Crypto Academy Week 4 Homework Post for @besticofinder - Introduction to Cryptocurrency Mining
Hello everyone...... Today I'm going to make my Steemit Crypto Academy Homework task by professor @besticofinder , Lesson 4 : Introduction to Cryptocurrency Mining. The way to get cryptocurrency in general is to buy directly or mine. Buying cryptocurrency is an instant way, but for those of you who like challenges, you can mine cryptocurrency.
Cryptocurrency mining is an activity carried out to get a type of cryptocurrency, such as Bitcoin which is the most popular cryptocurrency today. Cryptocurrency mining is of course not the same as mining gold, coal, copper or silver. Cryptocurrency mining does not use heavy mining equipment, but uses computers. Cryptocurrency mining is done using computers with high computing power. Then it requires high electricity costs to solve complex computational math problems. The technology behind cryptocurrency is Blockchain, which is a block chain containing cryptographic components. In short, the user has to solve a math problem in order to receive cryptocurrency as a reward. The main purpose of cryptocurrency mining is to enable cryptocurrency nodes to reach a consensus that is safe and resists interference. The results of mining cryptocurrency are twofold. First, when a computer solves this complex mathematical problem on a cryptocurrency network, it generates a new cryptocurrency. Second, by solving computational math problems. Cryptocurrency miners create trustworthy and secure cryptocurrency payment networks, by verifying their transaction information. The flow of cryptocurrency mining starts from verifying whether transactions are valid or not, then collecting these transactions in one block. To complete the new block, a hash of the previous block header is required. Then it must solve the Proof-of-Work problem, and when a solution is found, the new block is added to the blockchain and propagated to the network. Because of this incredibly complicated process, it's no surprise that cryptocurrency prices are getting more and more competitive. In order to add block transactions to the blockchain, miners have to solve complex computational math problems, also called “Proof-of-Work”. Currently, bitcoin mining is so competitive that it can only be done profitably with the newest ASICs. Because when you use a desktop computer, GPU, or older ASIC model, the cost of energy consumption will exceed the revenue generated.
Mining difficulty is usually the longer it will be more difficult, because more and more people are mining. So that small scale cryptocurrency miners will experience difficulties compared to large scale and use the best technology. Mining difficulty is usually followed by an increase in hash rate, which is the amount of computing power on the network so that the time needed to create new blocks will decrease.
To do cryptocurrency mining effectively, of course, you must have sufficient capital, especially to buy the best mining equipment and pay for electricity usage. Actually it is an investment. Mining should be done behind closed doors to prevent robbery of the equipment used for mining cryptocurrency. Apart from that, security on the mining site is also very important, of course. Cryptocurrency mining is neither easy nor difficult to do. But if you are not an expert then, you better use the services of a more skilled cryptocurrency miner to do it. But choose a trusted miner so you won't be deceived and lost!
CC:
@besticofinder
@steemitblog
@steemcurator01
@steemcurator02
Hello @zheyeng,
Thank you for submitting homework task 4 ! It was an informative read !
Agree with this point. If you are doing a large investment .. you need the support from experts .. otherwise you will loose your money. Mining is something you should do with a proper knowledge. Nice work [7]
Thank you