What is mining? Unpacking and testing of new minings

I waited for my package :) Two new mining farms that will bring me money. I hope so) I want to thank Steemit for everything he gave me. Thank you, dear community! Thanks to you, I was able to buy two good farms. This is a huge purchase for my family. You did a lot of good for each of us!

SO let's get down to business!

Before you read this you should understand how cryptocurrencies are mined. Many cryptocurrencies are mined using various types of computers. The most basic and least expensive form of mining is using your home computer, or more specifically its CPU (central processing unit). Unfortunately this is pointless on most cryptocurrencies as its hash rate isn’t high enough. However there are a few cryptocurrencies that can still be feasibly mined with CPUs such as Quark.

The next way of mining cryptocurrencies is using GPU (graphics processing unit). This is much more efficient than mining with CPUs (but also more expensive). Many cryptocurrencies can still be mined using them.

Before mining any other cryptocurrency you may want to know how profitable it will be. This can be found out through mining calculators. Factors that you need to take into consideration are the machines hashrate, power consumption and the price of your power.

The other way of mining and the one most used is ASICs (application specific integrated circuits). This is the most efficient way of mining, but also the most expensive. These are as the name suggests, specifically designed to mine Bitcoins and are the only viable option for mining Bitcoin. ASICs are only really used to mine Bitcoins as they haven’t been developed for other cryptocurrencies and several cryptocurrencies are designed to discourage the use of them.

The last way of mining Bitcoin is mining it through a contractor or through the cloud. Using this method you pay a company who already has the mining hardware and you rent an amount of their hashing power which they use to mine bitcoins for you.

Many cryptocurrencies are produced by computers mining coins. Before you understand this you must understand the blockchain.The blockchain is the ledger of all the transactions of a certain cryptocurrency that have taken place. Each block contains a set of transactions done in a period of time. On average in bitcoin a new block is added to the blockchain every 10 minutes.

However before a block can be added to the blockchain the information in it must be used to create a hash. Miners do this by applying a mathematical formula to the information in the block. This turns the information into a hash, which looks like a sequence of random letters and numbers. The miners also use the hash of the previous block to generate the block’s hash.

This system prevents people from tampering with the blockchain and committing fraud. This is because if you faked a transaction by changing a block already in the blockchain, the information in the block would change. Therefore the blocks hash would change as it uses the block’s information to generate it. Then if someone wanted to check if that block was authentic they would run a hashing algorithm on it. They would find it to be different to the hash already stored with that block in the blockchain, so they would know it was fake.

As well as this all the blocks after the changed block would be different as they use the previous block’s hash to generate their hash. As the tampered block’s hash would be different all the hashes of the blocks created after it would also be different and everyone would know the block had been changed. The miners are rewarded with coins for creating these hashes.

The first miner to create a hash with the correct number of zeros at the front collects the prize of coins.This is why the speed at which mining machines can work out which nonce is correct is important. Each time the machine tries a new nonce it has to rehash the information to see if the hash matches the amount of zeros needed. This is why the speed at which the machine hashes a block is mainly down to its hashrate, the amount of hashes it can perform in a second.

So, this was my short overview of the main ways of mining the Crypto-currency. But I will not get the bitcoins, oh no! My method of mining works on another algorithm: mining on GPU video cards.

Let me introduce my twins: T-Miner ProSteel X8 470 (TMPS-8M470 / 4G-V1)

Short characteristics and photos below

We open the first box.

What do we see here? Video cards are poorly fixed and scattered throughout the body. The result: two broken video cards.

Trying to make an emergency repair :)

I'll tell you a secret: when we turned on this miner, one of the video cards caught fire. The store promises to replace the necessary cards and spare parts.

With fear, we open a second box.

In the second farm, video cards are fastened well. No problems:)

Video Cards 8 x MSI RX 470 4GB Mining 8*4 Gb

Intel Celeron G3900 Processor

Lets go

They work relatively quietly, at the same time they heat up the kitchen)

So, thank you dear community for such wonderful New Year's gifts!