Steemit Crypto Academy Contest / S9W5 - Cryptocurrency Mining

Hope you all are doing well and enjoying the best moments of your life. This is me @shahid2030 from Pakistan and you are here reading my post. You all are welcome here from the core of my heart.

The topic of the contest of this week is Cryptocurrency Mining. A very debatable, and door to door discussed topic. Being a crypto trader it's a golden chance for me to express my views on it. Let's move toward our concern topic without wasting your precious time.

The above question have various parts. Let me dealt them one by one for your clear understanding.

Following steps are followed for a coin to be the part of transaction history.

Transaction:

Transaction is the first step toward generation new coin. These are then collected in the form of block chain.

Hashing:

A highly advance computer can only do that. The miners solve different calculation and find a solution for it.

Proof of work:

Proof of work is the solution find out by the miners.

Block verification:

The proof of work is verified by other participants here to check it's authenticity and accuracy.

Block reward:

Once the proof of work is verified, the miner is rewarded with a give crypto currency/coin.

This block created now become the permanent part of the Blockchain, and added to the transaction history.

Ofcourse steem can be mined, because a coin doesn't sustain if it stop it's mining. But the process of mining of Steem Coin is changed from other major coins like Bitcoin, Ethereum BNB etc. They follow the "Proof Of Work" operation, while Steem coin follows "Delegated proof of stake.

Let me give you a brief detail how a steem coin can be mined.

Steem works on a new art of Blockchain technology know as Graphene. It follows "Delegated proof of stake"(DPOS) . In this system the miners are replaced with "Witnesses". Through this system new blocks are created.

Let me tell you that, Every Steemit account has the ability to become a witnesses, and it has the ability of creating new block on Blockchain. Every three seconds a new block is generated this way. We have 21 Witnesses Nodes and they created 21 new block in just 63 seconds.

Steem Blockchain unlike Bitcoin or any other Coin doesn't gives 100% new generated coins to the miners. It gives 10% as a reward to witnesses, and 90% coins are distributed amoung the Content creator, Curators and Steem Power Holders.

Talking about mining, we have different means of mining. We can create new blocks to the Blockchain system through different ways.

1) Proof Of Work (PoW)

2) Proof Of Stake (PoS)

Proof Of Stake (PoS)

3) Delighted Proof Of Work (DPoW)

4) Proof Of Authority (PoA).

Their are certain other hybrid methods of mining too. They are modified and specified for their network design.

Important Note

Mining is not always profitable for everyone.It needs a lot of idle situation for it. For an instance you need a cheap ASIC, a cheap electricity an cold place. Do determine your profit in mining their is a simple formula

For example; I am mining 100 steem worth of almost $18. If my expenditure on it is less than $18, it's mean I am in profit. While on the other hand, if the situation is opposite, my expenditure is more than my the value of coins I am mining it's mean I am in loss.

Despite of being here in crypto for last 4 years, I have never been involved crypto mining. I didn't do any such kind of professional mining. I know what are the requirements for it and how we can mine it but still I am aside from it. I can't support it financially, and their are certain other problems with it in our country. It's declared illegal by the government of Pakistan.

I am just doing trading here and all my focus is on it. Trading is also as benefitial as mining if you are expert in. It's too good if You can do analysis, and market reading.

It's financial advantages

In crypto mining is the only way of generating and creating new coins. It gives the miners reward of their hardwork. Mining can Leads to more jobs creation. It will help grow the technology sector if people are investing in computer, buying graphic cards, making mining farms, buying hardware etc.

It's benefit to the crypto world

Mining increases the reliability of the crypto currency. Non of the crypto can sustain without mining. It increases integrity of the transaction with in a Blockchain network.It motivates the miners and they use their computing system to make secure, and develop that currency.Mining helps making the crypto world decentralized.

Ming crypto currencies is not a piece of cake. It needs alot of hardwork, experience, investment, a proper set up. You may have to work 15/15 hours a day. It is a business of passion, hardwork, dedication, and consistency.
Let me give you a brief note on what are major challenges one can face in mining crypto currency.

Legal issues

Crypto mining is banned in almost all part of the world. Their are very less countries in which it is legalized. In most of the countries even crypto trading is banned. In my country Pakistan it is also banned. Neither you can mine it, nor trade.

Power supply

It needs a huge power supply of 220 Volt. In most cases it is something 110 or 120 volt power supply at residential areas, so you have to manage your own power supply for it.

Internet Connection

A steady internet connection with high power/range is needed for it. An Ethernet cable internet connection is considered as favorite for. One can use Wifi for it, but it's not that much reliable.

Vintelation or Air flow for cooling

The graphic card or miners generate alot of heat. Their should be a proper vintelation system for to keep cool. It produces that much heat that you may use it for warming your room in winter. Mostly people use an air conditioner (AC) for it.

Loud Noise

The graphic cards use in mining produce a loud sound. They proud upto 80db sound each. For an instance you have installed 15 graphic cards then just imagine the noise of it ( 15 × 80 = 1200db)

This is all about my post. I hope you guys have learned something from it, and you like my analysis about crypto mining. May I have missed something you can make me correct in the comment section. See you soon with a new amazing and interesting topic. Till take care.

I would like to invite @sairazerin @adilkhann @nadiaturrina @moyeon to participate in this Contest. THANK you