Crypto Academy Week 4 // Cryptocurrency Mining // Submitted to @besticofinder

A well explained cryptocurrency mining lecture @besticofinder.

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Mining has always being part of our everyday lives, gold for instance depends on mining, mining entails digging or extracting hidden resources.

Cryptocurrency as we know operate on a decentralized ledger and requires no central authority to manage and operate it, unlike traditional banks where a centralized body oversees operation. Since it operates on a distributed ledger, transactions informations are available and stored in various computers.

Task 1

How crypto currency mining works ?

Cryptocurrency mining refers to the ability to gain cryptocurrency by solving cryptographic equations using a single or numerous computer systems, which involves the validation and organizationa of data blocks, and adding record to the blockchain ledger.

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The cryptocurrency blockchain is depend solely on transactions it receives. This transactions form the basis of the blockchain. Drawing more light from the examples you gave, assuming I am a cryptocurrency miner and my friend borrows money may about 1000usd, from my other friend to buy maybe a gaming soft or even anything and that friend decide to pay him using some amount of bitcoin and sends him a partial bitcoin. For this transaction to be completed, it must first undergo verification.

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This transaction are complied together and added to the list of other transactions to form a block. We need to know that records on the blockchain are immutable, they cannot be altered. When a particular block gets filled, headers are added, hashes also added, a header of the most recent block is now combined with an ounce to generate a new hash which needed to be verified by the miner node.

Miners validate to ensure the transaction is legitimate. It confirms this transaction by checking their hash.

Task 2

How crypto currency mining works ?

Mining difficulties implies the resources, tools that are needed to mine a block. It refers to the difficulty encountered in solving a cryptographic puzzle. Mining difficulties increase and decrease over a period of time. Difficult increase with more participant participating in the mining pool. This also reduces the reward distributed amount miners in the pool.

Task 3

What are the challenges for crypto currency miners ?

Problems of miners arises from too many miners, thereby reducing there distributed earnings.

Secondly, mining require a huge amount of power thereby increasing the cost of mining a block. Pera venture the price of cryptocurrency fluctuates, there are in serious lose. So they always need the price of cryptocurrency to continue surging higher so they can get a bounty reward from mining.

Cryptocurrency mining are prone to attack, though protected. It has a connection with the web and so it is not an exemption.

In conclusion, Cryptocurrency mining can be a very rewarding venture and it forms the bed Rock of cryptocurrency.

Thank you.