How Are You Everyone?

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Today for the first time I took part in a community challenge Steemit Crypto Academy. The theme that was carried out was "Cryptocurrency Mining". For Steemians who want to participate, can click this link.

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The mining of these cryptocurrencies should be thoroughly discussed. Unfortunately, I still lack experience with digital money. Today will try to fight with cryptocurrencies with the aim of mining crypto amounts even though the competition between miners is also big. There are also challenges that every miner faces.

There are three factors that must be faced, namely the lack of resources, for example, high energy consumption, market volatility, and the dangers of mining such as negative effects on the environment where these digital money channels are located. Many miners lose and some win. Below I try to learn the basic concepts of mining. You can read it!

What is cryptocurrency mining? How does it work? Can STEEM tokens be mined?

In the process, everyone has to use their computer to verify transactions made in certain cryptocurrencies, for example, Bitcoin. To do this, miners have to solve complex math problems. When miners solve these problems and verify transactions, they receive rewards in the form of new units of cryptocurrency and transaction fees.

It is also important to mention that cryptocurrency mining is important because it helps keep cryptocurrency networks secure, i.e. difficult to hack or has error vulnerabilities, allowing people to use and trade with those cryptocurrencies.

• How does it work?

This job is like panning for gold in a virtual mine. Many people are looking for gold in the same mine, so the competition is high. To find gold, miners have to solve very difficult math problems that the mine gives them. Once miners find gold and verify a series of transactions, it is added to a digital ledger called a "blockchain."

In return for their work, miners receive new digital coins as a reward and a small amount of money from each transaction made. This helps keep virtual mines safe and ensures that people can use and trade digital currencies.

• Can STEEM token be mined?

Steem uses another type of mining called "Proof-of-Brain" which is brain-proof. so Yes, STEEM can be mined. But instead of using a computer to solve math problems, STEEM mining involves participating in the STEEM community and posting or voting for interesting content.

People can earn rewards in STEEM for posting content that others like and for voting for content from other users. The amount of rewards received depends on how much STEEM Power each user has, which is based on how much STEEM they have.

So, instead of solving math problems, STEEM mining is more like a contest, where users can earn prizes by creating interesting content that engages the community.

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Name The various types of mining methods for cryptocurrency

Each cryptocurrency uses a different method to verify and add transactions to the blockchain, so I'll mention them below:

Proof-of-Work: Here as an example we have Bitcoin, Litecoin this method requires use of computer resources so it requires high energy costs to solve math problems and thus add new transactions to the blockchain so that competition becomes generated between the miner and the one who finishes the highest receives the corresponding cryptocurrency reward.

Proof-of-Stake: Here as an example we have Cardano (ADA) and Tezos (XTZ) coins, Binance and Polkadot here instead the miners use the amount of cryptocurrency they have, which is their participation, meaning proof of their commitment to the network, so here the miners who have the largest number of cryptocurrencies are more likely to be selected to add new transactions to the blockchain and thereby receive rewards in the corresponding cryptocurrency.

Delegated Proof-Stake: Here we have EOS and TRON cryptocurrencies as examples. Here miners do not directly participate in mining but elect delegates who will add new transactions to the blockchain on their behalf. Delegates are rewarded with the appropriate cryptocurrency for adding new transactions to the blockchain.

Proof-of-Authority: As an example of an Ethereum Classic asset where repeated use of intensive information or possible crypto candidates, miners are selected in the identification function and their reputation is red.

Proof-of-Brain: An example here is STEEM where instead of using computers to solve math problems, STEEM mining involves participating in the STEEM community and posting or voting for interesting content. People can earn rewards in STEEM for posting content that others like and for voting for content from other users.

The amount of rewards received depends on how much STEEM Power each user has, which is based on how much STEEM they have. So, instead of solving math problems, STEEM mining is more like a popularity contest, where users can earn prizes by creating interesting content that engages the community.

Have you ever been involved in cryptocurrency mining? If yes can you share with us how you mined this coin?

No, but now with Steem I practice it where I collect more power and magic by finding valuable content and voting and receiving gifts motivates me also when I create content and participate in community events to be healed by whales That motivate me to keep building and increasing my power in steem.

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Give some of the Importance and benefits of cryptocurrency mining

The importance of mining is maintaining network security and transactions made in each cryptocurrency. Additionally, for example, like bitcoins, miners create more bitcoins, ensuring an established supply of circulation, which is limited.

The benefit is that miners generate rewards, which ensures in the long term that every project consolidates and grows and sees a decentralized fair community, which is the philosophy of every cryptocurrency that has a mining function.

Name some of the challenges of cryptocurrency mining

The cryptocurrency mining challenges that you are facing right now are:

• High energy and equipment costs for miners to mine
• High environmental pollution for our planet
• Miner difficulty where multiple miners compete for prizes
• Security risks: Nowadays many cryptocurrency projects have been breached by hacks, resulting in millions of losses.
• Regulatory uncertainty due to country laws: Several countries started to legislate with cryptocurrencies but it is not clear what caused miners to restrict and in some cases ban cryptocurrency mining.

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I want to invite some steemian friends @abuarkan @ustazkarim @isha46 If there is a chance please visit this contest.

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Thanks to Steemian friends and the Steemit Team who always support me. I really appreciate it. Thank you for your time

Kind Regards @Munaa