Crypto Academy Week 4 Homework Post for @besticofinder
It's yet another episode of the of the Crypto academy week 4 project and am so delighted to a part of it. Sincerely I want to appreciate @steemitblog for these wonderful privileged, I have really learnt a whole lot within these short period of time. I want to appreciate my very dear professor in the person of @besticofinder, sir you have seriously been doing justice to the task assigned to you, by given us a detailed explanation in a simpler way that we understand.
Today, I will be discussing on the topic Cryptocurrency Mining. Actually these is a very interesting topic most especially to us who are newbies in the Crypto currency world. Please follow me as we go through few of the things I have studied and learnt so far.
What is Cryptocurrency Mining
Many people have in one way or the other given definition based on their own point of view what exactly they feel is crypto currency mining. So today, after much research and studies, I have been able to come out with these as my own definition of what I understand by the term crypto currency mining.
Crypto currency mining is the process of acquiring crypto currency through the solving of cryptographic equations which will only be done or carried out by the use of a computer. All these activities is carried out in what we call Blockchain.
It's also important to mention here that we can look at crypto currency mining as the we gather crypto currency as a gift or a reward for a given task that has been completed
How crypto currency mining works?
These is really a question for all of us, if we are to talk about crypto currency mining, we should be able to understand the process at which these mining takes its root from. In these case we should first and foremost understand what is Blockchain and how does it work as well.
When talking about Blockchain, there are two things that are paramount i.e public key encryption and math. These will be explained in detail when next an opportunity as such is given to me. So now what is Blockchain? Blockchain can be define as a series of chained data blocks which have in it pieces of data.
Now let's consider the steps on how crypto currency mining works. I will be listing few of the process below.
- Transaction verification:- these is the first and most important thing to put under consideration when ever you are to talking about how crypto currency mining is carried out. Every transaction in the Blockchain must be verified before any transaction can be carried out.
- Transaction Record:- once a transaction is properly verified, it is kept in a record along with other transactions where it can not be immutable, these is just to avoid double transaction and also it helps the Blockchain to be consistent.
- Addition of Hash:- the hash generated is always unique and is meant for just a particular transaction. It can be use to trace they transaction at any point in time.
- Confirmation:- After few of these processes are carried out, then the entire task is completed, they miners have to verify the hash and then complete the entire transaction.
What is Mining Difficulty?
Mining difficulty simple refer to as the difficulty one experiences during mining crypto currency. Truth be said, if crypto currency mining is not a difficult task, everyone will take advantage of it and hence the value of bitcoin today will not be as it is presently. There is these saying that famillierity bridges contempt. Once you get too use to something, your regards towards that thing drops drastically.
What are the challenges for crypto currency miners ?
Because of the difficulty involve in mining crypto currency, miners also have these challenges to face almost on daily basis.
- Access to blocks via connectivity of network sometimes is an issue.
- Power failure is also another issue since almost all the devices use are electronic in nature.
- Scarcity of powerful devices to combat mining difficulty.
- Lack of fault tolerance in most of the devices use
- Lack of proper maintenance on or before breakdown of the machine.
These is just but a few knowledge I have been able to gather both from the lecture and they little research I just carried out. I am certain that if these project continuous which I believe will definitely do, I will be able to understand Blockchain in a deeper way.