Homework Task 4

(1) How crypto currency mining works ?
(2) What is Mining Difficulty ?
(3) What are the challenges for crypto currency miners ?

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(1) How crypto currency mining works ?

Cryptocurrency mining is the result of solving a block of logarithms with a relative difficulty which group the transactions of a network to add them to its blockchain, this allows the creation of new currencies, this is done with hardware that is powered by an electric current already your vs generate your mathematical ability to solve logarithms.

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The btc is the first currency to be mined in the world, international companies created machines for this purpose such as the asic bitmain and other machines every year these machines are updated to generate more mining power called H / s (hash) since the difficulty of mining increases every 2016 mined blocks. We will see this in the next question below.

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(2)What is Mining Difficulty ?

The difficulty of mining is about relatively reducing the ease of mining an algorithm every 2016 the difficulty of the btc grows and the machines have to generate more hash power to mine the same capacity that before this is adjusted by the same system we can say that this is the value of the mining capacity is programmed automatically so that this is produced thus avoiding extreme volatility in the difficulty.

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(3) What are the challenges for crypto currency miners ?

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The main problem that is faced in terms of mining is the equipment in 2021 after the harving, the fully decentralized (digital) Gold Rush was exploited, never seen in history, this caught the attention of different companies, organizations, and people from all over the world. world to invest in these machines and look for alternatives to mine as for example I saw a Chinese who combined a ps5 in a powerful mining machine things like this and things like the graphics card company Nvidia has created a GPU just for (gamer) that goes down the mining capacity but as you see increases the power of the graphics (pirates) work on building a bios layer to circumvent this protection.

We also have to bear the high cost of these equipment and the electricity capacity consumed in some countries such as Venezuela, digital mining is prohibited for citizens because it is part of the presidential dictatorial policies. Many people scoff at these parameters.
As for the safety of mining, everything depends on the pool or platform you use and its reputation, so we have to take into account all these challenges that we may have when mining btc, which if you know how to do it well, you can have very great benefits.

Conclusion:

Regarding cryptocurrency mining, my conclusion is that if you have the economic means to do it, it is very lucrative, you have to take into account the cost of the machine, the electrical cost, the place of deposit, in addition to the platforms, investigate well that have a good reputation. Do not choose any randomly, also be clear about the currency to be mined will depend on the equipment called ring with graphics cards (GPU) or the asic machines all work with a different logarithm both for btc or for eth (ERC20).

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This is my contribution today for the crypto community I thank professor @besticofinder for this masterful class of cryptocurrencies that I will continue to learn more and put it into practice in my personal actions, very grateful.

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Cc:
@steemitblog
@steemcurator01
@steemcurator02
@besticofinder