What’s crypto mining ?

Version française ici : Qu’est-ce que le minage de cryptos ?

Hello everyone,

Today we're going to talk about mining, I've already vaguely talked about it in the article about cryipto-currencies, but today you’re going to have more details.

Mining?

I'll explain what mining is. We have seen in the bitcoin article that all crypto-currencies are decentralized and governed by a system called blockchain, the register where all transactions are registered. But this blockchain does not work alone because they don’t  check these transactions. So the solution was to invent the mining: a person lends the computing power of his computer to verify the transactions and in exchange, he receives a remuneration.

How are the miners paid?

I know you're asking this question and the answer is simple, their income comes from two things:

-Transaction fees

-The creation of the cryptocurrency, that I remind you, it is limited, for example bitcoin is limited to 21 million copies.

A person is randomly chosen based on the computing power held to earn the transaction fee gains and the creation of the crypto. This person is chosen at a regular time.

The mining difficulty:

So new concept: the mining difficulty is simply the computing power needed to mine your cryptos.

And what is a pool?

As I told you, only one person is chosen each time to get the cryptocurrency reward of mining. So when millions of people mine this crypto, you have little chance of winning, that's why the pools were created, thanks to them, it is several miners who join together to mine together and thus increase the chances of winning. 'get the reward. After the gains obtained are distributed based on the computing power you used.

Can mining be profitable if I do not have a rig?

A rig is a "computer" that is used to mine, being expensive, I understand that you do not want or not right now to buy one now. So you wonder if your conventional computer or rig if you buy one is profitable or not. Go to NiceHash and enter the graphics card of your device (found thanks to a simple internet search), the currency you use (to know how much you can win) and the price in your currency per kW (which you can find on a electricity bill).

Here we are at the end of this article, I invite you to upvote and subscribe to see all the new articles. Good mining 😉