Homework 4 : Cryptocurrency Mining, Mining Difficulty and challenges by @yuceetoria.

Hi Steemians, It is another wonderful section of this week's lectures by @besticofinder, introducing the student to Cryptocurrency Mining. This is the link of the lectures.lectures

In week 4 task we are expected to discuss how currency mining works, what is Mining Difficulty and what it's challenges are in a way a beginner would understand well.

For the purpose of my post, I would first define

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WHAT IS CRYPTO CURRENCY MINING? Cryptocurrency is where machine performs a task assigned to earn assets on the Blockchain.
Cryptocurrency Mining started in the 1990s, when there was a desire for methods to perform a secure electronic peer-to-peer (P2P) transactions without the need of a central Authority to check the transactions. This was made possible with the emergence of bitcoin in 2008 by Satoshi Nakamoto. Bitcoin utilized two new intertwined technologies : Blockchain and Mining.

HOW DOES CRYPTOCURRENCY MINING WORKS?

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If you have an android or PC and you want to mine, there are certain tasks that you need to do to obtain some cryptocurrencies. You either mine, in seconds, minutes, hours, daily or weekly to reach a specified amount before you can be able to withdraw depending on how the particular asset mining works. These tasks are called"Proof of Work". These tasks are mathematical equations which are entered into the Blockchain. They include

• Cloud Mining
• CPU Mining
• GPU Mining
• ASIC Mining

WHAT IS MINING DIFFICULTY?
Difficulties in maintaining mining in a blockchain. Mining Difficulty is a measurement unit used in the process of any Cryptocurrency assets mining and a certain amount of resources is required to compete for mining assets. This usually happens when a cryptocurrency becomes very popular like Bitcoin, Ethereum, or Litecoin and it's participants increases. These participants compete against each other for limited block rewards assigned to each tasks.

CHALLENGES ASSOCIATED WITH CRYPTOCURRENCY MINING.

The rise of Cryptocurrency has also introduced high risk factor.

• High Energy Cost: Mining in a Cryptocurrency transactions requires an amount of energy, it helps for smooth transaction but this energy causes an high amount of energy.
• Security of Cryptocurrency Mining: Hackers have improvised ways to tap your resources. Most cyber thrives creates a ransom malware that mine cryptocurrencies from a person's wallet. Most at times they come in form of links that when you click on th link, you are automatically attacked.

Thank you @crypto-academy and @besticofinder for the opportunity to take part in this community.

#cryptoacademy #besticofinder-week4 #cryptomining #nigeria #steem