A beginner’s guide to cryptocurrency mining

Written by EnergyPremier | Published 2018/03/23
Tech Story Tags: bitcoin | cryptocurrency | mining | ethereum | blockchain

TLDRvia the TL;DR App

In a world full of different modern technologies such as smart devices, smart vehicles, robots, etc. we are facing the modern technology trend for online raising funds and blockchain projects provided by cryptocurrencies. In the past few years, much has been discussed about cryptocurrencies such as Bitcoin or Ethereum, ICO, blockchain, crowdfunding, etc.

But, what is cryptocurrency? It’s a form of digital money designed to enable online purchases and transfers. Cryptocurrencies allow users to make payments without banks, governments, or another party, and these payments are safe and secure.

This trend is revolutionizing the world we live in. There is almost no person who haven’t heard about Bitcoin. When Satoshi Nakamoto founded Bitcoin in 2009, a new area in the technology world was created. Today, we are looking at the biggest and most popular peer-to-peer decentralized network and digital asset software platform known as Blockchain. Blockchain enables these cryptocurrencies like Bitcoin to be online traded without need of a third party. It’s a public register of every transaction performed in a particular cryptocurrency. These transactions are created into so-called “blocks”.

As it seems, cryptocurrencies have been rapidly growing in the technology world, and the number of people who buy and sell them is constantly increasing. More and more people are looking forward to join this revolutionizing trend and to learn more about the cryptocurrencies,

Have you ever wondered how Bitcoin and other cryptocurrencies are actually made?

The production of cryptocurrencies is nothing like the production of money. There are no governments, banks, or any other third party that has to issue the production. The cryptocurrencies are produced through a process called “mining”.

What is cryptocurrency mining?

It is the process through which the cryptocurrencies are made. It is called “mining” because it’s similar to the “gold mining”. Some particular cryptocurrency exist into the protocol (like the gold exist into the underground), and the “miners” bring it into the light. The miners create blocks of transactions, include them in the blockchain network, and receive new cryptocurrency as a reward. So, cryptocurrency mining has two functions: 1. it adds transactions to the blockchain network; 2. it releases new cryptocurrency.

How the cryptocurrency mining works?

For successful cryptocurrency mining you have to have a computer with huge resources and special program that allows miners to compete in solving mathematical problems. There is a hash value that uniquely identifies data, and miners use their computers to zero in on a hash value less than the target. The miner who is the first to break the correct block, is the one who mined the block and he/she gets reward.

What do you need to mine cryptocurrency?

  • a coin wallet, private database;
  • free mining software package;
  • membership in an online mining pool;
  • full-time internet connection (2 megabits per second or faster);
  • hardware setup location;
  • desktop computer designed for mining with powerful processor;
  • a house fan for cool air across your computer;
  • specialized processing device.

Is it worth to mine cryptocurrencies?

Yes! As the time passes, cryptocurrency mining has become very popular and the value of Bitcoin has become huge. Today, this type of mining is considered as a business. There are many people and companies that are investing in resources in order to mine cryptocurrencies.

Energy Premier is joining this technology world by introducing its presale and crowdsale. Energy Premier is a blockchain-based electricity trading platform intended for electricity suppliers and consumers. Through our platform, electricity suppliers are provided with direct and fair access to the energy market, and electricity consumers are provided with best electricity prices. We have also released a Bounty Program to reward our participants. Don’t miss it and join our energy revolution!

Thank you for reading.

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Published by HackerNoon on 2018/03/23