Steemit Crypto Homework Task 4: Cryptocurrency mining; How crypto mining works || lesson by @besticofinder
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Introduction
Hello, esteemed Steemians. It's a great thing to learn from seasoned professors and I feel so happy learning from one of the crypto professors @besticofinder, the professor lectured on Cryptocurrency mining and it's indeed a great lecture as always. There are three questions in the task assigned to the lecture and I will give my best to solve them all in this post.
How does crypto mining works?
To talk about how cryptocurrency mining works need a basic understanding of what the process of cryptocurrency mining means. Cryptocurrency mining is the process by which a set of people work as validators of transactions on the cryptocurrency network before adding it to the blockchain. These people use certain programmes or computers to carry out their act of validation of transactions by solving some cryptographic equations or mathematical complexes attached to the blocks each time transactions are created on the crypto network.
Crypto mining works in such away that some set of people known as miners takes up the job to verify transactions on the crypto network. Cryptocurrency lacks regulation as other financial organizations like banks do to a nation's currency affairs, miners takes up the regulatory job which is validation of transactions by solving cryptographic equations or mathematical complexes to verify a block from a transaction thereby adding it to the crypto ledger otherwise known as Blockchain. Miners uses machines or computers to do their validation job and earn Bitcoin rewards for their work of validation.
What is mining difficulty?
Difficulty in the process of mining refers to the measure of amount of resources required to complete the mining of a new transaction on the cryptocurrency network. Also, its meaning further explains the difficulty and how time-cosuming it is to find the right solution to a particular block before it can be successfully validated and added to the blockchain (crypto transaction ledger).
Miners solve complexes that are not easy to solve and that requires great expertise to provide the accurate solution before successfully verifying any transaction on the crypto network. And those are the difficulties in crypto mining and that amount to what is known as Mining difficulties
What are the challenges of miners?
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Miners tend to face a lot of challenges which greatly influence their effectiveness of work and thereby slow down their transaction verification process. I will give a list of some of this factors below;
Hard Complexes: Miners tend to face hard complexes that are not so easy to be solved thereby slowing down their works. These challenges also can be solved to an extent whereby, miners work in groups known as a mining pool to enhance their validation process such that all team members come together to solve the complexes thereby enhancing productivity.
Very High Power Consumption: The process of mining requires high power consumption such that miners needs enough power to stay active and solve more complexes but due to hindrance of not getting enough power or inability of a miner to generate a high power supply for his tools, it tends to affect his productivity and rendered him a downtime forcefully. This problem can also be taken care of by what is known as a Proof of stake whereby miners will just have to stake their assets for utilization by other miners, these assets are resources other miner use to verify transactions and in return the miner earn rewards from his staked assets.
Subceptability to Hacks: Since their works are placed on the internet, miners tend to face the issues of hacking as crypto hackers tend to hack in and take away their hard earned resources.
Centralization: Most of the tools used for mining are to be connected and centralized such that the whole system can cease to work if other parts are not completed and some of these tools are costly to get and thereby limit the productivity of a miner.
Conclusion
It's a great privilege to learn under the umbrella of the crypto professor @besticofinder, the process has really enhanced my knowledge in the field of cryptocurrency generally, thanks to the professor for his time and I look forward to learn more from the professor and other Steemit crypto professors. I believed I've done enough justice to this task. Thank you all.
Specials regards;
Cc: @steemcurator01
Cc: @steemcurator02
Cc: @steemitblog
Cc: @besticofinder
Written by; @fredquantum
Hello @fredquantum ,
Thank you for submitting homework task 4 ! I love how you have discussed "What are the challenges of miners?" , well explained and informative.. Good job ! [7]
Thank you
Thanks for the review on my work dear professor @besticofinder. I look forward to learning more from you subsequently. Thank you once again.