Cryptocurrency mining is a very detailed topic to discuss and there can be a lot of articles that can be written at cryptocurrency mining because it covers many of the important information regarding the blockchain.
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I would like to share my knowledge about cryptocurrency mining and try to answer in my best possible way so I am right at your service again and let's moves and have a look on the answer of each question ⁉️
Cryptocurrency mining is a best way to collect the Crypto tokens and the users who are good in mining and mine Crypto tokens are the miners. Cryptocurrency miners have some very complex mathematical equations which they have to solve and after solving the complex equations they add new blocks at a blockchain in which they are working by the process of verifying transactions. Blockchain is decentralized and it have all the records and information of each and every transaction.
As the mathematical equations are very complex that's why cryptocurrency miners requires some special computers which have a lot of efficacy and good speed and by the help of these special computers and Technology Cryptocurrency miners becomes able to solve the mathematical equations and when they add them at blockchain then blockchain in return rewards them in the form of tokens that they use as a reward.
For cryptocurrency mining there is a lot of need of energy and concentration of the minor as well as a lot of need of computer efficacy and speed. The more the computer will be able to process the mathematical equations the more there will be chances of adding blocks to the blockchain and hence the more will be chance of cryptocurrency mining.
STEEM is one of the Crypto token and so it can also be mined but not mining can be done by everyone it can only be carried out by top 21 witnesses.Steemit mining occurs on the base of proof of stake mechanism which is also a good method of cryptocurrency mining. Delegated proof of stake is another mining method and it is also used by the steemit
There are total 21 witnesses which are responsible of mining and which can mine STEEM tokens. Stakeholders are those who choose these witnesses and that's why it is also said that the more STEEM power a person have the more there will be chances of his witness vote's worth.These witnesses check out all the transactions at the decentralised steemit Blockchain and hence allow new blocks to add and verify their transactions and in return reward them with a native token STEEM.
Some of the names of mining methods for cryptocurrencies.
- Proof of stake(POS).
- Delegated proof of stake(DPOS).
- CPU mining.
- GPU mining.
- Mobile mining.
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Staking of crypto means storage of crypto or collection of crypto tokens and proof of stake is a mining method in which the minors who have more staking will chosen or will preferred to create more new blocks at the blockchain in comparison to the miners who have less staking.
It is another mining method in which the stakeholders are responsible to vote for the delegates so that the new blocks on the blockchain maybe added. This mining method also requires the computers with more processing power.
CPU in general stands for a central processing unit so a powerful CPU is required for the solution of complex mathematical equations and for the addition of new blocks on the blockchain but drawback is that mostly it is not used due to a drawback of less profit in most of the cryptocurrencies.
GPU stands for graphics processing unit and they are very expensive but very good and profitable for mining of cryptocurrencies which are in high demand like Bitcoin and Ethereum.
Mobile mining is one of the cryptocurrency mining method but it is not much profitable and less expensive method because the name is indicating that it is a method of using mobile or tablet for mining so it don't give good and profitable results for most of the cryptocurrency tokens.
I have not involved myself in Crypto currency mining because I think about myself that I am not too much expert in mining as well as there are different reasons due to which I don't involved myself in mining including lack of time and lack of Technology as you all know that mining requires the most powerful processing computers and I have lack of them and also my routine is too much busy that I cannot invest a lot of time at mining but something that I know about mining I would like to share.
Cryptocurrency mining is a process which requires a lot of time and energy from you means from a miner as well as you can gain good profits if you have powerful processing computers otherwise your efforts would be not much fruitful for you. How much profit you can earn by cryptocurrency mining depends upon the Crypto token price which you are mining as well as the cost on the technology which you are using for mining process and the third factor which can be responsible is your time investment for Crypto token mining.
There can be several benefits of the cryptocurrency mining some of them I would like to share with you guys.
First benefit of cryptocurrency mining is all about the miners when they solve complex mathematical equations and add new blocks at blockchain and in return they receive and new Crypto tokens as their reward and if the prices of Crypto tokens becomes high within days then the miners become lucky one who mined the particular cryptocurrency.
Whenever a person or a miner ads new block at a blockchain then before further processing it is properly verified and it's a protection for the blockchain to prevent blockchain from any kind of fraud or any unnecessary block so mining also secure the blockchain.
Decentralization ensurety is also a benefit of cryptocurrency mining because while mining any expert miner can mine crypto coin because I decentralization platform is open for everyone who have a proper hardware and software for adding new blocks at blockchain.
Importance of cryptocurrency mining is associated with its benefits which are ensurety of the decentralisation of the blockchain, cryptocurrency earning by miners and blockchain security and prevention from any fraud so if all these benefits don't exist Then there will be no one who believe at a blockchain security and its decentralization so that's all about the importance of cryptocurrency mining.
First challenge the cryptocurrency mining have to face is the high cost of energy levels of computers means more powerful computers are required for the solution of complex mathematical equations because the computers with low efficacy and speed are not able to solve the mathematical equations so there is a competition among the high quality computers is increasing for miners.
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With the passage of time there is a more traffic increasing day by day of the cryptocurrency miners and hence there is increased in the competition among them so the requirement of more experienced miners is increasing as there is also an increase in the processing power of computers.
Third challenge in cryptocurrency mining is the expensiveness of technologies like hardwares and softwares because everyone is not able to buy and to afford such an expensive hardware and software which are the necessary requirements for the solution of complex mathematical equations.
So all these were the big challenges which cryptocurrency mining are facing nowadays.
My dear you it seems that you are very much families with the world of crypto. Your insights are good about mining of Cryptocurrency. Yes , mining can be done only 21 witnesses. DoPs. Stake holders are responsible for the production of blocks.
You have given proper information about the methods of mining. And yes ! There are multiple benefits of Cryptocurrency Mining. And In the last you have shared some challenges to mining. Yes , there are legal Restrictions in Pakistan. Thank you for this beautiful post.
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Sister it's nice to know from you that you also have a good understanding of the Crypto world and you have also read my all words very carefully and it means a lot for me and a little bit motivation for me also.
I just want to wish great success to you
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Thank you very much my dear !
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My pleasure 😊
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✨✨
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🤗
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Hola amigo
Si te das cuenta es irónico que a pesar de que los recursos para la minería son altos, hay más tráfico de gente invirtiendo en ese proceso y tratando de hacerlo.
En general, tienes buen manejo del tema pues estas al tanto de como es el proceso de minado del Steem lo que te ayuda a entender acerca el ecosistema de esta plataforma.
Suerte y éxitos ✌️
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Thanks for your comment but reality is that if I speak with honesty then I have no idea much about my name but I improve my knowledge allot after research and while making this article.
Good luck to you
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