Crypto Academy Week 5 Homework Post for [@besticofinder] | Introduction to Cryptocurrency Mining : Cloud Mining
The term Cloud Mining consist of two unit words that can be defined separately; Cloud and Mining.
Cloud or Cloud Computing is the availability of IT resources over the internet. The cloud as a word is a metaphor for internet. The cloud computing technology has made numerous number of IT resources available to people who does not have or cannot afford the infrastructures needed to perform a desired function.
The cloud technology provides services such as computing power, storage and databases. These services are made available by a company known as the Provider. The company owns and manage the infrastructures and grant lease to users on demand. The user in turn pay fees for using the services.
Mining on the other hand is the process involved in generating new cryptocurrencies such as Bitcoin. In the bitcoin blockchain, the process of mining requires miners to solve a computational cryptographic problem in order to add blocks to the chain. This in turn earns them new bitcoins. These miners need powerful computers in order to solve these cryptographic puzzles. This end up as a competition on the network whereby the first to solve the puzzle earns the coin.
Thus, how powerful your computer is or its computating power determines your chances in the game. These competition shut out miners with less powerful computers- so unfair.
However, here comes the cloud that set the table rightly. Cloud Mining has seen to have everyone accessible to the wealth of the cryptomines. In this case, you don't need to own the supercomputers or any other extra-powerful mining software to have a stand in the mines. These infrastructures are established in the cloud already and readily available on demand to anyone.
Cloud mining is accessible through the internet with charges. The user does not need to have any special technical knowledge or management skill. The computers and the computing softwares are stationed at the providers farm where the real work is done. The provider manages the facilities as it leases out a part of the system to the user to control.
In cloud mining, certain capacity of Hash-power is leased to the user as demanded. This help the user mine remotely mine at his end. The Hash power or hash rate is the power of the computer used in mining. This defines the speed, efficiency and productivity and thus determines the probability of creating a valid block in the blockchain. Its measure can be expressed in multiples such as kilo, Mega, Giga, Tera hashes per second. For example 1KH/s, 1MH/s, 1GH/s etc.
There are many companies that offers cloud mining, some of which are as follows:
- IQ Mining is a cloud mining company based in Europe. It offers its contracts over a period of time: 1year, 2years, 5years or Lifetime and gives its return (payout) daily. It is accessible in five languages (English, French, Spanish, German and Russian). Below is an available (as at time of writing) contract for the SHA(Secure Hashing Algorithm)-256
screenshot fromIQ Mining
- Genesis Mining is a cloud mining company founded in 2013. It has the largest hash power for altcoins and bitcoins. It offers packages of different plans to a desired cryptocurrency (e.g Etherium or Bitcoin). Below is a sold out package on the Genesis Mining Platform.
screenshot fromGenesis Mining
- Hashing24 is a cloud mining platform that focuses on bitcoin mining only. It is based in UK making industrial cryptocurrency mining available to everyone. This platform is flexible when it comes to choosing a plan. This means you can easily customize your plan to suit you. Below is a format of a customizable plan available on Hashing24.
screenshot fromHashing24
Many cloud mining platforms have a user friendly interface and easy to operate. You can easily execute your function in these units:
- Register
- Choose a plan
- Pay for the plan
- Expect your rewards.
Other notable cloud mining platforms include: Bitcoin Pool, Hashnest, Shamining, ECOS, Crypto Universe, Hashshiny, Hashflare, EOBOT etc
Advantages of Cloud Mining
- Cloud Mining makes mining accessible to everyone either to earn or taking it as a hobby.
- It serves as a form of investment whereby you invest your money for a provider to mine for you with an expected return per time
- There is no installation of a mining rig. Thus, no installation cost or maintenance cost.
- You don't need special technical knowledge to operate on the platform. It is not needed. The provider handles the facilities.
- No fear of loosing your equipments due to fire outbreak, technical fault or depreciation.
Disadvantages of Cloud Mining
- Most of the cloud mining companies have rigid packages and might be costly
- The facilities remains the property of the company. The user own the function and not the asset. Thus the user doesn't have an asset to liquidate.
- Some provider company might run out of business and thus might not be able to meet the promised return to you
- Amidst legit providers, there are scam companies that claim to offer cloud mining services with high profit return but end up running away with customers investment. It would be unfortunate to fall into their hands.
Conclusion
Cloud Mining in simple expression involves you giving your money to a service provider to mine Cryptocurrency for you using his own equipment with a promised return over a period of time. The internet has made this network effective as anyone from any part of the world can be a part of the mining community.
Thank you
@besticofinder
@steemcurator01
@steemcurator02
