How do mining and mining pools work?

Mining is a process of verifying and adding new transactions to a blockchain. Miners are rewarded with a certain amount of coins or tokens when they successfully validate a transaction, which is referred to as mining rewards.

In a mining pool, miners join forces to pool their resources and share their computing power, thereby increasing their efficiency and the amount of newly mined coins they receive as rewards. When a miner successfully validates a transaction and earns a reward, the reward is shared among the members of the pool in proportion to each member’s contribution to the overall mining power of the pool.