INTRODUCTION
Greeting to all my fellow Steemians
I am back again to present my homework given by @besticofinder
TOPIC COVERED: CRYPTOCURRENCY MINING
HOMEWORK TASK: HOW CRYPTO CURRENCY MINING WORKS, MINING DIFFICULTY, CHALLENGES FOR CRYPTO CURRENCY MINERS
In this task, am going to be Bitcoin as my case study.
So let go into the task.
HOW CRYPTO CURRENCY MINING WORKS
Crypto Currency Mining is a process of gaining or gathering Cryptocurrency as a reward for work that the miner completes. So Bitcoin Mining is the verifying of the legitimacy of a Bitcoin Transaction, it can be said as the processes were by miners competes to solve mathematically complex problem. Every problem that being solve successfully by a miner adds a block to Bitcoin Blockchain and receive reward for it. Note the reward a for the miner effort, but the process of mining is how new Bitcoins are generated and introduced into circulation.
In Bitcoin Mining, a miners go is to add individual blocks to the Blockchain by solving complex mathematical problem as stated before. This process of mining requires enormous computational and electrical power to work,
MINING DIFFICULTY
The mining difficulty using Bitcoin as a case study, is how difficult and time consuming it is to find the right hash for each block. The difficulty of mining new units increase and decrease over time, based on the number of miners in the network.
As Cryptocurrency like Bitcoin become popular the more people are participating in this peer-to-peer network increase, so miner competes against each other for limited block reward. With more participants or more miners the hash power of the entire network tend to increase accordingly.
CHALLENGES FOR CRYPTO CURRENCY MINERS
Originally, you could easily mine with your personal computer, but however this is not the case anymore because of the large amount of people mining you need a faster means to mine, and also using personal computer to mine tend to damage the system because of it continues work. As such a miner is forced to buy or adopt faster processors, to beat the heat of competition. For that reason many serious miner need to buy a special machine know as ASIC.
Another problem faced by miner is high energy cost, to get reasonable result in mining a miner need to combine a large amount of ASICs together to solve one problem, and this require extremely high power output, which will cost you high electricity charges.
A CBS News Repost revealed that Bitcoin mining consumes more energy than 150 countries.
So in all the difficulty mostly faced by miner is based on cost (finance) of mining, you have to pay out off your little earning, at the end of the day you already using almost half of your earning for bill and so.
It not too late to start mining, but put it at the back of your mind the expense. Thank you
CONCLUSION
Well I want to thank the brains behind Crypto Academy this wonderful program, and also all the professor in program for the knowledge been dished out for free may God bless your work.
Thank you all for taking your time to read my article. Am also thankful to @besticofinder for dish out amazing lecture and give out intriguing homework. Sir @besticofinder here is my home work hope it reached your expectation.
Cc:
@steemitblog
@steemcurator01
@steemcurator02
@besticofinder