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You are compensated for each valid share that you contribute. Each share is worth a set amount of cryptocurrency that may be mined. Regardless of whether the pool detects a block or not, miners will always get compensated using the PPS payment method. In other words, miners sell their hashrate to a mining pool for a fixed income. Each mining pool is in charge of its revenues and losses.
It is a software that acts like an intermediary or a bridge that lets two applications talk to each other. It is the one that lets applications, data and devices interact.