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