Currency: BTC, ETH, DASH, LTC, XMR, ZEC
Contract Price: 285 USD
In the modern world, cryptocoins have become not only a fashionable trend in the financial sphere, but also an effective tool for quick earning in the Internet network. In this regard, the mining of the cryptocoins (production process) is at the peak of its popularity.
Mining is one of the basic differences between a cryptocoins and other options for electronic money. Many people mistakenly believe that mining is a synonym for issuing cryptographic coins. But in fact, this process has much more functions and features. "Mining" is a word from the English language, which means the process of extracting minerals from the ground. Often the term is applied to the description of the activity of miners.
In the case of cryptocoins, the modern etymological meaning of the term differs significantly from the original one. The process of mining in the crypto-sphere is a complex digital process of algorithmic computation, which is necessary to maintain the timely and efficient functioning of the blockchain technology.
The process of mining is carried out due to the formation (generation) of new blocks in the blockchain. It also acts as a security guarantor, as it prevents duplicate blocks from appearing.
Thanks to the mining following actions are implemented:
Each transaction that was executed in the cryptocurrency blockchain is formed and "recorded" in the common "Order Book" due to the work of the miners who are rewarded for the generated and closed block. Everyone who first entered a new item about previously completed transactions in the blockchain is rewarded with free coins.
Depending on the type of cryptocoins, the number of "prize" coins and the time of generation of the next block of blockchain – differ. The process of mining is realistic due to the computing power of the node. The more powerful the computing capabilities of the connected technology, the higher the probability of finding the number-parameter "Nonce", which is key for closing and recording the block in the "Register".
Nonce is a digital, mathematical product of computing a cryptographic algorithm based on the parameters of a new block, which the miner should find in certain time frames, and enter into the code name of the generated block. This number should be equal to or lower than the "Target" mark. It is worthwhile to talk separately about Target. This concept denotes the level of the total complexity of the mining of each type of cryptocurrency and periodically varies. The variability of the Target mark depends on how quickly the miners find the Nons number. The blockchain system automatically changes the difficulty level depending on the time of the previous Nonce-numbers and block closures. In the case of Bitcoin, the Target is revised every two weeks.
For high efficiency of mining is not enough ordinary computer with an average video card. And applications downloaded to the phone and do not bring results at all. In connection with the growth of the course of the cryptocoins, more people invest in powerful computing devices to fit the block first. Therefore, cryptocoin is more difficult to mine each day.
Today for crypto-mining use: