My Homework on Introduction to Cryptocurrency Mining | For Professor @besticofinder | Steemit Crypto Academy | Week 4 | by @phyno

Hello Friends,

Source

Let me start by thanking you Sir @besticofinder for what you have been doing for the newcomers of this community "providing the fundamental knowledge which is required for a newbie who is entering the crypto currency industry. And equally making sure that he invite you to go through them if you need the basic knowledge to start trading."

How crypto currency mining works?

As I have successfully learnt, Crypto Currency Mining is the process which keeps these crypto currencies active by enabling their transactions, which means it is an important aspect to the Cryptocurrency industry.

Because it is the process where a computer performs a task and earn cryptocurrencies, which is mostly easy. That task here is the process of verifying crypto transactions (solving mathematical equations ) and inserting them to the blockchain, isn't that wonderful?

This is how it works, after a transaction is still in progress, that request is bundled in to a block , in blockchain network with other blocks. This new block is broadcasted to all the mining nodes in bitcoin blockchain network.

These nodes validates this transaction through processing mathematical algorithms. The miner who validate this first gets an amount of currency as a reward, transaction is confirmed and completed with a new permanent block added in to the blockchain. Whereby mining has taken place. It's really Interesting right?

What makes Mining Difficult?

For me what makes Minning difficult is

• When selecting a mining pool we have to consider the hashrate , pool size , currency, and fees.

• Because the reward earn through mining pool is divided among the members of the pool.

• When considering the rewards, So the income is comparatively high compared to individual mining.

• Most of them are designed to mine a selected crypto currency.

What are the challenges for crypto currency miners?

The major challenge for me is that ASICs have specific a solely minning cryptocurrency, and ASIC manufacturers are occupying the mining space making it centralized, which is a challenge to the Cryptocurrency minning Industry.

Cc:-
@steemitblog
@steemcurator01

Thanks All......