Introduction to Cryptocurrency Mining | Steemit Crypto Academy | Lesson 4 | homework done by samuelj

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Introduction

The word crypto mining simply means the process of acquiring cryptocurrencies through the means of proffering solutions to cryptographic equations with the use of computers. This process takes into cognizance the validating of data blocks and adding transaction records to the blockchain.

In other words a cryptocurrency mining is a term that deals with the process of earning cryptocurrency as a reward for work that has been completed or done.

How does crypto currency mining work
1 Nodes Verifying Transaction
This aspect of crypto mining deals with a system where a miner transacts with another miner of probably a platform, here a miner sends either Fiat or his personally disposable crypto to another miner who has a crypto that the first party is looking for, so when the transaction is being made and the first party receives the crypto he went in search of, that is actually the concept of transactional crypto mining.

2.TRANSACTIONS BEING ADDED TO THE BLOCKCHAIN IN THE FORM OF BLOCKS.

Here miners try to work on puzzles in the form of harsh to find some correct answers, and when the hashes are found by the miner, then the node announces to all other nodes that he/she has found the mathematical or cryptographic problem and then the nonce is being added to the Blockchain as a block.

WHAT IS MINING DIFFICULTY

Mining difficulty can be seen or described as the process that indicates or shows how difficult it is to locate and make available the right hash or answer for a cryptographic problem on each block which are later added to the Blockchain due to the tendency of thousands of miners on the same tour.

THE DIFFICULTY MINERS FACE

1. IT IS ENERGY CONSUMING
   Due to the tedious task involved in crypto mining where the miner has to solve assiduously some cryptographical problems as to arrive to the desired answer, that makes it to be highly time and energy consuming.

2.VULNERABILITY TO CRYPTO HIGHJACKING
This is one of the aspects of difficulties miners face, where their mined cryptos are being highjacked because of the high sophisticated devices hackers use, so this poses a big difficulty to miners.

3.IT IS TIME CONSUMING
The time and energy required to mine is quite a great deal as miners spend lot of hours online trying to source for relevant materials needed to complete a particular task.

4.PLACEMENT OF EMBARGO BY THE GOVERNMENT ON CRYPTO MINERS

Another difficulty faced by crypto miners is the banning of legal trading of cryptos by miners. For example when the government of a country ban every legal agencies like banks and bank customers from either sending or receiving transfers from different trading exchanges, it really affects crypto miners.

Thanks sir @besticofinder for making me to go through such a research as this, as have not been able to go through a research as this untill a time as this.
Also am grateful to @steemitblog for setting up this informative community,thanks.

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