Hello Friends!!

Today I am going to do my crypto Academy homework task for week 4, Lesson 4 which is introduction to crypto mining, the topic is really interesting I am not that expert in bit coin trading but, I have did my research for it before entering steemit so yeah here I will share what have I learned from different places and different people.Source👆
HOMEWORK TASK OF LESSON 4 BY @janemorane

How crypto currency mining works ?

Crypto currency mining is one of the key elements that allows crypto currencies to work as a peer-to-peer decentralized network without the need of a third party central authority it is a process in which transactions between users are verified and added into the blockchain public ledger and also a process that is used to introduce new coins into the existing circulating supply.Source👆

HOW DOES IT WORK?
A miner is a node in the network who collects transactions and works to organize them into blocks whenever transactions are made minor nodes receive and verify the transactions and add them into the memory pool and begin assembling them into a block of multiple transactions the first step in a process of mining a block is to hash each transaction in the memory pool before starting the process, the minor node adds the transaction where they send themselves the mining reward this transaction is referred to as the coin base transaction it's a transaction where coins get created out of thin air and in most cases is the first transaction in a new block after every transaction is hashed these hashes are then organized into something called a miracle tree or a hash tree meaning that the hashes are organized into pairs and then hashed again until the top of the tree is reached also called a root hash or a merkle root.

HASHING DIFFICULTYThe root hash along with a hash from the previous block and a random number called the nonce it's then placed into the blocks header the blocks header is then hashed producing an output that will serve as the blocks identifier the blocks identifier must be less than a certain target value that is set by the protocol known as the hashing difficulty scales ensuring that the rate at which new blocks are created remains proportionate to the amount of hashing power in the network. The miners keep hashing the header over and over again by iterating through the nonce until one miner in the network eventually produces a valid hash when a valid hash is found the founder node Will broadcast a block to the network all the other nodes will check if the hash is valid and add the block into their copy of the blockchain and move on to mining  a next block.

What is Mining Difficulty ?

Source👆

Bit coin mining difficulty is a measure of how difficult it is to sell the black every 2016 blocks that are solved the difficulty adjusts it is adjust based on whether the average time to solve the previous 2016 blocks is greater or less than 10 minutes if the average was longer than 10 minutes the difficulty goes down if the average was less than 10 minutes the difficulty goes up if the average was exactly 10 minutes the difficulty will stay the same it's unlikely you ever get an average of exactly 10 minutes but just in case it will stay the same as far as I know the Bit coin difficulty only decreased once in its history since more and more people are Bitcoin mining and they keep using more and more hashing power it's a good bet to plan on a difficulty always increasing every 2016 blocks it means the more difficulty there is the longer we'll take an average the south a given black this is why Bit coin miners have to keep getting faster and faster hardware to keep their returns from diminishing, I guess the difficulty will increase by at least 15% every two weeks. That's 120 percent in four months Minimum.

What are the challenges for crypto currency miners ?

There are many challenges for the crypto currency miners some of them are:

1.MORE ELECTRICITY USAGE

Setting up a setup for mining required very great about of electricity this is because all the computers and rigs will be kept on for 24/7 hours and because of that it will use great about of electricity which is a very much big problems for all the miners working on high level mining.

2. MORE SPACE REQUIRED

For mining you need a very big space to setup your computers and rigs because mining is not that easy to do with a single pc and you will need a big space to set all your computers in its place, and not everyone have the facility to get that much great space for mining, so yeah it is also a very big problem for every miner.

3. OVER HEATING PROBLEM

Over heating is also one of the main problem miner face because you can not place all your computers and rigs in an open space because of raining and direct sunlight, and when we place our computers in a room closed to each other, because of their more usage they get overheated and can get fused so than you will have to buy a new hardware for that and that again is a big problem for a miner.Thanks to @besticofinder for giving this opportunity. This is my homework for week #4
lesson 4.

Cc:@steemcurator01
@steemcurator02