What is Cryptocurrency
Cryptocurrency is a virtual or digital asset used as the medium of exchange which uses cryptography to secure financial transactions, to verify the transfer of assets and to control the creation of additional units. The strong cryptography that is used in cryptocurrency makes it hard for anyone to counterfeit it. Others take cryptocurrency as a digital, virtual or alternative currency which is used in different online activities like trading. Furthermore, it uses a decentralized control in as much as it is widely known for its organic nature which means that it is not controlled by any central authority like the government. This feature makes cryptocurrency different from the currencies in different parts of the world.
What is mining
Mining refers to the process of solving mathematical problems by miners. The miners’ bundle transactions together. After which, they will solve the mathematical problem. At times, these mathematical problems are quite difficult, thus powerful or supercomputers are needed. Miners earn new coins or free transaction fees from solving these mathematical puzzles.
Furthermore, it is the miners’ responsibility to ensure that transactions made are valid by seeing into it that there are enough coins in a person’s account who is trying to make a transaction. Anyone can view the blockchain which means that anyone can view any transaction too. A trader can have as many wallets as he wants.
What is cryptocurrency mining
Cryptocurrency Mining or simply crypto mining is the process by which new coins are added to the block by solving complex mathematical problems. People who solve these problems are called miners. These miners are rewarded for every successful problem solved. For every cryptocurrency transaction made, it is the responsibility of the miner to ensure that the information is authentic. He is also responsible in updating the blockchain with the transaction that has been made. In other words, cryptocurrency mining is the process in which new cryptocurrency is made.
How it works
In order to successfully complete cryptocurrency mining, there must first be a great number of resources in the computer and a special program. This special program is needed as it allows the miner to compete with other miners in solving the complex mathematical problem. A unique code identifies the data and the computers used by miners are set to zero which lessens the value of the target. The reward is given to the first miner who solves the problem.
What are the requirements when mining
- A password protected coin wallet where earnings are stored
- A mining software
- Online mining pool membership
- Online currency exchange membership
- A reliable and strong internet connection
- A computer that is specially designed for mining purposes
Generally, mining will give you money, but it won’t make you rich. Cryptominers should keep in mind that the rising value and popularity of cryptocurrencies has also increased the competition between everyone involved with it. A miner should at least be a wide reader and a constant learner due to the fact that changes are constant and new techniques are introduced every now and then to make mining easier and faster.