What is cryptocurrency mining
What is cryptocurrency mining
Mining is the process of processing transactions in a digital currency system, in which records of current crypto transactions (blocks) are added to information about past transactions (blockchain). This happens when the miner closes the block. To do this, he uses powerful equipment to perform special calculations to solve mathematical problems. In case of a successful decision, the block is closed, and the miner receives a reward in cryptocurrency. Get free NFTs and exchange them for real money Thanks to mining, the entire operation of the network is ensured: confirmation of transactions, protection against entering false information and duplication of transactions, protection against attacks, ensuring decentralization of the network.
How Cryptocurrency Mining Works
To understand how cryptocurrencies are mined, you first need to understand what a mining algorithm is. As you know, each digital currency is created using a specific encryption algorithm. It is he who decrypts the mining equipment, providing processing of transactions in the network and bringing the miner a reward. Play and earn real money without deposit
How to mine cryptocurrency?
This will require powerful equipment, including:
Video cards (GPU) - the more there are and the more powerful they are, the more efficient mining will be. Video cards are not suitable for mining Bitcoin and Litecoin - this requires special ASIC miners. The performance of mining equipment is denoted by the term "hashrate". Get FREE Bitcoins every hour for free
A powerful computer with the maximum possible number of slots for video cards. You can install special operating systems for cryptocurrency mining (for example, ethOS) or professional 64-bit Windows 10 on it. Remember that farms work quite loudly and require a powerful cooling system and power supplies.
Internet connection via cable or Wi-Fi with good ping.
You also need to register a wallet where the mined coins will be stored. We have previously written about how to choose a cryptocurrency wallet.
It is worth noting that some types of mining do not require special equipment. It:
Browser mining - coins are mined through the execution of a special JavaScript script. Most of these scripts are created for fraudulent purposes.
Hidden mining is the extraction of cryptocurrency due to the power of other people's computers. It is carried out by infecting them with malware. Read the article for expert advice on how to deal with mining malware.
Mining on phones and laptops is an inefficient way to mine coins even on the most powerful models. Allows you to better understand what cryptocurrency mining is.
Cloud mining is the extraction of cryptocurrency remotely, when the user pays the company for renting its mining equipment.
