The mining of cryptocurrencies is an activity which is spreading more and more. While it was a very marginal phenomenon when Bitcoin was launched, it has now become a full-fledged industry.
Mining is a paid service that involves verifying transactions or performing calculations to create new copies of the cryptocurrency that is being mined.You can find a code that consists of numbers and letters. This is called a hash and it produces the next block in the transaction chain. However, this calculation is too complex to do by hand and requires computer calculation.
The more the cryptocurrency is mined, the more complex the calculation to find the hash As a result, the miners had to find new ways of working to keep up a good performance. So, now, to efficiently mine the most complex cryptocurrencies, and therefore those that require the greatest computing power, mining pools have opened.
How to mine cryptocurrency
To mine this cryptocurrency, you have to find the hash with the right combination. We must therefore test all possible combinations until we find the right one. The miner who achieves this receives a certain sum in cryptocurrency. However, minors generally encounter a number of difficulties:
Mining would be far too complicated to do by hand. This means that to mine cryptocurrency, you must either invest in computer equipment or rent it, in particular thanks to the cloud mining system. Before mining cryptocurrency, one must first invest one’s own money;
Only the minor who finds the hash is paid and all the others get nothing. So it’s a kind of race against the clock to find the right combination. This also means that it is the people who invest the most money and deploy the most means who are most likely to find the hash;
Some cryptocurrencies, such as Bitcoin, are victims of their success and have therefore become very hard to mine. For a minor to do it alone, it takes such an investment that it would be difficult to recoup.
Mining pool and bitcoin
Mining pool allows in particular being able to find hashes, which is highly rewarded. However, the earnings are also divided according to the importance of each person’s contribution. In addition, some pools offer to rent computing power, which allows you to avoid investing in expensive equipment. It will generally be necessary to subscribe to a subscription of around twenty euros per month, to which will be added operating costs of around 3 cents per day. Another advantage of this method is that you can use this computing power to mine the cryptocurrency you want. You can even change it if you find another, more profitable cryptocurrency. Here are the most interesting mining pools:
Bitcoin revolution is the most popular mining pool for independent miners. It is very effective and allows to mine around twenty cryptocurrencies. It also has its own software, very simple and intuitive.
bitcoin revolution log in allows you to mine cryptocurrency. Its big advantage is to offer little known cryptocurrencies which will be easier to mine and which can represent a great opportunity.
As mining is a rapidly developing sector, it is relatively logical to see a large number of innovations arriving on the market. Here is what these innovations offer.
The first of these innovations is energy rental. It is a process that allows you to invest by renting part of the electricity consumption of a mining plant. Once the factory is operational, you receive what the factory produces with the part of the consumption that you rent. The main advantage of this innovation is that if the factory manages to lower its electricity consumption or invest in more efficient equipment, your income will increase. So you only pay once and you will receive benefits for 50 years.
Therefore, miners must use a powerful computer to solve these calculations. Transaction validation corresponds to inclusion and timestamps in blocks. This allows newly validated blocks to connect to older validated blocks.
This channel has been updated and is accessible to all members of the network. The resulting dispersion allows complete transparency and immutability. Anyone can see the data available on the blockchain network.