Crypto currency mining is felt expensive and requires great care to be executed. It also provides rewards at irregular intervals.
Mining helps to earn crypto currency without any initial investment in online trading. It is only in this way that the crypto currency is created and let out for circulation. In other terms, it is said that making a crypto currency is equivalent to minting a coin. Once the mining process is being stopped, there will be no additional bitcoin into the scene. A successful miner is given the authority in participating in the decision making process about the protocol in use.
Bitcoin Mining is a process of solving complex computational math problems with the help of high powered computers. The problems are so complex that they cannot be solved by hand. The effort and work required to solve one of these problems is equivalent to a miner striking gold in the ground. Earning a crypto currencyis also achieved by verifying the transaction details. Use the available source and become miner today.
In precise, the miners act as auditors verifying the Bitcoin transactions. This verification prevents the problem of double spending”. As the name explains, double spending means the particular crypto currency is spent twice. With physical currency, it is not a serious issue, but it turns out to be a serious threat in the digital currency. It is impossible to spend the same Bitcoin twice.
A miner who verifies the 1MB worth of transaction, he earns 12.5 BTC. To earn a bitcoin, two conditions have to be satisfied with the miners.
- Verification of 1MB worth of transaction. This is a simple part of earning Bitcoin.
- Amidst the pool of miners, we have to be the first miner to arrive at a correct solution to the numeric problem. This process is quite tedious and is referred to as ‘proof of work’.
The numeric problem does not include any complex math problem-solving. Miners work by coming up with the 64 digit hexadecimal number. It is an alphanumeric constant. Hexadecimal has a base of 16 which makes use of 0-9 numbers and letters a, b, c, d, e,and f. The solution is got by guessing. This has to be a quick step to earn the bitcoin.
The miners make use of GPU, Graphics Processing Unit or an ASIC, Application Specific Integrated Circuit as their mining equipment. Some Ethereum miners make use of individual graphics cards for the mining operations.