Crypto Academy Week 5/ Cryptocurrency Cloud Mining //Submitted to @besticofinder
Happy new week sir and thank you such a wonderful lecture @besticofinder.
For the basis of our study, I will love to recap:
Crypto Currency Mining is the process where a computer / machine performs a task and earn cryptocurrencies. That task here is the process of verifying crypto transactions (solving mathematical equations ) and inserting them to the blockchain. So as you can see Crypto Currency Mining is the process which keeps these crypto currencies active by enabling their transactions. source
What then is Cloud Mining
Simply put, cloud mining is a third party kind of mining, which allows you to mine without necessarily having a hardware put in place for the proposed mining operation. A third party or a central party because they poses the hard and mining equipment, your duty is to engage them by acquiring a certain amount of hash rate which determines the speed or computational power.
A portion of the Incentives realised during this cloud mining process,is shared among the customers who purchased this hash rate and the central body or organization secures the balance for expenses such as power, ventilators, etc. (everybody gets paid).
With cloud mining any body, just anyone at all can become a miner if you so choose to be. From the previous class on mining, we agree that during mining pool, blocks are created, transactions are verified, new coin are created and eventually incentives are distributed based on how is first to solve the associated cryptographic equation. Becoming a miner is really difficult, all needed to do is locates the best platforms for cloud mining and acquire a partion of hash rate and you can become a miner.
Best mining Patform
There are Alot of mining platforms currently parading the crypto market, but care must be observed in selecting which to use. Listed here are some trusted mining platform for your consumption :
Cudor miner
Hashing24
Cgminer
Awesome Miner
Multi Miner
Advantages and disadvantages of Cloud Mining
In as much as we have advantages of the mining system, we also have some disadvantages which will be discussed here.
Some advantages of Cloud Mining are:
1)No educational qualifications
In cloud mining, you don't need to be a graduate to mine, you could even be deformed and still mine. No sentiment to mining, all you need is an software and a good number of hash rates, for a new user, a phone or source of internet connection.
Or I would say you don't need any technical knowledge of cryptocurrency mining, just choose from the list of platforms above and your are set to mine.
2)No hardware needed
Because of the availability of the central authority, you do not need any form of hardware as all hardware needed for the mining is provided and operated by the central body. All technicalities, software update is non of your business as the central organization takes care all of that.
3)Cost of operation reduced to almost Zero
As you don't have to buy hardware or anything for the mining process, you cost of operation will be minimal or nothing at all. Mining require very high computational power which will release alot of heat, this can be taken care of by the provision of fans, heat extractors, but good news, the central bodies are still in charge.
Talking about disadvantages of Cloud Mining:
1)Rising number of Scam
Cloud mining operates using an internet connection, it makes it vulnerable to attack. There has also being a rise in fake mining platforms, which end up not paying users,this makes it discouraging to users. Though the process of mining gives it protection against hackers and malware but it's centralized nature makes it not very consistent.
2)Low income from mining
Taking a recap from last week's lecture, we said mining becomes difficult when there are too many miners available in a pool which will also reduce the total amount distributed or shared amongst miners. In cloud mining, which is a centralized system, users are at the mercy of the central body organization managing the mining platforms. They are able to give a share to the users and keep some for their running expenses. It is therefore pertinent to choose wisely where you intend to mine your cryptocurrency.
Thank you for reading through.
See you next week Prof.