I hope you all are doing very well. and enjoying the steemit.
In this post , I am here to submit my homework task 4
which I have carried out as required by @sbeaticofinder, crypto professor.
i will be explaining in my own way all the basic terms stated by prof @besticofinder in his presentation.
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How crypto currency mining works ?
Cryptocurrency mining usually start with the block. The miners verify the authentic of the transactions in cryptocurrency through a network. In other to understand how this cryptocurrency mining works, you have to understand the processes and technologies that is involved. And also how the blockchain works. When ever a group of transaction is approved it is known as a blocks that are tied together to create a chain that is known as blockchain.
So mining is a record keeping process done by miners to keep blockchain going for which they are rewarded cryptocurrncy and therby serve as a mechanism of new cryptocurrncy generation. In case of Bitcoin, as supply is limited to 21 million that are anticipated to be unleashed by 2140. To keep rewarding miners thereafter, it is said that miners will be paid from transaction fee.
WHAT IS CRYPTO CURRENCY MINING?
Cryptocurrency is where machine performs a task assigned to earn assets on the Blockchain.
Cryptocurrency Mining started in the 1990s, when there was a desire for methods to perform a secure electronic peer-to-peer (P2P) transactions without the need of a central Authority to check the transactions. This was made possible with the emergence of bitcoin in 2008 by Satoshi Nakamoto. Bitcoin utilized two new intertwined technologies : Blockchain and Mining.
WHAT IS MINING DIFFICULTY?
Difficulties in maintaining mining in a blockchain. Mining Difficulty is a measurement unit used in the process of any Cryptocurrency assets mining and a certain amount of resources is required to compete for mining assets.
To mantain the standard of blockchain and target block time (example, 1 block every ten minutes for Bitcoin ) , difficulty level has to be adjusted from time to time. After every 2016 blocks added to the network, mining difficulty is adjusted automatically. Mining difficulty is adjusted according to the number of miners and hashpower.
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So the rece is to find cryptographic Hash. A target hash is basically a 64 dighit hexadecimal number. Miners are supposed to find a number or Hash which is less than or equal to target Hash. So it is basically a guess work. And the one who finds it firet, is rewarded for the same known as block reward or miming reward.
CHALLENGES ASSOCIATED WITH CRYPTOCURRENCY MINING
The rise of Cryptocurrency has also introduced high risk factor.
High Energy Cost: Mining in a Cryptocurrency transactions requires an amount of energy, it helps for smooth transaction but this energy causes an high amount of energy.
Security of Cryptocurrency Mining: Hackers have improvised ways to tap your resources. Most cyber thrives creates a ransom malware that mine cryptocurrencies from a person's wallet. Most at times they come in form of links that when you click on th link, you are automatically attacked.
What are the challenges for crypto currency miners ?
Cryptocurrency miners are face with numerous challenges such as;
High Power Costs
For a miner's to achieve a successful mining their need to combine hundreds of ASICs together in other to solve a single problem, and the consequences of this is that high power would be required that will lead to high cost of electrical fees. This is one of the major challenge that miners are face with shortage of power.
Miners are face with treat
Most miners always encounter malicious attack by hacker
Thank You
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