting the pool’s template. This prevents the pool from censoring transactions or exercising undue control over block contents. OCEAN (via DATUM) and Braiins Pool (via Stratum V2) are leading this approach.

5. Hashrate Marketplace Mining

Platforms like NiceHash allow miners to rent out their hashrate to the highest bidder. The buyer directs the hashrate to a pool of their choice. Miners receive payment in Bitcoin regardless of which pool the hashrate is pointed at. This model can offer low-hashrate miners more frequent payouts through Lightning Network, but your hashrate goes wherever the buyer directs it, which may not align with decentralization values.

What Are Solo Mining Pools (Lottery Mining)?

Solo mining pools are one of the most misunderstood concepts in Bitcoin mining. Despite the name, they are not traditional pools. They are infrastructure services that allow individual miners to compete for full block rewards without needing to run their own Bitcoin full node or manage block propagation.

Here is how they differ from traditional pools:

• No reward splitting. If your miner finds a block, you keep the entire reward.
• No minimum hashrate. You can mine with a single Bitaxe Supra at 650 GH/s or a cluster of NerdQaxe++ units at 6+ TH/s each.
• No KYC. Most solo mining pools require only a Bitcoin payout address.
• Low or zero fees. Public Pool charges 0%. Solo CKPool charges 2%.

The appeal of lottery mining is that your miner hashes 24/7, submitting millions of attempts every second. Every single hash is a new ticket. Unlike a traditional lottery ticket that expires, your miner never stops playing.

The most popular solo mining pools for home miners in 2026 are:

Public Pool (web.public-pool.io)

Public Pool is one of the best options for solo miners due to its zero-fee payout structure. You keep 100% of the block reward if you find a block, with no service fee deducted. It was built specifically for the open-source mining community and is fully open-source on GitHub using Stratum V1. Public Pool can also be self-hosted on your own Start9 Server or Bitcoin node via Umbrel for maximum sovereignty. A home miner found block #920,440 in October 2025 using a NerdQaxe++ cluster (purchased from Solo Satoshi) on a self-hosted Public Pool instance, earning 3.141 BTC (~$347,000), per on-chain data verified on mempool.space.

• Fee: 0%
• Stratum URL: stratum+tcp://public-pool.io:21496

Solo CKPool (solo.ckpool.org)

Created by Dr. Con Kolivas and operating since 2014, Solo CKPool is one of the longest-running solo mining services. It uses Stratum V1, requires no account or KYC, and charges a 2% fee on found blocks. Over 22 solo miners found blocks through CKPool in 2025 alone, per CKPool statistics.

• Fee: 2%
• Stratum URL: stratum+tcp://solo.ckpool.org:3333

Braiins Solo (solo.braiins.com)

Braiins Solo is the solo mining option from the team behind Braiins Pool, the world’s first Bitcoin mining pool. It charges a 0.5% fee, one of the lowest in the solo mining space, and requires no registration. It uses the same reliable infrastructure as Braiins Pool with global server coverage.

• Fee: 0.5%
• Stratum URL: stratum+tcp://solo.stratum.braiins.com:3333

AtlasPool (atlaspool.io)

AtlasPool is a globally deployed solo mining pool announced out of 100+ edge locations worldwide for ultra-low latency connections. It charges a 1.5% fee on found blocks and uses the open-source ckpool stratum server. AtlasPool supports TLS encrypted connections and has a minimum difficulty of 2,000, meaning it requires hardware with at least 400+ GH/s (Bitaxe Supra or better). It is a strong option for solo miners who prioritize connection performance and uptime.

• Fee: 1.5%
• Stratum URL: stratum+tcp://solo.atlaspool.io:3333

NodeRunners (noderunners.network)

Community-focused solo mining pool popular with Bitaxe and NerdQaxe users. Zero fee. Stratum V1.

• Fee: 0%

For a deep dive on solo mining setup, see our complete guide: How to Solo Mine Bitcoin with Bitaxe Using UmbrelOS. For more on the lottery mining concept, read: Bitcoin Lottery Mining.

True Solo Mining vs. Lottery Mining: What Is the Difference?

These two terms are often used interchangeably, but they describe fundamentally different setups with different implications for Bitcoin’s decentralization.

True Solo Mining

True solo mining means running your own Bitcoin full node, constructing your own block templates, and submitting blocks directly to the Bitcoin network with no intermediary pool involved. Your miner connects to your local node, your node selects which transactions to include, and if your miner finds a valid block, it is broadcast from your node to the network.

This is the most decentralized way to mine Bitcoin. There is no pool operator, no stratum server you do not control, and no third party making decisions about your block contents. True solo mining contributes directly to Bitcoin’s censorship resistance because every true solo miner is an independent block template producer, reducing the concentration of that power among a handful of large pools.

The technical requirements for true solo mining include a full Bitcoin node (500+ GB of storage, reliable internet, and a machine that can stay online 24/7), mining hardware, and the configuration knowledge to connect them. Products like the Start9 Server One 2026 with StartOS make running a full node significantly easier with plug-and-play setup. Self-hosting Public Pool on your own node (covered in the next section) is a practical path to true solo mining with a user-friendly interface.

Lottery Mining (Solo Mining Pools)

Lottery mining uses a solo mining pool service (like Solo CKPool, Public Pool’s hosted version, AtlasPool, or Braiins Solo) that provides the stratum server and block template construction on your behalf. You still compete for the full block reward individually (no reward splitting), but the pool operator controls the block template and handles block propagation.

Lottery mining is easier to set up because you do not need to run your own node. You point your miner at the pool’s stratum URL, enter your Bitcoin address, and start hashing. The trade-off is that you are relying on the pool’s infrastructure and their block template choices.

Why the Distinction Matters

From a reward perspective, both true solo mining and lottery mining offer the same outcome: if your miner finds a block, you keep the full reward (minus any service fee). The critical difference is decentralization impact.

True solo mining adds a completely independent block template producer to the network. Your node decides which transactions go into your blocks. Lottery mining still funnels your hashrate through a pool’s block template, meaning the pool operator retains control over transaction selection for your work. While lottery mining pools like Public Pool and Solo CKPool are far better for decentralization than large pooled operations like Foundry or AntPool (because they do not aggregate hashrate for block template purposes), true solo mining remains the gold standard for supporting Bitcoin’s decentralized architecture.

For miners who want the full solo mining experience with maximum decentralization benefit, true solo mining through a self-hosted pool instance is the path. For miners who want the lottery reward structure with easier setup, a hosted solo mining pool is a practical and effective option.

Self-Hosted Mining Pools: Maximum Sovereignty

Self-hosting a mining pool means running pool software on your own hardware, connected to your own Bitcoin full node, in your own home or facility. This eliminates every third-party dependency from your mining operation. You construct your own block templates, you validate your own transactions, and you submit blocks directly to the Bitcoin network.

Why Self-Host?

• Zero fees: No pool operator takes a percentage of your block reward.
• Zero trust: You do not rely on any external party to behave honestly, stay online, or avoid censoring transactions.
• Full privacy: Your mining activity is not logged on a third-party server. No one knows your hashrate, your Bitcoin address, or your mining schedule except you.
• Maximum decentralization: You are an independent block template producer. Your node decides which transactions to include. This is the strongest contribution an individual miner can make to Bitcoin’s censorship resistance.
• Full block template control: You select which transactions go into blocks your miner works on. No pool can censor or prioritize transactions on your behalf.

How to Self-Host

The most accessible path to self-hosted solo mining is running Public Pool on your own Bitcoin node. Public Pool’s entire codebase is open-source on GitHub, meaning you can audit, modify, and run it yourself.

What you need:

• A home server or dedicated computer running a Bitcoin full node. The Start9 Server One 2026 with its Ryzen 7 6800H processor and StartOS is purpose-built for this use case.
• 500+ GB of storage for the full Bitcoin blockchain.
• A stable internet connection.
• Public Pool software (available on GitHub) or ckpool-solo software if you prefer the CKPool stack.
• Your mining hardware (Bitaxe, NerdQaxe++, or Canaan Avalon devices).

Platforms like Umbrel and StartOS offer one-click installation of Bitcoin Core, Bitcoin Knots, and Public Pool as services, making self-hosting accessible to non-technical users. Once installed, you point your miners at your local server’s IP address and start mining with zero fees, zero trust, and full sovereignty.

For miners running OCEAN’s DATUM protocol, self-hosting a Bitcoin full node enables DATUM Gateway, which lets you construct your own block templates while still participating in OCEAN’s pooled payout structure. This provides the decentralization benefit of self-hosted mining with the income smoothing of a pool.

2026 Bitcoin Mining Pool Comparison Table

*Foundry USA does not publish a public fee schedule. Terms are typically disclosed during onboarding and vary by miner scale, per Hashrate Index reporting.

Major Bitcoin Mining Pools in 2026

The following pools collectively control the majority of Bitcoin’s hashrate in 2026, according to data from Hashrate Index and mempool.space. Understanding their strengths and weaknesses helps you decide where to point your hashrate.

Foundry USA

Foundry USA is the largest Bitcoin mining pool in 2026, controlling approximately 30-32% of the total network hashrate, per Hashrate Index data. Backed by Digital Currency Group (DCG), Foundry focuses on institutional and large-scale mining operations across North America. The pool uses an FPPS payout model with competitive terms for qualifying miners.

Foundry requires KYC (Know Your Customer) verification and is designed for professional operations managing thousands of ASIC units. It offers SOC 2 compliance, enterprise-grade infrastructure, and integration with U.S. energy markets including ERCOT demand-response programs. For individual home miners running a Bitaxe or NerdQaxe, Foundry is generally not accessible or practical.

AntPool

AntPool, operated by Bitmain, controls approximately 14-20% of Bitcoin’s hashrate. As the pool affiliated with the world’s largest ASIC manufacturer, AntPool benefits from deep hardware integration and global server infrastructure. The pool offers multiple payout models (FPPS, PPS+, PPLNS), giving miners flexibility based on their risk tolerance.

AntPool charges 1.5% to 2.5% depending on the selected payout model. It supports Bitcoin plus several other proof-of-work cryptocurrencies. The pool is accessible to individual miners but is primarily designed for larger operations.

F2Pool

F2Pool (Discus Fish) has been operating since 2013, making it one of the longest-running mining pools. It controls approximately 10-14% of network hashrate and supports over 30 proof-of-work cryptocurrencies across multiple algorithms. F2Pool uses FPPS with a 2.5% fee and offers distributed servers worldwide for low-latency connections.

F2Pool is one of the few large pools that does not require KYC, making it accessible to individual miners. It provides detailed monitoring tools and supports daily payouts.

ViaBTC

ViaBTC controls approximately 10-11% of network hashrate and offers both PPS+ and PPLNS payout models. Founded in 2016, ViaBTC supports over 20 cryptocurrencies and provides features like auto-conversion and merged mining. Fees range from 1% to 4% depending on the payout model selected.

ViaBTC is headquartered in China with globally distributed servers. It is a solid choice for mid-scale miners who want flexibility in payout models and multi-coin support.

SpiderPool

SpiderPool has grown to approximately 5-6% of network hashrate in 2026. It is a newer entrant focused on competitive fees and global server infrastructure. Less documentation is available compared to established pools, but it has gained traction rapidly.

MARA Pool

MARA Pool is operated by Marathon Digital Holdings, one of the largest publicly traded Bitcoin mining companies. It controls approximately 5% of network hashrate and is primarily used for Marathon’s own mining operations, though it accepts external hashrate under certain conditions.

Decentralization-Focused Mining Pools

The concentration of hashrate among a small number of large pools is one of the most pressing challenges facing Bitcoin in 2026. According to Hashrate Index, just two pools (Foundry USA and AntPool) control nearly 50% of all Bitcoin hashrate. Add F2Pool and SpiderPool, and four entities direct block template construction for roughly 70% of every Bitcoin block.

This matters because pools that construct block templates decide which transactions get included in blocks. They can, in theory, censor transactions, comply with government directives to exclude certain addresses, or engage in transaction ordering manipulation. The following pools are specifically designed to counter this centralization trend.

OCEAN

OCEAN is a non-custodial Bitcoin mining pool launched in 2023 by longtime Bitcoin Core developer Luke Dashjr, with backing from Jack Dorsey. OCEAN represents a fundamentally different approach to mining pool architecture.

Key features:

• Non-custodial payouts: Your Bitcoin goes directly from the block’s coinbase transaction to your personal wallet. OCEAN never holds your funds. Zero counterparty risk.
• TIDES payout model: Precise, transparent, auditable share tracking in a rolling 8-block window. No approximations.
• DATUM protocol: Allows miners to construct their own block templates using their own Bitcoin full node, restoring transaction selection power to individual miners.
• No KYC: Connect with a Bitcoin address. No account needed.
• Lightning payouts: BOLT12 Lightning payouts available for smaller, more frequent payments.
• Fee: 2% standard, 1% for miners using DATUM (50% discount for supporting decentralization).
• Hashrate: Approximately 13 EH/s with 2,700+ active participants, per ocean.xyz dashboard data.

In April 2025, Tether announced it would deploy existing and future hashrate on OCEAN using the DATUM Gateway, per tether.io. This was a significant endorsement of OCEAN’s decentralization-first architecture.

OCEAN is an excellent choice for home miners running Bitaxe or NerdQaxe devices who want regular pooled payouts while supporting Bitcoin’s decentralization. Your hashrate contributes to reducing the dominance of centralized pools.

Stratum URL: stratum+tcp://mine.ocean.xyz:3334

Braiins Pool (formerly Slush Pool)

Braiins Pool is the world’s first Bitcoin mining pool, originally launched in 2010 as Slush Pool. It pioneered Stratum V2, the next-generation mining protocol that brings encryption, efficiency, and miner-side block template construction to pooled mining.

Key features:

• Stratum V2 support: Full implementation. Braiins Pool is 100% Stratum V2 capable, per braiins.com documentation.
• FPPS payout: 0% pool fee when using Braiins OS firmware. 2.5% fee otherwise.
• Lightning payouts: Available for faster, lower-minimum withdrawals.
• Transparency: Detailed, auditable statistics and long operational history.
• No KYC required.

Braiins Pool controls approximately 2-3% of network hashrate but punches above its weight in terms of technical innovation and community trust. It is a strong choice for miners who want a proven, reliable pool with cutting-edge protocol support.

Security Risks of Mining Pool Centralization

Mining pool centralization is not a theoretical concern. Independent research has revealed that the actual concentration of block template control is significantly worse than hashrate distribution charts suggest.

The “Pool of Pools” Problem

In April 2024, pseudonymous Bitcoin developer 0xB10C published research analyzing the merkle branches that mining pools send to miners as part of stratum job assignments. The findings were alarming: BTC.com Pool, Binance Pool, Poolin, EMCD, and Rawpool were all sending block templates with identical transaction ordering and prioritization as AntPool, the pool operated by Bitmain, the world’s largest ASIC manufacturer.

Researcher Mononaut corroborated these findings by tracing coinbase rewards from multiple pools (AntPool, F2Pool, Binance Pool, Braiins, BTC.com, SECPOOL, Poolin, UltimusPool, 1THash, and Luxor) and identified suspicious levels of cooperation in allocating coinbase rewards to a shared, possibly AntPool-controlled, custodian.

In a follow-up analysis published in September 2024, 0xB10C applied a weighted similarity score across 24 pools and found that Poolin and BTC.com had 99% and 98% template similarity to AntPool respectively. Ultimus, Braiins, Binance Pool, and SpiderPool all showed over 80% correlation.

How This Happens: The FPPS Insurance Model

The mechanism behind this consolidation is economic. FPPS (Full Pay-Per-Share) pools must maintain large Bitcoin treasuries to pay miners a fixed rate regardless of pool luck. Smaller pools often lack the capital reserves to absorb variance during unlucky streaks. According to research discussed by Bitcoin developer Matt Corallo on the TFTC podcast, these pools entered into FPPS insurance arrangements with Bitmain/AntPool. In exchange for Bitmain insuring against bad pool luck, the pools agreed to use Bitmain’s block templates and transaction prioritization, and to route mining rewards through Bitmain’s custodial infrastructure.

The result: pools that appear independent on hashrate distribution charts are functionally proxies for AntPool. They relay AntPool’s mining jobs but change the coinbase tags and addresses to their own, making hashrate estimates based on block attribution inaccurate. AntPool’s actual influence over block template construction is significantly underreported.

What This Means for Bitcoin

According to 0xB10C’s Mining Centralization Index (updated April 2025), AntPool and its associated proxy pools (“AntPool & friends”) controlled approximately 40% of network hashrate throughout 2024. Combined with Foundry USA at approximately 30%, two entities effectively directed block template construction for roughly 70% of all Bitcoin blocks. In a worst-case interpretation, a single entity (Bitmain, through AntPool and its proxies) may have approached or crossed the 50% threshold for block template control.

This concentration creates several concrete risks:

• Transaction censorship: If a single entity controls a majority of block template construction, it can delay or exclude specific transactions from confirmation. This directly undermines Bitcoin’s core value proposition as censorship-resistant money.
• Regulatory pressure point: Government entities can exert pressure on a single corporate target (Bitmain) rather than thousands of independent miners. 0xB10C’s research documented instances where pools sharing AntPool’s templates failed to mine transactions spending from OFAC-sanctioned addresses.
• Single point of failure: If AntPool’s template infrastructure experiences an outage or bug, every proxy pool relying on those templates is simultaneously affected.
• Invisible centralization: Unlike a single pool openly holding 51% of hashrate (which would trigger immediate alarm), the proxy pool model obscures true centralization behind the appearance of competition.

How Individual Miners Can Counter This

The most direct countermeasure is supporting pools that construct their own independent block templates and do not participate in proxy pool arrangements:

• OCEAN: Constructs independent templates. DATUM protocol allows miners to build their own.
• Solo mining pools (Public Pool, Solo CKPool, AtlasPool, Braiins Solo): Solo pools do not aggregate hashrate for template construction in the same way pooled operations do.
• Self-hosted mining: Running your own node and pool instance makes you a fully independent block template producer.
• Stratum V2 adoption: Supporting pools with Stratum V2 job negotiation returns template control to individual miners, regardless of which pool they use.

The open-source home mining community, using devices like the Bitaxe and NerdQaxe++, plays a meaningful role in this fight. Every hash pointed at an independent pool or self-hosted node is a hash that Bitmain does not control. For more on the open-source mining revolution and its role in protecting Bitcoin, read: Bitcoin Mining Decentralization: Navigating Challenges and Innovations.

What Is Stratum V2 and Why Does It Matter?

Stratum V2 is the next-generation communication protocol between miners and mining pools, developed by Braiins in collaboration with Bitcoin developer Matt Corallo. It replaces Stratum V1, which has powered mining since 2012 but has significant limitations.

Stratum V1 problems:

• No encryption: All communication is plaintext. Vulnerable to man-in-the-middle attacks that can hijack hashrate by swapping pool credentials.
• Centralized block templates: The pool decides which transactions go in every block. Miners are passive hashers with no say in block contents.
• Bandwidth waste: JSON text-based format uses 250-400 bytes per typical message.

Stratum V2 improvements:

• Encryption: All traffic between miner and pool is encrypted, preventing ISPs or attackers from observing or manipulating mining data.
• Bandwidth efficiency: Binary encoding reduces bandwidth usage by approximately 60% for pools and 70% for miners, per stratumprotocol.org specifications. This is especially important for miners in bandwidth-constrained environments.
• Job negotiation (block template construction): Miners can build their own block templates and select which transactions to include. This shifts power from pools back to individual miners, directly improving Bitcoin’s censorship resistance.
• Hashrate hijacking prevention: Authentication prevents attackers from redirecting your hashrate to a different pool.

As of early 2026, approximately 15-20% of network hashrate uses Stratum V2, per industry estimates. Braiins Pool has full V2 support. Foundry USA is testing V2. Major ASIC manufacturers are shipping V2-compatible firmware on newer models. By the end of 2026, V2 is projected to become the default for new ASIC shipments.

For home miners using Bitaxe hardware running AxeOS firmware, Stratum V1 remains the standard connection method. AxeOS connects to any V1-compatible pool. As Stratum V2 adoption grows, firmware updates may add V2 support for open-source hardware.

For a deeper look at how Stratum V2 and DATUM relate to decentralization, read: DATUM and Stratum V2: Miners Building Their Own Blocks.

What Is the DATUM Protocol?

DATUM (Decentralized Alternative Templates for Universal Mining) is OCEAN’s implementation of miner-side block template construction. While Stratum V2 offers job negotiation as an optional feature, DATUM makes it a core part of the mining workflow.

How DATUM works:

1. The miner runs a Bitcoin full node locally.
2. DATUM Gateway software constructs block templates using the miner’s own node.
3. The miner selects which transactions to include in the block template.
4. The miner submits work to OCEAN based on their self-constructed template.
5. If a block is found, it contains the transactions the miner chose, not whatever OCEAN’s default template contained.

Why DATUM matters:

• Traditional pools control which transactions appear in approximately 70% of all Bitcoin blocks. DATUM returns this power to individual miners.
• If a government pressures a pool to censor certain transactions, DATUM miners can simply include those transactions anyway.
• Miners using DATUM receive a 50% fee discount on OCEAN (1% instead of 2%).

According to ocean.xyz dashboard data, OCEAN has found over 12,400 total blocks, with 581 of those constructed by miners using DATUM. Running a Start9 Server One 2026 with a Bitcoin full node provides the infrastructure needed to run DATUM Gateway and construct your own block templates.

Which Mining Pool Is Best for Home Miners?

The best pool depends on your hardware, your goals, and your philosophy. Here is a decision framework for home miners using open-source hardware:

If You Want the Bitcoin Lottery Experience (Solo Mining)

• Pool: Solo CKPool or Public Pool.
• Hardware: Bitaxe Gamma 602 (1.2 TH/s, ~$98), Bitaxe Duo 650 (1.63 TH/s, ~$130), or NerdQaxe++ Rev 6.1 (6+ TH/s, ~$382).
• Why: Chance at the full 3.125 BTC block reward (~$300,000+). Cost of entry as low as ~$2/month in electricity for a Bitaxe Gamma at $0.16/kWh.
• Trade-off: You may never find a block. But every hash is a new chance.

If You Want Regular Payouts While Supporting Decentralization

• Pool: OCEAN or Braiins Pool.
• Hardware: Any Bitcoin miner, from a single Bitaxe to a NerdQaxe++ cluster.
• Why: Earn proportional pooled payouts while your hashrate supports smaller, decentralization-focused pools instead of feeding Foundry or AntPool. OCEAN’s non-custodial model means your Bitcoin is never held by a third party.
• Trade-off: Slightly more payout variance than large FPPS pools, and payouts may be very small for low-hashrate devices.

If You Want Maximum Sovereignty

• Pool: Self-hosted Public Pool on your own Start9 Server or Umbrel node.
• Hardware: NerdQaxe++ Rev 6.1 cluster + home server running a Bitcoin full node.
• Why: Zero fees. Zero trust. You construct your own block templates, run your own node, and submit directly to the network. This is the most decentralized way to mine Bitcoin.
• Trade-off: Requires technical setup, a full Bitcoin node (500+ GB storage), and reliable internet.

If You Want Predictable Income (Industrial Focus)

• Pool: Foundry USA, F2Pool, or AntPool.
• Hardware: Industrial ASIC miners (Antminer S21, WhatsMiner M60, etc.).
• Why: FPPS payouts smooth income. Large pools find blocks constantly, so you get paid daily or even more frequently.
• Trade-off: Higher fees, potential KYC requirements, and your hashrate contributes to centralization.

How to Connect Your Miner to a Pool

Connecting a Bitaxe or NerdQaxe to a mining pool takes less than five minutes. Here is the general process:

1. Power on your miner and connect it to your Wi-Fi network (2.4 GHz for Bitaxe devices running AxeOS).
2. Access the AxeOS web interface by entering your miner’s local IP address in a browser.
3. Enter the pool’s stratum URL in the “Stratum URL” or “Pool URL” field.
4. Enter your Bitcoin payout address as the username. For most pools, the format is: YOUR_BTC_ADDRESS.WORKER_NAME
5. Set the password to “x” or leave it blank (most pools do not require a password).
6. Save and restart. Your miner will begin submitting shares to the pool within seconds.

Common stratum URLs for home miners:

• Solo CKPool: stratum+tcp://solo.ckpool.org:3333
• Public Pool: stratum+tcp://public-pool.io:21496
• OCEAN: stratum+tcp://mine.ocean.xyz:3334
• Braiins Pool: stratum+tcp://stratum.braiins.com:3333
• NodeRunners: Check noderunners.network for current URLs

For step-by-step setup guides with screenshots, see: How to Set Up Your Bitaxe and How to Set Up NerdQaxe in 5 Minutes.

Real Block Wins: Proof That Small Miners Can Win

Solo Satoshi customers and open-source home miners have documented over $1 million in aggregate Bitcoin block rewards. These are real, on-chain verified block finds from open-source home mining hardware:

• Block #887,212 (March 10, 2025): A solo miner using a single Bitaxe at just ~480 GH/s (0.48 TH/s) found a full Bitcoin block, earning 3.125 BTC (~$200,000). This was an early Bitaxe solo block find, verified on-chain via mempool.space.
• Block #920,440 (October 23, 2025): A miner running a NerdQaxe++ Rev 6 cluster (purchased from Solo Satoshi) at ~6 TH/s on a self-hosted Public Pool instance (via Umbrel) earned 3.141 BTC (~$347,000). The customer used this payout to pay off their home mortgage. This remains the largest confirmed open-source home miner payout, verified on mempool.space.
• Block #924,569 (November 21, 2025): Six Bitaxe Gamma 602 workers running on CKPool with a combined ~6.6 TH/s found a block at the best-ever difficulty of 221.39 trillion, earning 3.08349744 BTC (~$310,000). Payout confirmed on-chain to address 3K99ATGytaz1Ns2xNiJfjQbECz5ewnCt8M.
• Block #930,xxx (January 2026, est.): A mix of Bitaxe and NerdQaxe devices across various pools, estimated reward over $100,000.

The interval between documented customer block finds has been shrinking: 229 days, then 179, then 52, then 25 days. This trend reflects growing open-source miner adoption and increasing total hashrate pointed at solo mining services.

For the full breakdown with on-chain verification links, read: Has Bitaxe Found a Block? Next Block Is Closer Than You Think.

Why Your Pool Choice Matters for Bitcoin’s Future

Decentralization is not an abstract ideal. It is a measurable property of the Bitcoin network that directly affects censorship resistance, security, and long-term viability. Your pool choice has a concrete impact.

The centralization problem in numbers (early 2026, per Hashrate Index):

• Foundry USA + AntPool = ~50% of total network hashrate.
• Top 4 pools = ~70% of all block template construction.
• These pools decide which transactions are included in the majority of Bitcoin blocks.

What centralization enables:

• Transaction censorship: If a government requires Foundry USA to exclude certain transactions, those transactions may wait hours or days for confirmation by a smaller pool.
• Regulatory capture: Pools with KYC requirements can be compelled to freeze payouts or report miners.
• 51% attack risk: While unlikely due to economic incentives, the mathematical possibility exists when too much hashrate is concentrated.

How you can help:

• Point your miner at OCEAN, Braiins Pool, Public Pool, Solo CKPool, or NodeRunners instead of Foundry or AntPool.
• Run your own Bitcoin node with a Start9 Server One 2026 and self-host Public Pool for zero-fee, fully sovereign solo mining.
• Use Stratum V2 or DATUM where available to construct your own block templates and remove pool-level transaction control.

Every hash pointed at a decentralized pool is a vote for Bitcoin’s long-term health. Even a single Bitaxe at 1.2 TH/s on Public Pool is one more independent miner that Foundry does not control. The open-source mining revolution is not just about hardware. It is about who controls the network.

How to Choose the Right Bitcoin Mining Pool

Selecting the right mining pool comes down to evaluating several key factors against your personal goals. Here is a systematic checklist:

1. What Are Your Goals?

• Consistent income: Choose a large FPPS pool (Foundry, F2Pool, AntPool).
• Bitcoin lottery (full block reward): Choose Solo CKPool or Public Pool.
• Support decentralization with regular payouts: Choose OCEAN or Braiins Pool.
• Maximum sovereignty: Self-host Public Pool on your own Bitcoin node.

2. What Is the Fee Structure?

Fees range from 0% (Public Pool) to 3%+ (some FPPS pools). But lower fees do not always mean higher net payouts. FPPS pools absorb variance risk, which has real value. Compare net payout per terahash over time, not just the headline fee percentage.

3. What Payout Model Does the Pool Use?

FPPS gives the most predictable income. PPLNS rewards long-term miners with lower fees. TIDES (OCEAN) offers transparency and non-custodial payouts. SOLO gives the full jackpot or nothing. Match the model to your risk tolerance.

4. Does the Pool Require KYC?

Foundry USA and Luxor require identity verification. Most other pools (OCEAN, Braiins, F2Pool, Solo CKPool, Public Pool) require only a Bitcoin address. For privacy-conscious miners, no-KYC pools are preferable.

5. Is the Pool Non-Custodial?

OCEAN is the only major non-custodial pool. Solo CKPool and Public Pool are also non-custodial by nature (they never hold your funds). Custodial pools hold your balance until withdrawal, creating counterparty risk.

6. Does the Pool Support Stratum V2 or DATUM?

Braiins Pool has full Stratum V2 support. OCEAN uses DATUM. Both allow miner-side block template construction. If censorship resistance matters to you, prioritize pools with these protocol options.

7. What Is the Pool’s Hashrate Share?

Larger pools find blocks more frequently, smoothing payouts. But the Bitcoin community benefits when hashrate is distributed across many pools. Consider splitting your hashrate: point some devices at a large FPPS pool for income stability and others at OCEAN or Public Pool for decentralization.

8. Does the Pool Support Your Hardware?

All pools listed in this guide support SHA-256 ASIC miners, including Bitaxe, NerdQaxe, and Canaan Avalon devices. Verify the pool’s stratum URL and any minimum hashrate requirements before connecting.

Use our Bitcoin Mining Profitability Calculator to model expected returns based on your hardware, electricity cost, and pool fee.

Key Mining Pool Terms

• Hashrate: The computational power your miner contributes, measured in TH/s (terahashes per second). A Bitaxe Gamma 602 produces 1.2 TH/s. A NerdQaxe++ Rev 6.1 produces 6+ TH/s.
• Shares: Proof-of-work units submitted by your miner to the pool. They demonstrate your miner is performing valid computational work.
• Difficulty: A network-wide measure of how hard it is to find a valid block. In 2026, difficulty exceeds 144 trillion, per mempool.space data.
• Block Subsidy: The base Bitcoin reward for finding a valid block, currently 3.125 BTC after the April 2024 halving.
• Block Template: The candidate block a miner works on, containing pending transactions. In traditional pools, the pool constructs this. With Stratum V2/DATUM, miners can construct their own.
• Stratum Protocol: The communication protocol between miners and pools. Stratum V1 has been the standard since 2012. Stratum V2 adds encryption, efficiency, and miner-side block template construction.
• Coinbase Transaction: The first transaction in every Bitcoin block, which creates new Bitcoin and distributes the block reward. Non-custodial pools like OCEAN pay miners directly in this transaction.
• Nonce: A number your miner iterates through to find a valid block hash. Each nonce attempt is one “ticket” in the mining lottery.

Final Thoughts

Mining pools are the infrastructure layer that makes Bitcoin mining accessible and economically viable for individuals and small-scale miners. Whether you choose the predictable income of FPPS pools, the decentralization benefits of OCEAN, or the full-reward thrill of lottery mining on Solo CKPool, understanding your options is essential.

The most important takeaway: your pool choice is more than a payout decision. It is a vote on how Bitcoin works. Every terahash pointed at a decentralized, censorship-resistant pool strengthens the network for everyone. With open-source mining hardware from Solo Satoshi and the right pool selection, you can participate in securing Bitcoin while maintaining sovereignty over your mining operation.

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