Steemit Crypto Academy | Introduction to Cryptocurrency Mining | Homework task 4 for @besticofinder

Hello friends !!

Today I'm going to make my Steemit Crypto Academy Homework task by professor @besticofinder, Lesson 4 that Introduction to Cryptocurrency Mining. Very interesting topic to discuss. Actually I have very little knowledge about this, but I will try to discuss it to improve my writing skills.

Cryptocurrency Mining is very familiar to everyone. This is an activity that many people around the world do. Every people mining cryptocurrency to get prizes like bitcoin. A cryptocurrency miners put in great effort such as having special computers, strong internet, and large electricity to get new bitcoins.

SOURCE

How Cryptocurrency Mining Works ?

Cryptocurrency transactions always happen at the same time. Where all people around the world make many transactions in their cryptocurrency mining applications. Transactions enter and accumulate at the same time are grouped into a group, these groups are called 'block'. Then this "block" must be verified by cryptocurrency miners. In that sense, A cryptocurrency miners verify transactions that occur in groups, not individuals. After "block" is verified, it will be added to the blockchain. This kind of technology is called blockchain.

SOURCE

First, for example you want to buy a "chair" by cryptocurrency. You must make a transaction via cryptocurrency application or internet, then your special computer identifies the transaction that is currently happening globaly. Cryptocurrency miners must verify your transactions. If it has not been verified, the transaction is still pending and your "chair" can't be bought. Cryptocurrency miners check all your past transaction data and check if you have enough cryptocurrency for this transactions. After checking everything that was needed and everything is safe, the verification will be done within 10 - 30 minutes. Last, cryptocurrency miners combine all the transactions in your place into a block and added to the blockchain.

What is Mining Difficulty ?

The main Mining Difficulty is the increasing number of cryptocurrency miners from time to time. The increasing number of cryptocurrency miners makes it difficult for the network to add blocks to the blockchain. It takes time to recover. This makes the cryptocurrency miners more competitive, whoever is fast and strong will continue to advance. Cryptocurrency miners on a small scale will have a hard time compared to a large scale.

SOURCE

Difficulty in maintaining security and hash rates is another thing that should be considered in mining cryptocurrency. Each transaction will increase the risk of system security and hash rates. It is necessary to be careful in making transactions so that everything goes smoothly as we want. The people who use the old system will lose to the new one. Maybe there are still a lot of difficulties in mining cryptocurrency, but this is the main thing i know. I hope cryptocurrency miners can solve the existing problem well.

What are the Challenges for Cryptocurrency Miners ?

• The challenges for Cryptocurrency Miners is having special computers and expensive hardware. This is an easy challenge but it requires the sacrifice of money. The existence of Cryptocurrency mining that makes money, surely make the price of special computers and hardware will be even higher. The profit earned must be able to cover the cost of electrical power required by all computers.

SOURCE

• The challenges for Cryptocurrency Miners is safety of the mining site. In the room we put a lot of special computers and expensive hardware that must be protected from thieves. Cryptocurrency mining places should not be known to many people. The safety of the mining site is very important where it is our field of making money.

Thank you for reading my blog, hope it will be useful for all of you. 😁

CC:
@besticofinder
@steemitblog
@steemcurator01
@steemcurator02

#cryptoacademy #trading #begginers #introduction #besticofinder-week4 #mining