Steemit Crypto Academy Week 4 // Introduction to Cryptocurrency Mining // Submitted to @besticofinder

Thank you Prof. @Besticofinder for this week's lecture.

Answer to Home work 4

Task 1

How crypto currency mining works ?

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Cryptocurrency mining refers to engaging a computer or series of computer in order to solve a particular problem (cryptographic equations) in which there are rewarded for doing so.

It is the last stage of the four stages transaction in which the node add a new block of transactions to an old chain,which is usually effected by a software called proof - of - work. Under this proof of work, the miners are expected to Employ measure, resources, electricity to solve a mathematical or cryptographic equations in other to verify a block transactions, for only a few coins. This incentive pattern helps prevent the hackers and attackers and it also provide a medium where new currencies are introduce into supply.

During Mining, miners get to solves this equation over and over again until the find the solution. The transactions are verified over and over again. Each time a solution is found, the miner who finds the solution first adds a block to the chain who is the rewarded with few coins. The process that commences again.

What is mining Difficulty
Mining difficulties implies the time and resources required to solve a cryptographic equation, or to find the correct hash for each block. This difficult decreases or increase over time depending on the available miners in the network. The more popular a cryptocurrency is the more miner population increases, an example is Bitcoin. This inturn will cause a struggle for the limited available resource to be distributed among miners. Usually, the first miner to get the solution, creates a new block and get the allocated free coins.

What are the problem of Miners
Some of the problems of miner are these:

1)Cryptocurrency Energy:
Energy consumption required for solving this cryptographic equations and creating new block are on the rise. This increase of high energy has brought concerns to miners and even the community within. This concern need to be addressed.

2)Security of cryptocurrency miners
Another problem has to do with security, it is true that process involved in mining are such that it can protect the system, but there is still a possibility of hackers, etc. Attacking.

3)Miner income
Mining difficulties increase as mining participators increase thereby reducing the generated from mining. Mining is quite expensive, equipment, energy consumption etc and miners need to be guaranteed of a tangible profit. For this reason, miners need the price of cryptocurrency to continue increasing so that they can be sure of profit.

Thank you.