mining pools – What are the steps to create a block template?

Gathering Information:

Latest Blockchain Data: The pool operator retrieves the latest block header information like the previous block’s hash, timestamp, and difficulty level.
Transactions: The pool collects pending transactions from the mempool (memory pool), prioritizing them based on fees and network requirements.
Mining Reward: The pool calculates the block reward, including the base subsidy and transaction fees.
2. Building the Block Template:

Merkle Root: The pool hashes all included transactions to create a Merkle root, verifying their authenticity.
Coinbase Transaction: The pool creates a special “coinbase” transaction claiming the block reward, which includes their fees and any protocol-specific data.
Nonce and Difficulty Adjustment: The pool sets an initial nonce (number used for proof-of-work) and adjusts the difficulty based on network hashrate, ensuring consistent block creation time.
Serialization: The entire block template (including header, transactions, and signatures) is converted into a serialized data format.
3. Broadcasting the Block Template:

Stratum Protocol: The pool transmits the serialized block template to connected miners using the Stratum mining protocol.
Mining Competition: Miners use the template to find a valid nonce satisfying the proof-of-work difficulty, aiming to be the first to solve the puzzle and claim the block reward.