Hello Steemit:

How are you all? Hope you all are doing well. So, today I am doing Homework 4 by @besticofinder which increase the knowledge of peoples who want to know about cryptocurrency mining. Although that lecture by @besticofinder was an introduction about Cryptocurrency Mining but from that lecture I gained and understand many things about mining.
Let's start with my homework.

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(1) How crypto currency mining works ?

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Crypto Currency Mining:

Cryptocurrency Mining is basically a task performed by machine with the help of mathematical algorithms. This was designed to perform a secure peer to peer transactions without any help or need of a central authority(government) who check the transactions.

Working of Crypto Currency Mining:

The crypto currency mining is done in a certain way. This way includes, set a specific amount of time such as, mine in seconds, minutes, hours, daily or weekly and it requires large amount of electricity. It is helpful where electricity is cheap. When a mine reached to a specific amount then the user will be able to withdraw their rewards but it depend on how that particular asset mining works. The task are known as Proof of Work. Proof of Stake is better than Proof of Work because it save lot of energy while mining.
Some different types of mining are,

• CPU Mining
• GPU Mining
• ASCI Mining
• Cloud Mining

Source

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(2) What is Mining Difficulty ?

In mining, certain amount of resources (high tec processor, electricity) are required to compete for mining assets. And it is easy in famous and big coins like Ethereum, Bitcoin etc. Mining is work on this formula,
difficulty = difficulty target/ current target.
Task assigned to miner have two values, difficulty target and current target. If the current target become 0 difficulty becomes maximum. And if target reached its maximum value which is 1 then it tends to minimum difficulty.

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

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Challenges faced by Crypto Currency Miners:

Some challenges which are faced by crypto currency miners are,

i) High Energy Cost:

Mining cost a huge amount of energy to solve one task. It is difficult for many miners who live in the countries where electricity is not cheap just like China where electricity is cheap.

ii) Illegal:

In many countries, just like Pakistan, cryptocurrency is illegal. Many miners play their role to declared cryptocurrency legal in Pakistan.

iii) Falling in Cryptocurrency Prices:

As we know, cryptocurrency prices are unpredictable. They fall or rise quickly. This is also a challenge which are faced by miners.

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Special Mentions:

@besticofinder
@steemcurator01
@steemcurator02