Mining, what is it and how does it work?
Many people who have heard of cryptocurrency have heard of such a concept as mining. It involves mining cryptocurrency using special equipment. And last year it caused some difficulties, because the video card market collapsed and there was a noticeable shortage of even budget or outdated models. So this option has started to bring in some good profits again. But it is important to understand how the process works.
How does mining work?
The essence of the process is that PCs, which are located far away from each other, solve all sorts of mathematical puzzles, and in the process bitcoin appears. And once the hash has been recognised, over time the transaction simply closes, and after that the miner goes on.
So, in essence, mining is the activity of creating new structures, most commonly new blocks in the blockchain. This is necessary for the normal operation of a cryptocurrency site. And by creating a new such unit, a reward can be earned.
And if we look more closely at the mining process itself, it simply consists of a series of calculations, with a series of characteristics enumerated in order to identify a hash with the necessary parameters. And at this point, a wide variety of calculation models can be used, but it takes a lot of time, because you need the optimal result.
How do I get started?
- You need to find your own pool. This is a community of miners, that is, people in groups, who connect the equipment in one network to increase the efficiency of work.
- Install special software. In fact, there are quite a few applications, so you can take some time to search and download the one that suits you best.
- Get an appropriate wallet. Money will come there. There is a full-fledged instruction in the site settings, so this won’t be a problem.
- Start working. You can use a PC or a laptop. The devices are connected to the common pool and you can collect your share.
Why use a pool?
There are actually several reasons why pools were formed. The first is the realisation that there is a problem with mining the coin, so it reduces the profit margins. And often they rent full premises and make farms for mining, and there’s an opportunity for other users to join in.
Today, mining is the only way to get electronic money.
