Homework 4 : Cryptocurrency Mining, Mining Difficulty and challenges by @okoyeamaka11

Hello steemians it is another part of this week's lecture by @besticofinder, if you want learn from his lecture click here and it will take you to the post.

In the lecture he discussed Introduction to Cryptocurrency Mining and in the homework task I am going to be explaining what is Mining Difficulty and what it's challenges are in a way a beginner would understand well.

What is cryptocurrency mining?

Crypto currency mining is the reward collected for the work that has been completed.

Cryptocurrency Mining started in the 1990s, when there was a desire for methods to perform a secure electronic peer-to-peer (P2P) transactions without the need of a central Authority to check the transactions. This was made possible with the emergence of bitcoin in 2008 by Satoshi Nakamoto. Bitcoin utilized two new intertwined technologies : Blockchain and Mining.

How crypto currency mining work?

Source

If you have a good computer and you want to go through the process of mining there are certain tasks that need to be completed to obtain some cryptocurrency. Sometimes you mine in seconds, hours or day depending on how the particular asset that you are mining works, the task that you need to complete is called proof of work and they are mathematical equations which need to be entered into the blockchain.

What is Mining Difficulty ?

Difficulties in maintaining mining in a blockchain. Mining Difficulty is a measurement unit used in the process of any Cryptocurrency assets mining and a certain amount of resources is required to compete for mining assets. This usually happens when a cryptocurrency becomes very popular like Bitcoin, Ethereum, or Litecoin and it's participants increases. These participants compete against each other for limited block rewards assigned to each tasks.

What are the challenges for crypto currency miners ?

This bullish market has also introduced more challenges.

1). High Energy cost: it is reported that mining of Bitcoin consumes more power than 150 country so obviously it's only in the developed country that you can find people who are mining crypto currency.

2). Protecting your mined crypto: nowadays hackers has improved their ways of hacking. So I will advice that you get a very powerful wallet and get a privacy supported browser like brave and also protect you of with an anti-malware shield.

Conclusion

Thanks for reading and I hope i explained it to your understanding anyway if you are going to go into mining now you will need a lot of capital, i hope i explaned it very well Please @steemitblog and @besticofinder here is my task entry and thanks for reading.