This system mirrors the operational dynamics of centralized pools where miners are assigned varying difficulty targets based on their individual hash rates. As miners' setups evolve, with machines being added or removed, the difficulty targets are dynamically adjusted by the stratum server, ensuring that each miner's contribution is accurately reflected in the pool's performance metrics.

Radpool distinguishes itself by replacing the singular centralized entity typical of traditional mining pools with a consortium of Mining Service Providers (MSPs). These MSPs collectively maintain a robust database, resistant to byzantine faults, and employ Threshold Signature Schemes (TSS) for signing Decentralized Ledger Contracts (DLC) payouts. Moreover, they are responsible for generating independent block templates. Despite this shift from a centralized to a decentralized framework, the core principle of difficulty adjustment remains unchanged, underscoring Radpool's commitment to maintaining operational familiarity for miners while enhancing security and autonomy through decentralization.

This model ensures that shares contributed by miners, irrespective of their differing difficulty levels, are normalized for Pay-Per-Last-N-Shares (PPLNS) computation. This strategy is a staple in centralized pools and is key to ensuring fair reward distribution among participants based on their contributions. Radpool's integration of well-established protocols into its decentralized structure aims to simplify the transition for miners and MSPs alike, promising an efficient, secure, and equitable mining ecosystem.