What mining is how it works

Surely you have often heard of bitcoin mining, but exactly what it is and what we are talking about.

Obviously mining is associated with cryptocurrencies, especially with bitcoins and other crypto that have the consensus algorithm POW (proof of Work).

It was born with Bitcoin and has developed over the years, creating specialized companies only by mining.

One of these is the BITMAN company which specializes in the production of mining equipment and activities.

Mining is feasible only on cryptocurrencies with POW algorithm as bitcoins.

But what is mining

Mining (extraction) is a procedure that is practiced on certain cryptocurrencies in order to guarantee their operation.

Doing mining keeps the network, in exchange for a reward in that cryptocurrency where it is executed.

It takes place with certain computers specialized in doing complex mathematical calculations quickly called Asics.

These calculations are related to the resolution of each block of the blockchain, where they contain the transactions and the new cripovalutes.

Originally the processors of a simple pc were used but then with the increase of the transactions and the use of bitcoins it was passed to the video cards to then end up with the Asics.

There are, however, some Monero-type cryptocurrencies, which, by making updates to the network, such as the Fork, try to reduce the number of extraction from asics and encourage that from a video card.

Asics consume much more energy and heat up more easily than a video card but at the same time they develop much more computing power.

In Bitcoin, the Asics is the only one that allows to have returns because the network is so large that the video cards do not arrive.

How mining works

To undermine a cryptocurrency it must be with POW (proof of stake) algorithm, because it is the only one that allows to do this validation procedure.

Furthermore it is necessary to be part of a miningpool, that is a community of miners who combine their computing power to increase the possibility of solving blocks first.

As the bitcoin network increases, the chances of solving a block on their own are very low, so a miner joins the others and divides the reward.

There are so many mining pools including:

All these pools have the ability to undermine many cryptocurrencies in addition to Bitcoin, such as Ethereum, dash, etc.

To be able to do mining, you must also have software such as BitMinter that connected to the asics connect to the network of these pools.

The more shared mining has a lot of shared power, the more you are likely to solve block calculations.

To look at the power of the bitcoin network in each pool, go to BTC.com which can be reached here.

In addition to the miningpools there are also cloudmining services where a computing power is rented for a certain time and pools are mined.

There are different services such as:

 

All offer annual or biennial power lease contracts.

On the Mining

These units of measurements are used to measure the computing power:

  • Hash (H) = 1
  • Khash (KH) = 1000 hash
  • Ghash (GH) = 1 000 000 hash
  • Thash (TH) = 1 000 000 000 hash
  • Phash (PH) = 1 000 000 000 000 hash

A current asics can get to develop a power of 30 TH on Bitcoin, but this data depends on the network because the same can develop more power on other crypts.

This depends on the difficulty of the network as the higher the more the asics or video card develops little power.

In some Monero type cryptocurrencies, the unit of measurement in Sol is used which is equivalent to the hash.

                                                                    1 Sol =  1 hash

Going on WHAT TO MINE you can calculate the production on various crypts and so you have an idea of what you can undermine and how much power and consumption you would have.

Also on this site you can also see for each minable cryptocurrency all the data related to the computing power, the largest pools, etc.

I also advise against buying used asics or video cards because due to the temperatures it is stress they reach in mining, they may have little duration.

The electricity consumption they have is considerable and therefore it becomes convenient when the cost is very low.

Having a good cool seat increases the durability of the components.

 

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