Steemit Crypto Academy Contest / S9W5 - "Cryptocurrency Mining".
Hi Steemians, I'm very happy to be participating in the fifth week of Season 9 of the Steemit Engagement Challenge. Today I am here to participate in a contest organised by SCA, and the topic is "Cryptocurrency Mining." So let's start without wasting time.
What is cryptocurrency mining? How does it work?
We know blockchain is decentralized, and every blockchain has its own methods to approve transactions. The process of approving and adding transactions to a blockchain network is known as crypto mining," and it is not an easy task.
The first mining method was proof of work, in which miners had to solve some complex mathematical problems to validate the transactions. But after that, many new methods of mining came, like proof of stake, delegated proof of stake (Dpos), etc.
Crypto mining actually works like other real-life mining, such as gold mining, in which miners have to do a lot of hard work to find gold. Like this process, bitcoin mining is also a very complex process as it requires a lot of computational power and electricity.
In crypto mining, the miners have to do a lot of hard work to validate the transactions by solving very large and complex mathematical puzzles so that they can validate the transactions and mine new crypto tokens like Bitcoin.
Can STEEM token be mined?
As I said above, there are also many methods that other blockchains use for approving their transactions. And there is no doubt that STEEM tokens can be mined by a process known as DPOS. We already know about witnesses on the Steem blockchain, like Steemchiller, Justyy, etc.
So in the Steem blockchain, the STEEM tokens can be mined by the top 21 (20+1) witnesses. These 21 witnesses are responsible for validating transactions on the Steem blockchain. These witnesses are selected by the voting of the users of the platform.
Every new block is added to the blockchain in 3 seconds, which means a total of 20 blocks in a minute and 1200 blocks in an hour. Each block generates almost 3.1 STEEM tokens, and that reward is shared among the witnesses. So in this way, the STEEM tokens can be mined on the Steem blockchain.
Name The various types of mining methods for cryptocurrency
Different blockchains use different consensus protocols, and there are a number of these types of mining methods available in the crypto world. Now I will tell you about some of the most popular mining methods for cryptocurrency.
Proof of work
Proof of work (Pow) is one of the first methods for validating transactions on the blockchain. In this process, the miners have to solve very complex mathematical problems to validate transactions and create new blocks. The cryptocurrency that uses this mining method is bitcoin.
Proof of stake
Proof of stake (POS) is very good from proof of work (POW). In this process, the validaters have to stake their cryptocurrency for approving transactions. The more crypto stake one has, the more chance he has to participate in the mining process. The Ethereum blockchain is using this mining method.
Delegated Proof of stake
Delegated proof of stake (DPOS) is similar to proof of stake (POS), but in Dpos, the crypto holders select witnesses so that witnesses can validate the transactions and create new blocks. Some big examples of blockchains that use this mining method are TRON and STEEM, which both use the DPOS mining method.
Proof of Importance
In proof of importance (POI) mining method, the participants are assigned an importance score. Actually, the importance score is based on the crypto holdings plus the number of verified transactions. The higher the importance score, the more chance one has to become a miner. NEM crypto uses this mining method.
Have you ever been involved in cryptocurrency mining? If yes can you share with us how you mined this coin?
No, I have not been involved in crypto mining yet because there are many reasons for that. First of all, mining is not an easy task as it requires a lot of electricity, big devices, a lot of staking of crypto, etc. Another reason is that in our area, cryptocurrency is not so popular as it is a village-type area, so that is why people are unaware of crypto as well as crypto mining.
The government of Pakistan has not fully legalised crypto, so out of fear, I was unable to participate in crypto mining. But as the Steem blockchain uses the DPOS method, I voted for some of my favourite witnesses so that they could verify the transactions on the Steem blockchain.
Some witnesses that I have voted for so far are stmpak.witness, bangla.witness, pennsif.witness, and some others. But I have my mind set on doing crypto mining in the future when crypto will be fully legalised in Pakistan, and I hope these days are very close because crypto is the future; no one can deny it.
Give some of the Importance and benefits of cryptocurrency mining
Cryptocurrency mining is very important for blockchains, and without this method, it is difficult to run a blockchain. Miners validate the transactions on the blockchain, which is very good for the security and integrity of the blockchain.
- More Secure
One of the main benefits of crypto mining is that it makes the blockchain more secure, which means all the data on the blockchain is saved for a lifetime by miners, which can save us from illegal activities like fraud, etc.
- Decentralized
Blockchains are decentralized, which means no one person is responsible for validating the transactions. Mining makes the blockchain more decentralized because the transactions are verified by not a single person but all participants, which surely increases the transparency of the blockchain.
- Source of Income
Crypto mining is the best source of income, and we can generate a lot of money from it. Big crypto investors are now involved in mining, which can surely be helpful for them to generate income from crypto mining.
- Blockchain Growth
Another benefit of crypto mining is that it is very important for the growth of any blockchain. Miners get rewarded with new crypto tokens for approving transactions. These tokens add to the circulating supply of that particular crypto, which is really good for the growth of blockchain.
- Beneficial for Countries
We know crypto mining is a rewarding process, and many countries are earning money from mining nowadays. So one of its benefits is that if poor countries arrange mining setups, they can earn good money from them, which can be beneficial for the country's economic growth.
Name some of the challenges of cryptocurrency mining
There is no doubt that crypto mining is a rewarding process, but it also has some disadvantages for which it is banned in many countries around the world. As this process is associated with cryptocurrencies, the cryptocurrency market is very risky, which is why some countries do not allow crypto mining due to the volatile nature of crypto.
Electicity consumption is another challenge that the miners can face. We all know that crypto mining is an energy-consuming process and requires a lot of electricity for the running of mining machines in the POW method. Also, the heat release from those mining machines can be harmful to the environment where they are working.
Crypto mining is not an easy task because for this we require advanced technology tools such as application-specific integrated circuits or graphics processing units, and these tools can be very expensive for us to purchase. So it is difficult to arrange a crypto mining setup for the poor due to very expensive machinery, which can be unaffordable for them.
Every day, new miners join the network for transaction validation, which makes this process more competitive for the miners. The miners with heavy machines and good resources have a chance to get more reward from the block creation, which can reduce the rewards of small miners, which can demotivate the individual or small miners.
https://steemit.com/hive-172186/@malikusman1/achievement-1-by-introduction-malikusman1
WRITER:
Hello @malikusman1
Your provides a comprehensive overview of various aspects related to cryptocurrency mining. You have accurately described different mining methods such as proof of work, proof of stake, assigned proof of stake, and proof of importance, and you have described examples of blockchains that use these methods.
Your provides a good understanding of cryptocurrency mining, its importance, and the challenges it faces.
Writer @mateen005
Hello @mateen005,
Bhai jan sabsy pehly me apka bht shukar guzar hun k apny meri post ko visit kia. Mje khushi ha k apny meri post se ilam hasil kia. Me koshish karunga k isi tarah ki informative posts lagata rahu. Shukria.
Twitter share :)
https://twitter.com/MalikUsmanMuba2/status/1659103267329015811?t=QQsi5JTyxqxJlQh_n1gUGQ&s=19
You have brought up important issues in crypto mining, especially In terms of accessibility and the inequality that exists in this industry. It is true that crypto mining involves the use of high-tech equipment that is often expensive and difficult for people with limited resources To reach. This has led to a gap between large miners who have access To more powerful equipment and smaller miners who may not be able to compete.
Awareness of this inequality is the first step In creating a more equitable and inclusive mining environment. With constant innovation and collaboration ,it is hoped that these challenges can be overcome and the crypto mining industry can become more balanced and profitable for all parties involved.
Thank you very much!Good luck.
Thank you very much for taking your valuable time to read my post. Indeed, mining can be an expensive process for those who do not have many resources. I appriciate your good comment. Success!
Good very nice entry
Mining here means cryptocurrency mining. Cryptocurrencies like Bitcoin are mined from digital platforms in the same way as gold is mined from gold mines. To understand cryptocurrency mining, we first need to take a little idea from Bitcoin. A word familiar to all of us is Bitcoin. A Bitcoin is a cryptocurrency.This platform of ours is very important to me.Which I realize all the time.
I always wish you the best in this contest.
best regard @jannatmou
Thank you so much sister for visiting my post. I wish you all the best.
You are most wellcome brother
Thanks for inviting me and shared your valuable views on crypto world and cryptocurrency mining. You have also shared it different methods used in different Blockchain to varified and adding new transactions. You also mentioned crypto mining risky factors. Thanks for in detail perspective about it. Wish you good luck.
Thank you so much for your valuable comment.
the information you provide is very good bro
Good to stay informed, I already know quite a bit about mining but now it became very clear to me with your explanation. I wish you good luck
Thank you so much for appriciating my work. I will continue to share like this.
My dear you have clearly highlight the overview of Cryptocurrency Mining. Yes , I strongly agree that steem is the native currency of Blockchain Platform. So it can't be mined traditionally as we mined bitcoin. But it's method is a bit different from other mining . Stakeholders are responsible for this. There are indeed 21 witnesses who are producing blocks in after every 3 seconds. So in this way it can be mined or creat.
Yes , there are legal Restrictions in our country that's why it's banned I iur country. Thank you for sharing your informative post with us. Good luck for the contest.
Hello sister, mere post par acha tabsara karny k liye apka bht bht shukria.
Sun kr AchA Kaha brother k ap ko mera comment psnd aaya. Jaxak Allah.
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