Mining pool is heard of in connection with modern day cryptocurrencies. It is pooling of resources done by miners. They are going to share their power across a network so as to split rewards equally, depending on the amount of work that they have done to solve the problem. Every member of such a mining pool will be awarded a “share” when they can come up with proof of work to show that they have successfully solved a problem.
Mining pool actually came about when it started to get hard o for miners to mine and it was taking a really long time for them to produce a block. The only way out of this predicament was to opt for pooling their resources. This would help them generate blocks faster. They would also be able to get rewards continuously in the process instead of randomly as was the case earlier. So, when there are many lottery tickets and you simply have one, your chances of winning it is one in that thousand. However, when you can hold nearly 100 tickets, your chances improve dramatically. The same philosophy was used in the mining pool. It meant that when you cannot afford to buy many tickets together, you could always get together with 99 more people to form a syndicate. This meant that every time this syndicate would win rewards, it would be spilled. So, while cash inflow may be limited, volatility of returns becomes much lower.