Mining 101
The internet is brimming with all sorts of glossaries, guides and tips and tricks articles on mining. Some are truly interesting and useful, while others are downright profane. It is true that being a miner is a responsible and rather profitable undertaking, but only if one approaches the question with due diligence and proper research.
To start their own mining endeavor, one needs to first conduct thorough research on the subject of mining as an industry. There are plenty of reasons that would deter one from undertaking the purchase of equipment. One of the reasons is the presence of the cloud mining industry, or companies like Astra that specialize in maintaining equipment pools for fees, thus freeing miners from the need to spend on electricity and waste time on equipment maintenance.
But if one has truly decided to embark on the path of cryptocurrency mining, then one of the first places to start would be learning the ropes of the business by getting to know the terms prevailing in the industry. And we have compiled a comprehensive list of the most popular and important terms that budding new miners need to know by heart. So here we go, the Astra miner’s glossary:
Mining – Mining is the set of activities needed for extracting cryptocurrencies with the help of special equipment and software. The process involves the use of processors that are required to solve complex mathematical calculations and present them for consensus by network nodes. If agreed upon as the correct sequence of code, the miner gets a reward.
ASIC ("Application Specific Integrated Circuit") – These are special microcircuit chips configured to perform only one specific type of work, and that is deciphering cryptographic algorithms on the basis of which the blockchain of cryptocurrencies work. ASIC cards are utterly useless as graphics cards and are very difficult to sell on the secondary market.
CPU Mining – This is a type of mining using a standard central processing unit, or CPU. CPUs are the cornerstone of any computer and are capable of quickly switching to new tasks, but handle repetitive ones much more slowly. This type of mining has become obsolete.
GPU Mining – This is a type of mining using basic video cards, or graphics processing units. GPUs are able to effectively perform many identical, repetitive tasks very quickly, but at the same time they will slowly switch to any other types of tasks. As a result, graphics processing units perform cryptographic computations in large volumes much faster than CPUs. Accordingly, GPU mining is faster than CPU mining.
Mining farm – This is a set of special aggregates combined for the purpose of mining cryptocurrencies in specialized locations, such as warehouses. Cryptocurrency farms can consist of a variety of different components: video cards, processors, hard drives, special equipment created exclusively for mining, and lots of cooling equipment to make sure the mining hardware does not burn up from processing feedback.
Mining hotel – This is a special type of room with ventilation and climate control, in which miners place their mining equipment. When positioned in such venues, the mining equipment does not bother anyone, as it is under the supervision of a system administrator and is guarded.
Cloud mining – This is the process of mining a cryptocurrency using a remote data center with combined computing power. This is the principle upon which Astra operates, as the company hosts a large number of remote centers that are offered to miners at affordable fees and very favorable conditions.
Mining pool – This is the combination of equipment from many miners to increase the probability of finding a block and earning a reward. The reward for the block won by the pool is distributed among all participants equally. Astra operates on the same principle as the combined computing power works for the benefit of all community members.
Mining contract – This is a contract between a miner and an entity owning computing facilities for the lease of these facilities with subsequent payments of dividends to the miner. Usually, such contracts have specific expiry dates. The contracts offered by Astra are indefinite.
Hash – This is a combination of numbers that allows access to new transactions and private keys.
The hashrate is the computing performance of equipment used for mining cryptocurrencies. It is measured in hashes per second.
And that is the main glossary of terms that aspiring miners need. After considerable research and deliberation, most miners realize that the current market condition and problems associated with relocations and legislation, as well as electricity costs, can impede them from achieving their goals or even reaching break even points.
But any investor or crypto enthusiast can become part of a new generation of miners by joining the Astra cloud mining community at the most favorable conditions on the market.