Contest Alert || "Mining Basics"
Hello dear friends! Well come to my post. How are you all? I hope you will be doing well by the grace of Almighty Allah. I'm also fine and enjoying my day. Today I'm here to participate in this amazing contest which is organized by @khursheedanwar in this Steem4bloggers community. The topic of this contest is "Cryptocurrencies Mining Basics". So let's start without any more delay of time.
What is mining pool? |
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Friends as we all know that the landscape of cryptocurrencies are very vast which provides us a lot of opportunities of earning through the cryptocurrencies in the form of staking, investing and mining. Among all of them the mining of crypto currencies has a potential of providing passive income to the people. Actually, the mining is a process in which a user contribute to the blockchain network, solve complex mathematical puzzles, validate transactions and in return get the reward.
When certain amount of cryptocurrency is mined it adds a new block to the network and make it more stronger. But the mining pools are the groups of crypto miners who mine cryptocurrency in the form of groups and contribute to the network collectively. And then when they mined a certain block they distribute the mining reward among them on the basis of the amount when the each miner has mined.
What is mining rig? |
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In the mining of digital currencies, the mining rig is a special mechanism designed to solve the complex mathematical puzzles and solve various tasks computationly and then contribute to the security and decentralization of a blockchain network. It is consists of various types of strong computer systems as it has to solve the complex puzzles and perform various tasks. Besides this it needs to have a strong CPU, AICS, GPU, mother board, power supply and cooling systems.
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In the mining rigs the efficiency of these computational systems matter a lot because if the systems are weak they will remain unable to solve the complex mathematical puzzles and complete other tasks. It may also disrupt the ongoing process and eventually the mining may stopped which results in decrease of the mining rewards. But when these systems are strong their efficiency increase.
What is solo mining? |
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As from its name, when a miner mine Cryptocurrencies independently it is known as solo mining. In that type of mining that single person is responsible of his assets, losses or gains from the mining. But in most of the cases it is considered less secure in terms of security and efficiency. This is because in solo mining we need to have a huge mining amount to earn a huge rewards but when we mine in the form of mining pools our reward may increase as our Portfolio increase with the contribution of other miners.
So friends that was my entry about that topic and I hope you will enjoy reading it. Now it is a time to say goodbye to everyone and I want to invite my friends @nooruleman, @jiya99 and @kuhinoor to take a part in this amazing contest.
salam dear ur post is very informative and amazing written. uh did a superb job explainning the basics of cryptocurency mining mining pools are rigs and solo mining. uh are clear and easy to understand creating it helpfull for both beginers and experienced crypto addict . best wishes for uh...
W. Slam My friend! I'm glad to hear that you liked my entry and it was helpful for you. And thank you so much for visiting my post and leaving a beautiful comment 😄
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