Homework Post for [@besticofinder] Crypto Academy Week 4 @harry21

How to cryptocurrency mining works?

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Bitcoin Take an example so that there is someone who wants to send five bitcoins to Rachel.

Now we will see how this transaction can be done now. Bitcoin is based on a digital currency regardless of the geography of any person. Look, the amount of global currency transfer in bitcoin amount to anyone so basically you just need to open an account on bitcoin work it has some bitcoins and you can transfer it either your bitcoins Can be purchased online through any exchange or you can mine it so that once you have created bitcoins in your account you can transfer it to someone whose address you now need to know The Bitcoin mining needle will go deeper and it will be understood how to maintain the seriousness of the bitcoin transaction and ensure that the seriousness of the bitcoin network is maintained. What are the implications behind the lent curtain for maintenance?

Owen in the network and it is a successful transaction so let's understand some basics so we need to know what we need today. What We Are Bitcoin We will understand the compromising technology blockchain then we will talk about what are the advantages of bitcoin compared to other digital currencies and other digital technologies after you imagine bitcoin mining And we will demonstrate some aspects of bitcoin, what is bitcoin first vectorized digital currency it allows users to move from mini typer to toe without any intermediary.

Brokers, the agent of the banks' governments, has nothing to do with it and is eliminating all blockchain technology so that we see in our previous example the two parties exchanging money to transfer money which is now an intermediate. No need to be used for online shopping, commerce transactions. Can be used irrationally to pay Buy goods and services that were created in 2009 by a person or group that helped transfer Satoshi Nakamoto bitcoins against regular fiat currencies This is because it reduces transaction fees as it also eliminates the primary source of cost.

This script is graphically secure. It uses cryptographic infrastructure and also protects the identity of the sender and the sender, and encrypts customer information and who is transacting or hiding part of our work. And now it is also safe What are the advantages of bitcoin so it is fast and instant peer relationships it is impossible to forge or hack transactions running on the bitcoin network and all these matters are decentralized which I don't have a central body controlling the transaction or charging a fee to verify the transaction, the paint in the decentralized network that takes care of the seriousness of the network thus ensuring that aggregate At the cost of the transaction, all information is accessible to the public, which anyone can access and view transactions and volume on the bitcoin network. This is a relatively low fee transaction and less than other mediums channels through which digital transactions are made today which is based on blockchain import technology. Which is recorded in chronological order. View some features in which it is a saved symbol using your private key and then jointly with the public key then this record is imitable or does not adjust or change any transaction on blockchain Can be done Dye & Textures Containers are toured in blocks called blocks. A block is the smallest unit of blockchain that records all transactions in the blockchain infrastructure.

Mining Difficulty

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In short, the process of creating a new block for a mining blockchain and filling that block with transactions.

But what I didn't explain is that there is a "mining defect." To understand this, let's look at the problem that blockchain has tried to solve. :

Building consensus among a group of computer nodes on the Internet.

In the case of a cryptocurrency, there is agreement on how individual users have spent on coins. It doesn't seem to be happening, but it is a difficult problem to solve. The nodes in this network are not always honest, and they may appear or disappear at any time. Imagine for a second you were transposed into the karmic-driven world of Earl. Your computer is running on the Internet and participating for other nodes as well. But how will your computer know which ant to trust? One of them can test the node system and make himself rich.

The creator of BitcoinVass has simplified the proposed solution: the longest legitimate chain picker, but that's not enough alone. If you are one of the attackers, you can make a very long chain through false transactions, and everyone will think that your reality exists. Utility! To solve this problem, Satoshi slowed down the process of creating new blocks with the work algorithm. It's almost like a lottery. Where your computers perform overall random calculations and are the first to solve a cryptographic problem. Your chances of resolving it are slim. It is trying to pick a complex lock, just like almost all the miners in the world. Combinations, but in the end, only one can solve it. And when that happens, you have to start working again to create the next block. On average, every 10 minutes there is a computer that solves the puzzle and rewards the creator.

New block. At this point, a 10-minute delay creates the possibility of artificially creating the longest chain, as it is possible that your computer alone can snatch the lock or solve the puzzle. You need a lot of people, try a lot of random combinations to get it done within a time frame. Amazing, problem solved! Mistake, but keep it up! Another problem is: our computers work overtime, so newer computers can do more calculations and possibly improve the blocks they create in 10 minutes. An attacker could buy very fast computers and try to get ahead of everyone.

Fortunately, Satoshi also thought about it, and that eventually leads us to the "trouble" of mining. This is a number that is controlled. Your computer has to work to create a new block. And that's not a fixed number. It is automatically adjusted every 2016 block. The system looks at how quickly these blocks are created. This will usually take exactly two weeks. If more blocks were created in it. Over time, difficulties increase. If fewer blocks are created, the problems will be less. This sounds easy, but why adjust to this district every two weeks? We don't get massive computer upgrades. Every week, the Reds are fine? Well, the system has to pay for the number of people who are exposed to minerals. More miners mean that there is a greater chance of solving this puzzle in a shorter time frame, which means that it should be more difficult to maintain.

The opposite is also true. If a lot of people stop mining, the blocks of creation will be longer and thus the difficulties will be reduced. So the bottom line is that it always takes 10 minutes to mine new blocks, no matter how fast our computers are and it doesn't matter how many people are mining. Great system but it has one big flaw: it is centralized. See why people are mining for profit. As long as your mining process is profitable, you can continue with it. Occurs, where you are forced to stop your work. And the answer to me is that only the big miners are left because their economy is on a scale. In the case of bitcoins, we see that some large mining farms and mining ponds are playing an important part in this "mining market".

Challenges for cryptocurrency miners,

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Cryptocurrency mining is the process of issuing cryptocurrencies on a network by completing a certain set of mathematical calculations. And just like any other mining industry: gold, data, etc.

Uninterrupted cryptocurrencies were created using a technology called a blockchain. Blockchains are digital ledgers that permanently store information. More specifically, they are blockchains with data verified together by "blocks". Therefore, to create a blockchain, the data must be processed and verified. This is where crypto miners come in, verify the data, and in return, earn rewards in cryptocurrencies.

In fact, you can easily do my work with your personal computers. However, this is no longer the case, especially with the increase in the number of corrupt miners. Ideally, each crypto has its own "lock time". For Bitcoin, it takes about 10 minutes to place the block on your ear, and for ether, about 20 seconds. With that in mind, this means that a single computer or PC is not damaged. As such, miners are forced to adopt faster processors.

In general, corrupt mining can be an easily profitable business plan, but it is important that you understand the three main challenges that corrupt miners face and how to overcome them.

Related: 7 Reasons Experts Say It's Not Too Late To Invest In Crypto

High energy costs
To maximize successful mining opportunities, you will need to assemble hundreds of ASICs to solve one problem. As a result, it will require a lot of power generation, which will cost you a lot of electricity. A report from CBS News reveals that bitcoin mining uses energy from more than 150 countries. But there are possible ways to tackle this challenge.

1. Crypto miners can choose less powerful protocols. One of them is Proof of Consensus, which protects networks by stacking cryptocurrencies. Currently, Ethereum and Cardano are leading the charge. (Note: This does not solve the centralization problem, as more and more interests are interested. Only those who can afford to have their own crypto and largely benefit from the protocol).

2. Run your mining activities in mining facilities and mining data centers that are powered by renewable hydropower and solar power. Mining companies such as Hydrominers and Burensi reduce high energy costs by driving mining activities through hydroelectricity, and their mining plants are located in cooler regions to reduce heat dissipation costs. To go

Cryptocurrency risk
In addition to creating a democratic vacuum, the essence of decentralization is to ensure security, right? Well, hackers are getting more sophisticated when it comes to leveraging your resources. In fact, in 2017, Agard reported a growth rate of 31% in the browser cryptocurrency. Meanwhile, the concentration of power is not just a victim of malware attacks, but cyber crooks are now using tactics like ransom cryptocurrency remotely from people's computers.

There is no traditional solution to this problem, but the improvements to the POS adopted by DJ Byte, which uses a hybrid of five protocols on its blockchain platform, is a powerful tool to prevent these types of attacks. Corrupt miners can be used for defense. Meanwhile, it is interesting to note that each protocol contributes only 20% to the security of the platform in this case. Therefore, if a system is at risk, 80% are not affected. Similarly, this hybrid model helps combat centralization. At any given time, a miner will control only 20% of the network, even if he is responsible for 100% of mining on a given protocol.

Centrality
ASICs specialize in mining a particular cryptocurrency. They are so powerful that once a coin-related ASIC is issued it sometimes becomes a challenge for me with no one. While this is a huge development in the crypto industry, it is also seen as a problem, as many crypto miners are influencing the way and style in which ASICs are created or designed. And because the number of ASIC manufacturers is so small, the mining space will eventually become the center. However, there are two possible ways to address this problem: decentralizing the ASIC miner manufacturing process and implementing a new hashing algorithm that will effectively eliminate existing ASIC miners.

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