Introduction to Cryptocurrency
One of the most important topics around blockchain bromine technology is mining cryptocurrencies. Each of us has heard, but not everyone knows what it is. Exactly: what is crypto mining? Is it worth mining digital currencies in 2021?
Probably each of us has heard about cryptocurrency mining. And rightly so, because it’s time to fully understand virtual money, you need to know what crypto mining is and why it is such an important part of the history of the industry. We have already written about mining while describing the Poof of Work algorithm, but today we want to explain all the issues related to mining cryptocurrencies.
Perhaps when you hear the term “cryptocurrency mining”, you imagine the gold rush of the Wild West. As it turns out, this analogy is not so far from reality. It is enough to exchange physical gold for cryptocurrencies, pickaxes for computer equipment, and digging in the ground for solving difficult mathematical puzzles. As with gold mining, not every miner is rewarded for mining (in the case of PoW-based cryptocurrencies, only the first miner receives the reward).
Cryptocurrency mining is a process in which advanced machines with high computing power solve complex mathematical problems. The key is the difficulty of the problems. They are so complicated that one unit cannot solve them (the entire network is required), and to solve them, they require extremely high computing power (hashrate). Solving each puzzle allows you to create a new block in the chain (blockchain), which most often translates into receiving a new cryptocurrency coin, e.g. Bitcoin, Ethereum.
How to start mining crypto?
Cryptocurrency mining differs from traditional mining in that gold miners extract the raw material that is already in the ground, while crypto miners create new resources.
Starting cryptocurrency mining is also extremely simple: just buy the right equipment and mine. Of course, you have to remember about a few key parameters: the computing power of the equipment, the price of the cryptocurrency, the remuneration for mining the block, the price of electricity and the difficulty of mining.
Our detailed articles can by found under Getting Started