Crypto Academy Week 5// Introduction to Cryptocurrency Mining (Part 2)// Submitted to @besticofinder
Happy new week sir, nice lecture from you today Prof. @Besticofinder.
Still on the introduction to mining, having understood mining as digging up cryptocurrencies by means of a device thereby verifying transactions and creating more token as well ensuring that the system is safe from hack and malware.
Task 1
What is Cloud mining
Cloud mining is very similar to the definition given for mining, only that it requires a thirds party for its operation. In cloud mining anyone can be a miner without having access to the computer and other mining hardware, making it possible to actually reduce cost on hardware, etc.
It is simply a mechanism or device to mine, e.g BTC, using a rented cloud mining computing power without even installing, operating the hardware and software directly. source
Anybody can become a miner, for just a basic cost, no hardware, nothing. With such mining, the hardware, software, computer and other equipment to could ensure an accurate mining is stored in the cloud.
It a centralized type of mining, since the mining process is handed over a third party. In our last lecture, we recall that during mining, new blocks are created, blockchain transactions verification are conducted and new crypto is introduce into system.
Hash power determines the speed and amount of cryptocurrency you are able to mine with a give period, you can become a miner by purchasing some amount of hash or computational power.
Best platforms for Mining
There are various platforms when talking about mining, in choosing a platform we must consider the flexibility in operations, it's compatability with other platforms as well as flexibility of the user interface.
Among other we have the best platforms as:
Kryptex miner
BeMine
Hashing24
Awesome Miner
Discuss the Advantages and disadvantages of Cloud Mining
No system is 100%, so these are the advantages of Cloud Mining :
1)Reduced operating cost, no heat, no loss
In cloud mining there is no need for hardware equipment as it is entrusted to a third party agent to manage. Mining usually involves larges components, computers which generate heat alot, with cloud mining, there is no need for all that.
2)Hardware not need
Hardwares are not needed in cloud mining, this will reduce the cost to almost zero. It also saves times as you don't need to go studying for the best equipment like ASICs or GPU which are employed in cloud mining. No fear or Need for updating softwares, etc.
3)You need a technical knowledge
In cloud mining, no technical knowledge is required. You don't even to a study to start mining, mining software can be found online, with the best states above, incase you want to start mining today. No mining tool knowledge required, all need is to create an account and buy the required hash rate and you are good to go.
For Disadvantages we can say:
1)Low earnings:
The fact that it is centralized, makes the system at the mercy of the third party operators. They have full control of your earnings and may decide to give you just deem it fit to them. It also provide low revenues especially for those converting their coin to fait. It therefore favors only centralized networks.
2)Alot of Scams arising:
As awareness of cryptocurrency increases, there are alot of scam organizations today around the world, scamming users in the name of mining. It is therefore our duty to research on companies we employ for mining purposes.
3)Restricted number of coins
In cloud mining, you are restricted to mining just a coin, this is really good for miners as there sole aim it to make profits.
I hope this was helpful.
Thanks Prof. @Besticofinder, see you in your next class.