What is mining

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Today, cryptocurrencies are heard by many. The concept of cryptocurrency that blew up the Internet public has spawned a new industry in making money — cryptocurrency mining. Every day the number of miners is growing steadily, and it becomes harder and more labor-intensive to mine cryptocurrencies! Some time ago, it was possible to mine at home on just a home PC and earn a decent amount of bitcoins, but now for cryptocurrency mining you need special and expensive equipment and patches such as https://crypto-bears.com/amd-ati-pixel-clock-atikmdag-patcher-1-4-7-skachat/ , which increase efficiency.

Mining is also mining (from the English mining — mining) — the activity of creating new structures (usually, we are talking about new blocks in the blockchain) to ensure the functioning of cryptocurrency platforms. For the creation of the next structural unit, a reward is usually provided for at the expense of new (issued) cryptocurrency units and / or commission fees. Usually, mining comes down to a series of calculations with an enumeration of parameters to find a hash with given properties. Different cryptocurrencies use different computing models, but they are always long enough in time to find an acceptable option and fast to test the solution found. Such computations are used by cryptocurrency algorithms to provide protection against re-spending of the same units, and rewards incentivize people to spend their computing power and keep networks running.

In simple terms, mining is earning cryptocurrencies using the power of equipment (whether it be a personal PC or specialized mining farms). It is not always important and interesting for a beginner to know the «insides» of mining, it is important for him to understand how much he can earn with certain equipment. Or how much you can earn by purchasing certain equipment. In any case, usually the average miner does not get to the bottom of what is happening during mining.

The «explosive» growth of the bitcoin rate has spawned a whole wave of miners who want to make money on such a phenomenon as cryptocurrencies. Initially, they were very skeptical about cryptocurrencies, but they were able to prove their solvency, independence from external regulators (banks, states) and demand from large investors. Bitcoin’s success has led to the emergence of more and more new cryptocurrencies with new encryption algorithms. Among other options for mining cryptocurrencies (forging and ICO), mining is the most accessible to the average user, it requires less time investment (bought a mining farm, launched and mined).

Mining and cryptocurrencies

On the one hand, cryptocurrencies have spawned an activity like mining. On the other hand, the emission of new bitcoins is impossible without mining — new bitcoins are received as a reward by the one who generated the next block. That is, during mining, new blocks are generated in the blockchain, for each of which a reward is charged. It is sometimes difficult for a beginner to understand all the subtleties of mining, but knowing the basics allows you to understand the meaning of mining itself and the algorithm for calculating cryptocurrencies.

Mining pools

The probability of receiving a reward by a lone miner for a certain period of time is equal to the ratio of the power of his equipment to the total power of the network involved in mining. Those. when mining from a personal computer or laptop alone, the probability of getting at least some kind of reward even for a long period of time is very, very low. To increase the chances of getting a reward, miners are pooled. In the pool, each miner is looking for his own solutions for generating cryptocurrencies, without intersecting with other participants in the pool. Those. such operations occur in parallel and cover more data. From the point of view of cryptocurrency systems, the pool looks like a very powerful single miner. The reward is distributed among the pool members depending on the efficiency of the resources spent. Payments to the miner are calculated based on the standard options (shares) sent to the pool (blocks with a hash that would be suitable if the difficulty parameter was now equal to one). To find a block, on average, you need a number of standard options equal to the current difficulty.

The dangers of mining

The increase in the number of miners and the complication of finding blocks by tens of thousands of times led to the unprofitability of mining bitcoin on ordinary personal computers. Of course, there are other cryptocurrencies that are less popular, less expensive and less in demand. Perhaps mining them on ordinary PCs is even more or less profitable. For major cryptocurrencies, the capacity of a home PC is simply not enough, and as a result, electricity bills will discourage any desire to mine. In such cases, it is necessary to buy specialized mining farms that have sufficient capacity to recoup electricity, equipment and make a profit. Modern mining farms are compact in size, make little noise and consume the minimum required electricity.

Scammers also did not stay away from cryptocurrencies. Since it is almost impossible to steal cryptocurrency, they chose a different path — they began to create hidden mining programs that were installed with viruses on many personal PCs and used the power of computers to mine cryptocurrency. Major antivirus software companies regularly fight against these viruses.

Mining on video cards and ASICs

For Bitcoin and a number of other coins, special processors were created, called ASIC (colloquial — ASIC). But some cryptocurrencies, especially such popular as Ethereum (conversational — ether), are more efficient to mine using video cards. This pushed the main manufacturers of video cards to release a line of accessories for mining. Therefore, before you start mining, you need to decide on the currency (study the demand, price, price fluctuation charts) and only then select the equipment.

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