Bitcoin is a new kind of digital currency that is admitted to be a «gold standard» of digital world. Traditional money will eventually be replaced with bitcoin, just like land mail has been replaced with e-mail. Bitcoin is based both on common and new technologies. Bitcoin is a combination of:
As a result, Bitcoin system is a strong, flexible and stable community of equal participants.
Every time 25 BTC are earned as a result of cooperative computations of all mining pool participants, these bitcoins are distributed between participants according to their contribution. Let's describe the process of earning bitcoins that is called, as you could guess, «mining».
Pool server sends «block» to every participant. «Block» is a cryptographic task that should be solved by participant's CPU and graphics card. Every time any solution for this task is found (no matter if it is correct or not — it just should «look like» a solution), it is sent to the pool server. Pool server counts how many possible solutions («shares») you've sent. Finally, one of the solutions will possibly match strong requirements of Bitcoin algorithms. Mining pool will be granted with 25 BTC for each correct solution.
So, when any user of the mining pool sends a «good» solution of the block, the pool will start distribution of earned bitcoins among participants. All users of the pool who sent some possible solutions for the block will receive a reward that is calculated according to the number of shares sent. The more time your computer mines, the more bitcoins you get.
Bitcoins are emitted with 25 BTC payment for the person that found a correct solution of some block. There is a really strong competition for gaining the emission payment. If you are mining your bitcoins independently, it may take a very long time for you to earn 25 BTC. Mining pool allows people to cooperate with others participants and aggregate computational resources. Participating in the mining pool gives you an opportunity to accumulate bitcoins gradually, but regularly. If your computer and graphics card are not very powerful, pooled mining is the only way for you to earn bitcoins.
Mining pool pays for every solution you send. You should not fear that mining pool will steal your reward. We can assure you that this is not our business.
First of all we created the 50BTC.com mining pool because the difficulty of generating new blocks has significantly increased and because we want to reward your hardware investment. The most powerful graphic card, presented on market, can't ensure you receive your honored 25 BTC. Regular payments from mining pool allow all participants to earn bitcoins and reduce the investment risks.