Despite the fact that cryptocurrency mining will be ten years old come 2019, mining is not that popular practice among the majority of cryptocurrency investors.
Many cryptocurrency investors prefer buying and holding or trading. Maybe why not many are into cryptocurrency mining is the concept of mining: you’ll need high end computer hardware, graphic cards and high energy to mine.
Beside that, you may also need to know that mining isn’t about what is listed above alone. In the past 10 years or so, we’re beginning to see PC game platforms allowing people to mine when you’re away from your system and exchange that digital currency for new games. Because of that, gamers and hardware junkies are considering taking the role in the way and this will not disappear anytime soon.
John Diver in his recent interview with last Week tonight even admitted this about cryptocurrency and he said ‘cryptocurrency is everything you don’t understand about money combine with everything you don’t understand about computers.
So what is mining?
There is no denying that bitcoin and other cryptocurrencies (also known as altcoins or alternative coins) is making headlines on a daily basis.
Even though there are more than 1000 cryptocurrencies, bitcoin has the largest share and thus looks more like the dollar of the cryptocurrencies. You can get bitcoin either by buying or mining it, but you can no longer mine bitcoin with a regular computer anymore. It requires hardwares like ASICS for mining to work. You equally mine other coins and still convert them to bitcoin using various exchanges and services.
Also earning bitcoin can be done by lending your computer’s processing power to services like Nicehash which pay out in bitcoin. So what is mining? Well many thinks mining is a process of finding coins, but there is more to that.
Each cryptocurrency relies on the core concept of the blockchain because the cryptocurrency was designed to be decentralized, secure and unalterable.
So every transaction is encrypted and once the transaction takes place, it’s added to something called a block until a fixed number of transactions has been recorded. Once it reaches the required number of transaction, the block will be added to a chain also called a blockchain which will be available publicly.
There is nothing left behind because it is also a pillar of cryptocurrency. So the location of the transaction isn’t centralized, either so that it can’t be manipulated or controlled by one or entity. Because of there heavy encryption, they’re sort of like complicated math puzzles that only powerful computer capable hardware can solve. You’ll need powerful CPU or Radeon and Getforce graphic cards.
The process of solving the math puzzles on these blocks and adding them to the public block chain is what is call mining. So the miner verifies transactions to ensure that the transactions are not false and keeps the infrastructure inline. The miner gets rewarded by receiving payments in that block coins.
However, the payment is based on how much their hardware contributed to solving that puzzle. Once his transaction is completed, a coin is created. The block solved and coins and distributed fairly to miners, thus increases the coin’s supply. One advantage of the block chain technology, is it can be use for financial transactions.
It’s designed not to have a single point of failure and to have a single point of failure and to be fully transparent. That explains why it’s rapidly emerging in the gaming space. It can also be utilized for secure cloud storage distributed across thousands of computers.
Even physical objects could conceivably be given unique digital ownership or identities. Anything of value can be integrated with the blockchain technology. The possibilities at this point are endless.
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