Independent mining and staking activities demand a lot of resources. One either needs to purchase expensive mining equipment or pledge substantial amounts of crypto toward the blockchain.
Either way, the cost of involvement can be very high. Pooling resources allows aspirants to participate in the staking/mining process and earn block rewards without singlehandedly dedicating all necessary resources.
Sure, the rewards may be lower, but they are usually constant and predictable, which is not the case for solo staking or mining.
Check out the illustration below for a better understanding:
First Published: Jul 5, 2022 8:21 AM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha elections 2024: From Wayanad to Shivamogga, key battles in the second phase
Apr 25, 2024 2:01 PM
EC probes allegations of MCC violation by Modi, Rahul; seeks response by April 29
Apr 25, 2024 1:32 PM
LS polls phase 2: Rahul Gandhi, Shashi Tharoor in fray; Hema Malini, Om Birla eyeing hat-trick
Apr 25, 2024 12:19 PM
UP constituencies to witness three-cornered fight in second phase tomorrow
Apr 25, 2024 10:47 AM