Description: An incentive pool is a collective fund from which rewards are distributed in a proof-of-work (PoW) system. In this context, miners participating in the validation of transactions and the creation of new blocks in a blockchain can join a pool to combine their computational resources. This increases their chances of receiving rewards, as the difficulty of mining blocks on networks like Bitcoin can be extremely high. By pooling together, miners can share both the cost of infrastructure and the rewards obtained, making mining more accessible for those who do not have the necessary hardware to compete individually. Incentive pools typically operate under different reward distribution models, such as the PPLNS (Pay Per Last N Shares) model or the PPS (Pay Per Share) model, each with its own characteristics and benefits. The relevance of these pools lies in their ability to democratize access to mining, allowing more people to participate in the transaction validation process and contribute to the security of various blockchain networks. Additionally, they encourage collaboration among miners, which can result in greater stability and efficiency in the cryptocurrency ecosystem.
