Contest !! || Crypto mining fundamentals

Hi everyone,
It's another day of the week and I'm delighted to participate in this contest today organized by @khursheedanwar which talks about Crypto mining fundamentals. I will be making my entry below so read through it and drop your valuable comment as it will be appreciated.

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- Write any three primary purposes of crypto mining?

Before going into the three main purpose of mining, I will like us to firstly define what mining is all about. So the first question should be what is mining or share your understanding of the word mining.

Mining of crypto currency in my little understanding can be seen as the process of minting new crypto asset either through the POS or POW algorithm.

This means that to get new tokens from any crypto asset, you must pass through the process of mining the asset. Currently there are many crypto asset that are being mined such as the OEX from the Satoshi app, AZC from the Azcoiner app and many more.

The primary purpose of crypto mining to me are as follows.

1. To create new token and make them available for use. Since miners are always rewarded with the newly minted tokens, they always get their share of reward

2. To validate the block of transaction within the ecosystem this will erase the issues of double spending

3. Security of the network is one of the major purpose of the miners. As they validate transaction they ensure no fraudulent acts is seen within the blockchain.

- What is the role of hash functions in crypto mining

In crypto mining, the role of the hash function is to secure the account or details of the user from hackers. To hash a password means to change it into a string of letters and numbers which when converted back gives us our own understandable password.

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In Steemit, it is difficult if not impossible to be able to know the posting key or private key of your Steemit account offhand and that is why we always copy and past. Also, when imputing this password, you will always notice that it changes to ****, this is because it securing your account details.

So hash function in the crypto mining also helps to secure our mined asset so that it won't be easily stolen by the various hackers.

- How proof of work and proof of stake mining can be differentiated?

In proof of work (POW), a large or computational power is used to mine asset. This means that you must have some devices that you use to perform some computational process and those that work faster and more get more reward as you are competing with others miners to see who validates or solves the mathematical puzzle before the other.

The case of the proof of stake (POS) on the other hand is different because here you are going to stake some asset to earn a reward and the higher your staked asset the higher your reward. Just like in Steemit today, when you have a higher SP, you will have a higher curation reward when you vote.

I want to invite @bonaventure24, @dave-hanny, and @shiftitamanna, to join the contest in this community and share their entry participation.