CRYPTO ACADEMY WEEK 4 HOMEWORK POST FOR @besticofinder - INTRODUCTION TO CRYPTOCURRENCY MINNING (LESSON 4)
Hi steemians!!
How are doing? I hope that all of us will always be protected by the almighty and always be given health.
This time I want to do a homework given by professor @besticofinder which the homework is:
- How crypto currency mining works?
- What is Mining Difficulity?
- What are the challenges for cryptocurrency miners?
1. HOW CRYPTOCURRENCY MINING WORKS?
Cryptocurrency mining is an activity that miners carry out to break or own new Bitcoin blocks. For Bitcoin Mining, you must use software and hardware devices which will then solve a number of algorithms that have been provided. Then after the software and hardware have finished solving the algorithm, we will get crypto assets as a payoff.
By joining the mining pool network, users can have the opportunity to get a lot of Bitcoin. The digital money that has been collected can be used for various transactions or for future savings.
2. WHAT IS MINING DIFICULITY?
Bitcoin mining activities have recently been predicted to only make miners lose money, because in the Bitcoin mining process it will cost huge electricity costs, there is even a study that states that Bitcoin mining uses 0.5% of total global electricity consumption at the end of 2018.
A blockchain expert, Alex de Vries said that based on his research, the current energy consumption of Bitcoin mining has reached 2.55 gigawatts. Meanwhile, by the end of 2018, he had calculated that the figure would jump to 7.67 gigawatts, only slightly behind Austria. According to him, with the skyrocketing need for Bitcoin miners for electricity, they will no longer be able to enjoy the benefits of the process.
3. WHAT ARE THE CHALLENGE FOR CRYPTOCURRENCY MINERS?
The biggest obstacle for miners is the level of cryptocurrency security. Hackers have a way of being able to steal your crypto assets. Often times they create links which when you click on the link will be attacked by malware which will automatically take the miners' crypto assets. This happens very often, especially for miners who are new to the world of Cryptocurrency.
Next up are the high electricity costs. As I explained above, in the process of mining cryptocurrency it will consume high electrical energy so that our hardware and software can solve the algorithm properly so that miners are not constrained in getting rewards from the results they have mined.
That is my explanation about mining cryptocurrency, hopefully it will be useful for all of my friends and also for myself. Sorry if there are errors in writing, and you can let me know by writing a comment in the comments column.
See you in the next post!
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Hello @banghim ,
Thank you for submitting homework task 4 !
Then it should be much higher than this in 2021. Looks like large amount of energy consumed for mining. It was an informative read. [7]
Thank you
I also think like that, because with the increase in the number of miners every year, surely the energy consumed for mining will also increase.
I am happy to be able to provide useful knowledge too !!
Thank you professor