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HOME WORK TASK 4:

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(1) How crypto currency mining works ?
(2) What is Mining Difficulty ?
(3) What are the challenges for crypto currency miners ?

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INTRODUCTION :

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Hi steemains hope you all are good and enjoying your lives. I take lesson four given by @besticofinder, in his lecture the explained about mining of Cryptocurrency, difficulties of mining and challenges for crypto currency miners.
Now I'm inviting you to review my homework for task4.

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ANSWERS TO THE TASK 4:

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Q1. How crypto currency mining works ?

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Cryptocurrency mining : Cryptomining:And how it works?

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Source

The process where a computer or machines performs a task and they rewarded by cryptocurrencies is known as "Cryptocurrency mining" . The task here is the process of verifying crypto transactions and inserting them to the blockchain. So it is the process which keeps these crypto currencies active by allowing their transactions.

A process in which transactions for different forms of cryptocurrency are checked and added to the blockchain digital ledger is "crypto mining"._
A cryptocurrency miner needs a computer with specialized hardware in order to competitive with other Cryptocurrency miners.

Anyone can earn cryptocurrency without having to invest money for it by mining . Bitcoin miners receive Bitcoin as a reward for completing "blocks" of confirmed transactions which are denoting to the blockchain.

The miner who finds a solution to a complex puzzle first, and the changes that a contributer will be the one to find the solution is related to the portion of the total mining power on the network are paid by mining rewards.

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Q2. What is Mining Difficulty ?

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A measure of how difficult it is to mine a Bitcoin block, or in more technical terms, to find a hash below a given target is Mining Difficulty . A high difficulty means that, making the network more reliable or fixed against attacks, it would take more computing power in mining the same number of blocks.

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Difficulty is a corresponding to the amount of resources required to mine bitcoin (BTC, -2.2%) that move up or falls down based on the total number of computing power used by the network, known as its hashrate.

Despite of the number of miners, still takes 10 minutes (600 seconds) to mine one Bitcoin. It will take 72,000 GW (or 72 Terawatts) of power to mine a Bitcoin provided by ASIC miners.

Skyrocketing is the unit of the difficulty to mine Bitcoin units. Due to Bitcoin halving the mining rewards becoming thinner. the mining rewards were reduced to 6.25 BTC per block.

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Q3. What are the challenges for crypto currency miners ?

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CHALLENGES FOR CRYPTO CURRENCY MINERS:

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The main challenges for a crypto miners are

• high electricity consumption
• highly advanced and expensive hardware
• overheating of system

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high electricity consumption :

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For mining a Bitcoin miners use computers or machines and the need power of electricity and the computers are high-powered,and they used a lot of energy. An estimated amount of128.84 terrawatt-hour per year of energy is consumed by bitcoin mining — more than entire countries such as Ukraine and Argentina, UAE
In "Mining of Cryptocurrency" the heavy computer calculations are involved to verify transactions,so used high amount of power and is unlikely to fall untill the value of the cryptocurrency depreciation.

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highly advanced and expensive hardware :

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The hardware that are used in mining are basically use to make money so its obvious that they are highly expensive.
I'm giving you the prices of three hardware used for mining. ___

• Antminer S19 having95.0 TH/s hash power and its price is $2,767.
• WhatsMiner M30S++ having 112.0 TH/s hash power and its price is $2,850.
• WhatsMiner M30S+ having 100.0 TH/s hash power and its price is $2,550.
  These are very expensive and if any issue occurs, not easy to replace them immediately because of their high price.

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Source

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over heating of system :

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For mining computers /machines are used for 24hr/7days so continuous usage of hardware make the system heat up and I think it's a big challenge for miner. Some area has hot climate so system becomes hot early. Therefore to mentain temperature needs a cooling system or installation of AC required, which also need electricity so it's not cheep.

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Mentioning respected @steemcurator01, @steemcurator02, @steemitbelog and @besticofinder for their support.