Homework Task 4 by professor @besticofinder crypto mining

Hi, thanks to @steemitblog will be completing my homework task 4 by professor @besticofinder.
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How cryptocurrency mining works?

With block mining, there is a need for constant and adequate energy supply as the mining process consumes lots of energy for maintenance for this reason there is a need for capital and energy supply in others to make mining activities running with interrupted Power supply also to run a full mining node special sophisticated software are needed to run or complete block transaction.
PoW proof of work mining requires such energy and high maintenance to keep running successful while with proof of stake validators are needed which requires less energy**

In other to set up a mining rig a miner will need GPU ( graphics processing units) or ASIC ( application-specific integrated circuit )

With the setup device successfully install mining process can be done seamlessly from a miner who needs to process a block transaction from a pending paid transaction, these processes are done very fast and sometimes depends on how fast a miner device can calculate and solve the mining algorithm.

When this algorithm solves the miner who solves the block transaction will be rewarded.

So in general for mining to work successfully GPU device needs to be set up which can be used to solve transaction blocks and finally get rewarded for solving that algorithm.

What is Mining Difficulty?

There is a certain time interval for the block to be produced Bitcoin for example has an average of 10 minutes to produce a block.

With these time factors and also the availability of multiple miners trying to validate block transactions with their software and mining devices there is a tendency for miners to experience shift or difficulty when verifying these block transactions which will now lead to having mining difficulty.

In simple terms, mining difficulty is when a miner software tries to find a block and the software tries to automatically adjust the block hash moving up and down which can lead to higher or lower mining difficulty.

What are the challenges for cryptocurrency miners?

One of the major challenges in mining activities are government officials regulations
These have been one of the limiting factors in crypto mining industries as most miners have been forced to change the location of their mining firm to another region that supports and approves mining activity.

Another challenge is the power supply to keep mining companies up and running 24/7 as mining needs uninterrupted power supply so as not to always keep generating the new block.

Thanks for stopping by.