Crypto Academy Week 4 Homework For [@besticofinder]
Hi,
Friend, If we understand the crypto knowledge, we can perform well and this knowledge enables us to dive in a better way in the stream of digital world. Crypto academy professors are trying their best to enable the users of steemit to learn the various topics through their experties and knowledge to make better use of digital ecosystem.
Now let me tell you about the topic given by an intellectual professor @besticofinder in his week 4 homework.
This question is almost in evey mind so let it try to explain here!
1. What is crypto mining?
The process of transaction by nodes and cryptographic equations creating by computer/machines for getting reward is called cryptocurrency mining. In this way, mostly people do this work for earning reward as cryptocurrency. Now this area of income is growing fast as main source of income for many people. So how does it work, let's discuss!
In a technical sense, with cryptocurrency ther is no any central point to control in blockchain whereas centralized system is control by a company or person,
Example, banking system is the best example of centerlized system where transaction is connected to the bank. And blocks in blockchain is the example of decentralized system where cryptocurrency transaction is done and reward is distributed among computers/machines for mathematical algorithm to verify transactions.
In blockchain miners face challenge to create blocks and, that miner is rewarded which produce block very first.
There are many miners to mine crypto but some of them are for apecified crypto.
If someone wants to send bitcoin as payment, he needs a transaction so miners create unconfirmed blocks to verify this transaction and later this block will become a part of the blockchain.
So you can understand by the given image!
2. A Mining Difficulty.
If many computers are creating blocks and one.of.them done first then the reward will go it as its power of solving mathematical algorithm is fast. It depends upon number of miners to work over it. If the complexities of cryptography puzzles are fast then the reward increases.
3. Challenges in Cryptocurrency minning.
Cryptocurrency mining is very difficult as it has many challenges, I mention here some of them!
1. High Cost In Energy.
To become a successful miner, you need to collect hundreds of ASICs to solve 1 problem and this needs very high power output so it costs very high. According to CBS news, bitcoin requires more energy than one hundred and fifty countries. In thi way, it is very difficult for minning. But PoS needs less power as Ethereum and Cardano are leading currently.
On the other hand, you can use hydroelectric and solar energy for minning at low cost.
3. Hacking Cryptocurrency.
Third difficulty is hacking because many thieves attack people's computer and steal their crypto as well. But a hybrid of five protocols is being used by DigiByte is safe in some extent. Through this protocol, if one system is under attack, eighty percent remaine unaffected.
Thanks To:
Cc:
@steemcurator01
@steemcurator02
Hello @azamrai,
You have used images which you do not have rights to use. It's illegal to use them. [0]
Thank you