It's another wonderful time to be here. Thanks to the Steemit crypto academy for yet another wonderful week of learning about cryptocurrency. I've been enlightened the more about the crypto ecosystem since I've joined this academy. For this post, I've learned about
Cloud Mining from professor
@besticofinder where he continued on
Introduction to cryptocurrency mining. This post is centred on the task given and I will attend to it to really show I understood the professor's lecture.
Let's talk briefly about cryptocurrency mining before moving to cloud mining.
Cryptocurrency Mining
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Before blocks can be added to the blockchain, it has to pass through some verification stages, that's how cryptocurrency transaction blocks comes in using miners for the operation of verification. In detail, cryptocurrency mining is the process of using certain computers to verify cryptocurrency transactions, build blocks and add the successfully built blocks to the cryptocurrency ledger otherwise known as blockchain.
Miners are the people dedicated to this task whereby they solve certain mathematical complexes to verify transactions in the quest to build blocks and add them to the blockchain (ledger). And the process of mining has some difficulties experienced by the miners such as; hard complexes that takes time to solve, high power supply requirement, vulnerability to cryptojacking and many others, as I've noted it in my Week 4 task on Cryptocurrency mining.
Cloud Mining
Cloud mining is the process of cryptocurrency mining whereby users utilizes what is known as Hash power to mine on platforms that operates a remote data centre with shared processing power, in this case, miners registers on the platform and select the desired package through the purchase of Hash power for any preferred cryptocurrency they intend to mine.
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Cloud mining provide all the required resources for mining and miners only need to register with the cloud mining platform, select a package and start mining as they wait for the contract end and take profits from their investment.
Best Cloud Mining Platforms
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I’ve made a series of research and found out there are many trusted
cloud mining platforms out there. It’s important that users get familiar with the legit ones before
making a decision to sign up on any. In my research, I came up with a list of trusted cloud
mining platforms, examples are; Genesis mining, Crypto universe, HashShiny, Hashing24, IQ mining, ECOS, Hashflare, BeMine, Shamining, Eobot. These are awesome cloud mining platforms and I will take my time to explain a few of them.
ECOS
ECOS is one of the largest and trusted available cloud mining
platforms which came into existence from Armenia in the year 2017. ECOS has so many users on the platform that has joined cloud mining through them with good reviews from the public and that makes them a reliable platform anyone can decide to join. According to research, a miner can buy hash power with the minimum of 125 USD.
HashShiny
HashShiny is one of the biggest cloud mining platform for Bitcoin
mining and other cryptocurrencies available in the cloud mining world. HashShiny was developed in 2017. The developer of this cloud mining platform claimed to have integrated many of the new age technology to enhance effective mining process. A lot of miners operate on the platform and that has given them a good review in the cloud mining world.
Genesis mining
Genesis mining is one of the largest and earliest cloud mining platforms that came into existence in the year 2013. It offers cloud mining for Bitcoins and Altcoins and has a very large volume of miners on the platform and according to research, miners on the platform are up to 2 million in number. Users go for preferred package according to the purchased Hash power to start mining on Genesis mining.
Merits of Cloud Mining
There are many merits associated to the cloud mining and a few of them will be discussed below;
High power requirement to setup the hardware for mining was eliminated. Many miners are limited in efficiency because they often unable to provide the required power to keep their hardware working. This issue was solved by cloud mining.
Miners don’t need to solve hard complexes. Miners are sometimes slower in the process of solving hard complexes that is required to build up a block and add it to the blockchain, which sometimes give them not much in return as much time has been wasted on solving the complexes before having a breakthrough. With cloud mining, miners only need to buy hash power, select a package and start mining.
Cloud mining eliminates the issue of cryptojacking, with a very high security level in the system and this makes miners asset to be very safe and secure in cloud mining.
Demerits of Cloud Mining
Just as the cloud mining has its merits, there are demerits associated to it as well and some are discussed below;
Miners can only have access to their assets at the end of a contract. In cloud mining, miners can’t take out their assets until the contract expires which means there is no room for taking one’s assets for an urgent use as it can only be taken at the end of the contract.
The mining pool works on a centralized blockchain, miners only have access to password of their accounts and not the private key. This render the miners limited control over their assets.
Profits expected are sometimes limited depending on the current price of the asset a miner is mining at any point in time, which means the profit of a miner can be so reduced if the price of the asset goes down beyond the expected.
I am well equipped with cryptocurrency knowledge after attending
this lecture and it’s my joy that I am able to attend to the task perfectly, I believe. Thanks to the Steemit crypto professor
@besticofinder for the great lecture. I look forward to participating in subsequent ones.
Regards; Cc: @steemcurator01 , Cc: @steemcurator02 , Cc: @steemitblog , Cc: @besticofinder
Hello @temitopef ,
Thank you for submitting homework task 5 ! You have done a really good job !
Yes , this is a very significant advantage. Most of the countries electricity cost is really high. This is a good solution for them. Nice work [7]
Thank you
Thank you so much professor @besticofinder. I hope to learn more from you.