In this Today lesson, I understand what crypto Mining, and the Difference between Proof Of Work and Proof Of Stake.

Thanks For creating an amazing lesson for us.

So happy to participate in @besticofinder fourth lesson about Mining.

Question Number 1:-

How cryptocurrency mining works?

Cryptocurrency mining is simply known as validating Transaction in Blockchain Technology.

Miners doing a job like our Physical Postal Services. How Postal Services work in the real world the same as the Mining process work Online.

For Example, if we need to send one parcel from India to DUBAI.

For this first, we fill From Address and To Address( Destination Address).

Then I pay postal charges for sending our parcel to our target address. Now our work finish.

Then after Postal department may check all available opportunities for sending this parcel to its destination as faster as possible. Based on charges we pay to play a key role in calculating the Time frame for completion of this work.

If we pay high charges then that parcel reach destination very faster, If we pay less amount for reaching it took huge time.

Like that finally, our parcel reaches its destination.

Similarly, In Bitcoin Transaction, Bitcoin miners behave like a postal service.

For example, Ram needs to send his 10 BTC to his Friend Krisha.

How mining work

Ram first submit the destination address and pay a fee for this Transaction then click send button. Now his work finished.

Then after this transaction, convert to a mathematical puzzle, then send to miners for validating this Transaction. Here Miners solve this puzzle send to it's the destination address. For doing this verification they get a reward in the form of Bitcoins.

This process is known as Mining, validators are known as Miners.

Question Number 2:-

What is Mining Difficulty??

In every job there us risks along with good earnings too.

Like that Miners also having a lot of difficulties in their job.

• Need to invest huge money in buying Mining Equipment.

• Need Good Power Supply

• For Mining, they use powerful Commuters so they generate overheat so need Air cooler for keeping systems always incorrect conditions.

• Along with Investments they also need knowledge in Problem solving skills, Software skills for handling sudden crashes.

• They need a good Network connection too.

• Need Permissions From Government to set up their mining system in that region. Because in some area still Mining is prohibited.

• They need to invest huge money in purchasing ming rigs, Graphic cards and many more.

• Bitcoin Miners get a reward after finishing 1MB worth Bitcoin only. So here is a chance that all miners do not the et reward of 100%. In this case, they lose their investment too.

• Security also playing a key role because hackers become very active than us. So need to secure our network and system too.Other wise we lost all our reward money.

Like that lot of difficulties Miners facing in their job.

Question Number 3:-

What are the challenges for cryptocurrency miners?

Their main challenge needs to solve that puzzle as fast as possible at the same time need to give the correct answer.

The mining process going on the Blockchain. So It's available throughout the world, a lot of miners trying to solving that puzzle at a time, who have huge commuting power they solve faster. So they get the reward. The remaining miners don't get anything.

Miners Challenges

The mining process for generating earnings need high-speed commuters along with problem-solving skills otherwise, we don't get any earnings in this field too. Here is high risk involved at the same possible to earn good returns on a single investment.

Hope I finish all my homework tasks correctly. If any wrong I give pls verify me.

Thanks for Reading My Post.