mining

Cryptocurrency mining

Process description

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:

  1. The "Noda" is defined, which introduces transactions into the blockchain. Thus, it cancels the possibility of fraud during the transfer of cryptocurrency assets.
  2. There is an exact, but anonymous fixation of all the implemented crypto-transfer.
  3. The system carries out crypto-emission for distribution of "coins". Among modern coins, there are those whose emission limit is limited – for example, Bitcoin; and those who do not have it – Ether.

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:

  1. Digital mining-"farms". Several (an average of 6-8) of powerful video cards that are connected to the power supply. It is inconvenient to keep a digital farm, as it is a big bill for electricity, a constant buzz, a high level of heat transfer. It is possible to independently select the video cards for the mining "farm", or you can order it from professionals who will calculate the most effective set of video cards for a separate cryptocurrency. Read more.
  2. "Asics" for mining. Specialized computers that are designed to handle many cryptographic algorithms in minimum time. "Asics" use one specific cryptocurrency for mining, and, as practice has shown, they are much more effective than mining "farms". Read more.
  3. Cloud-hashing or cloud-mining. The process of obtaining coins occurs on the leased computing power of individual companies. To start cooperating with such companies it is necessary to buy a contract for the required computing volume. Often a company may be in another country or even on another continent. Therefore, it is important to make sure that the cloud-hashing project is not a fraudulent HYIP. Read more.
  4. The hidden form of obtaining coins. Running a virus program on someone else's technological means with the aim of their hidden exploitation for the fastest possible search for the Nonce number. Read more.
  5. Android-Mining. Establishing a program for mining on a phone or tablet. But as practice shows, this form cannot compete with others. And the results of the work done, regardless of the type of "coins", are almost always zero. Read more.

Mining ranking

1.

Currency: BTC, ETH, DASH, LTC, XMR, ZEC

Contract Price: 285 USD

2.

Currency: BTC, ETH, DASH, LTC, ZEC

Contract Price: 1.8 USD

3.

Currency: BTC

Contract Price: -