Pool Mining - it is where miners were to connect and congregate their hash rate to mine for coins. Such sites that is hosting the pool usually have charges. eg 1% of your share of coins. How it works is when a block is found the number of share will be determine by the hash rate you are contributing into the pool.
Simple Explanation:
block found (1000 coins)
user 1 : 10 mh/s
user 2 : 5 mh/s
user 3 : 3 mh/s
user 4 : 2 mh/s
pools charges a 1% fee.
Users will get :( (1000/total hash rate)*own hash rate)-1% pool fee
User 1 = 495 coins
User 2 = 247.5 coins
User 3 = 297 coins
User 4 = 198 coins
There are also other factors to consider, like the rejection rates and Hardware errors. even you have super good hashrate but your rejection rate is high or high hardware error, the number of shares you will receive will also be affected.
Risk invovled: if the pool gets hacked and you you did not withdraw your mined coins, you might lose them which has happened before.
P2P Mining
A easier explanation of P2P mining will be more detailed explained in this link P2P Mining, personally P2P mining as discussed with my buddy and i, is the way to go. As we whatever coins we mined is directed into our own wallet without going through a pool which in my option safer. That is of course, you did encrypt your wallet and did a backup just in case your Harddisk were to fail on you.
Solo Mining
Solo mining works the same as P2P just instead of many people connecting to each other to mine, you are all alone. Mining alone give you full block all to your self, but the chances of finding a full block depends on the amount of people mining the coin. The harder the difficulty the harder it is to solo mine, sometime if your are lucky enough within an hour you will find a few blocks, but if your are not you will go hungry for hours without coins.
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