Hello everyone, I hope you all are doing well. I am here to share my participation in the steemit engagement challenge season 9 week 5 in steemit crypto academy. As usual steemit cryptoacademy has shared a great topic for a contest through which we can learn about the crypto world.
Cryptocurrency mining is the procedure that verifies and validates a blockchain transaction, a method through which we can create a new cryptocurrency unit. Cryptocurrency mining helps us to keep the blockchain network safe and secure.
Cryptocurrency mining assures the security of cryptocurrency and the decentralization of cryptocurrency. Through cryptocurrency mining, we can add new units to previously existing units. Cryptocurrency mining obeys a set of regulations that control the mining procedure and prevent any user from randomly generating new coins.
Cryptocurrency mining involves multiple procedures to work. For cryptocurrency mining first, you have to add a block successfully, the miners have to solve the complex and tricky mathematical questions that can be solved by using a computer network and extensive use of electricity.
After this miners have to complete the mining process by giving the exact and appropriate number (hash) which is called proof of work (pow). Once the miners give the correct number and be able to add a new block successfully then they are rewarded with cryptocurrency tokens which are cut to half roughly after every 4 years.
Steem Blockchain has a native token which is the Steem token. We can't mine steem tokens. But it can be mined by Delegated Proof of Stake (DPoS) mechanism. This mechanism is achieved by a super representative (witness group) that allows Steem tokens to trade and create new tokens. Witnesses are responsible for keeping Steem Blockchain safe and secure as they are selected by users or communities by giving them votes to reach top witnesses on the blockchain.
There are various types of cryptocurrency mining and here are following some types which I have mentioned in its working process and mining of cryptocurrency.
- PoW (Proof of work) (It's the most essential type for the cryptocurrency mining)
- PoS (Proof of stake)
- DPoS (Delegated Proof of Stake) Used for mining on Steem Blockchain
- PoC (Proof of capacity)
- PoB (Proof of burn)
- Cloud mining
These are different types of cryptocurrency mining and they need different requirements to complete the mining process either by using special devices or video cards.
No, I haven't been involved in any cryptocurrency mining as I have little knowledge about cryptocurrencies and their tokens. Even I have started learning the procedure of selling and buying cryptocurrency Binance. Secondly, I have done a little research on it through and I learn that it requires an extensive computer network, a huge amount of electricity, and many cryptocurrency tokens.
Either I live in a city but here people have very less knowledge about cryptocurrency and cryptocurrency mining. As I mentioned that Steem can be mined by delegated proof of stake on the steem blockchain so, I have voted for witness to the top 20 witnesses that work for the Steem Blockchain progress and mining.
Cryptocurrency mining is good for Steem Blockchain as the witness verifies and validates the new blocks and transactions. So, it's beneficial to mine cryptocurrency tokens. Here are some benefits and importance of cryptocurrency mining:
The most important and beneficial thing of cryptocurrency mining is keeping Steem Blockchain safe and secure because it always validates a transaction and verifies new blocks which makes it more secure and reliable.
Cryptocurrency mining is the process by which we verify newly added blocks and validate each & every transaction on the blockchain which makes it more secure due to mining.
As we Steem is a decentralized blockchain and cryptocurrency mining also assures the decentralization of cryptocurrency. The decentralization of cryptocurrency means that all the miners play their part in the verification of new blocks and validation of transactions on the blockchain not by a single miner which makes it a more transparent method.
I have read that many users are earning a huge amount by cryptocurrency mining as its method involves, you can be rewarded with cryptocurrency tokens on mining on different Blockchain.
There are some challenges we always face when doing any work and here are a few challenges that someone faces during cryptocurrency mining.
The most difficult thing about cryptocurrency mining we need a big device and extensive electricity for mining any cryptocurrency which makes it's difficult for everyone to mine any cryptocurrency.
Secondly the equipment equiped which require for mining costs too much that every person can't be involved in mining especially a user like me who has fewer resources to mine any cryptocurrency.
Cryptocurrency mining has a lot of competitors in the market which makes it difficult for everyone to mine cryptocurrency tokens and get rewards. As we need more knowledge, brainstorming, and authentic hash to get the rewards for mining any cryptocurrency tokens. Due to this, it's reduced miners get rewards for mining cryptocurrency.
When most users start mining it will make to transaction become as it increases miners' traffic on that blockchain. Which increases the delay in the verification of new blocks and validation of transactions.