If you have been following cryptocurrencies since their introduction in 2009, you would agree with me that cryptomining is one of the exciting features of digital assets. If you did not know, cryptomining is one of the vital features of cryptocurrency that unknowingly keeps the blockchain platforms running. In this article, you will learn what cryptomining is and how to do it. Also some interesting facts about cryptomining and some of the practical examples of crypto coins you can mine today.
How to get cryptocurrencies?
Cryptomining is the process by checking transactions to see if they follow specific rules in a cryptocurrency network. It encourages people to verify more transactions through a reward system in the form of new currency. The currency is generating when a miner with the help of a computer, software and internet connection successfully adds a new block to the chain. So the main question is how to get cryptocurrencies?
To mine cryptocurrency, you need to invest in hardware in the form of computer chips. The three most common chips used in the process are:
• Application-Specific Integrated Circuit, ASIC- These are computer chips specifically for cryptocurrency mining. They are the most expensive to acquire but are the most powerful and the best in cryptomining.
• Graphics processing unit, GPU- The main winning point for GPU is for 3D graphics, a factor that improves the mining experience. These chips can create more hash guesses than a CPU in a given amount of time.
• Central Processing Unit CPU- These are the chips commonly known as the ‘brain’ of standard computers. You can use CPU as a cheap hardware for mining cryptocurrency.
The crypto mining unit will, in general, follow this process:
• The computer powered by one of the chips above checks the waiting transactions in the blockchain. The purpose to ensure that no transaction is sent twice. And that each wallet has enough balance to fund the requested transaction.
• Then it collects all the verified transactions into a block.
• The miner solves a puzzle. Usually by guessing the hash of the block, to publish the block on the chain. Here, you should know that the characters are highly unique and can only refer to the block you are trying to publish.
• Lastly, the computer finalizes the guessing process and comes up with a correct combination of numbers and letters for the hash after which it publishes the block on the chain.
A cryptocurrency network has the ability to change the complexity of the problems solved. The difficulty level will increase when many people try to mine the cryptocurrency, a tactic that ensures that mining does not produce more coins that what is needed in circulation.
Cryptomine Interesting facts
• It is the only way of increasing cryptocurrency in circulation
If it were not for cryptomines, every cryptocurrency in circulation would correspond to the initial block provided during development. To ensure that the rate at which cryptos does not surpass the amount needed in circulation, the amount of new cryptocurrency released by a crypto mine is reduced over time.
• The conditions of winning a block are ‘effort’ and ‘luck’
Many people think that mining is all about verifying the 1MB worth of transactions to be eligible to win a crypto. However, this is just the ‘efforts’ bit that, as a matter of fact, is the easiest part as most miners will achieve this. If the process stopped at this stage, mining would not be exciting. What makes things interesting is the ‘luck’ part where you have to be the first miner to determine the correct or the closest answer to a given numeric problem for you to be awarded. The hash power of your hardware determines part of this.
• The whole process in a cryptomine is guesswork
Don’t fear to try out a cryptomine. Because you think some experts must at the end of the day go home with the rewards. Unless one of you has a lot of computing power, you all have equal chances of winning the prices.
• There are no complex mathematical problems
Cryptomine problems are just normal mathematical problems just that the solution is a factor of speed and not just accuracy. You have to be the first miner to crack the hash for you to be told that you have solved the problems. If otherwise, it does matter how close your digits are, to the required ones.
Tron cloud mining, Altcoin cloud mining and others
Dentacoin mining
Dentacoin was developing to create solutions to improve the quality of dental care at a global level. Since the Dentacoin tokens not enough at an amount of 8 trillion Dentacoins, they are not mineable.
Tron cloud mining
Tron is a dedication project to accelerating the crypto-currency development while providing technical support to the users in their ecosystem. Since the cost of setting up a mining rig for Tron is very high, you can always rent out hardware such as GPU or the powerful ASICs and do Tron cloud mining. Keeping in mind that Tron’s mining process gets more complicated when the demand for larger hash increases.
Bitshares mining
Bitshares mining is done through proof of stake and again only those with powerful hardware will be able to mine successfully. Here the ASICs hardware still wins although it comes with problems such as noise, high power consumption not forgetting the high initial capital required to purchase it. Most of the payments from bitshare mining are in the form of bitcoin. The profitability charts for the mining process are mainly displaying in the form of USD.
Altcoin cloud mining
Altcoin cloud mining can attract decent profits considering that it is one of the major coins with high profitability chances. All you have to do to cloud mine Altcoins is to open an account with a mining company. Second, to purchase the hash power and lastly, select the duration you want to mine this coin.
Syscoin mining
The eco-system of Syscoin is similar to that of popular platforms such as Amazon and e-bay. In fact, the main aim behind Sys’s development is for it to be tradable and mineable worldwide. All you need to mine this currency is an ASIC computer. The good thing with Syscoin mining is that it can be easily merged with Bitcoin mining. Cloud mining is also possible for this cryptocurrency.
I hope that this guide has helped you understand how cryptomining is crucial to both the miner and the cryptocurrency platform. If you put in some effort in verifying some transactions and better still if luck lands on you, you can never go home unrewarded with cryptomining. Remember that if mining with physical hardware seems to be unprofitable for you, you can try out the relatively new and cheaper form of mining; cloud mining. If you play your crypto cards well here, you might end up earning a decent living. Especially now that this digital asset earning method is less crowded.