Steemit Crypto Academy Contest / S9W5 - "Cryptocurrency Mining"

Good day once again to everyone, my name is oluwatimileyin and I welcome you to the season 9 of the engagement challenge.

I welcome you to my participation in the week 5 of the Engagement contest with the title: "Cryptocurrency Mining".

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

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Cryptographic currency mining is the process of authorizing and confirming transactions on a blockchain network while also printing new tokens as a reward.

Crypto currency mining is basically about using processing power to solve hard arithmetic problems. Miners give their calculating resources to something like a powerful machine or even mobile phones, to monitor transactions in a decentralized organization. This connection is used to ensures the blockchain's is secure.

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And as for STEEM Crypto currency, it cannot be mined in the actual sense. STEEM is mined through a Delegated Proof of Stake (DPoS) agreement. In DPoS, the agreement is achieved through a voted group known as "witnesses" and this are those who approve trades and generate new blocks. These witnesses are elected by the community or individuals through a vote, and they are responsible for keeping safe the STEEM blockchain.

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Name The various types of mining methods for cryptocurrency

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These are the various types of mining methods of cryptocurrency I was able to research on.

1.Proof of Work (PoW)

This is the most well-known mining method used by crypto currencies such as Bitcoin. Miners in this case compete to solve complex number puzzles, and the first to solve one wins the chance to add another block to the blockchain and receive the block prize according to the algorithm.

2.Proof-of-Stake (PoS)

This is a different approach, in this method, miners keep a large number of coins in their wallet as a form of stake. The possibility of being chosen to approve the next block and get the award is determined by the miners investment, i.e the amount of coins he/she owned.

PoS consumes less energy than PoW and the block rewards are based on the amount of the coin staked to mine.

3.Proof of-Space (PoSpace)

In this method, the miners makes use of available hard drive space rather than computational work. Miners use their computers to execute transactions for verification.

4.Cloud mining.

This method is better, as it entails borrowing mining equipment from a third-party provider. Miners can remotely access the equipment and mine cryptographic currencies without having to set up physically and maintain their own mining.

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

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Well, I have not actually yet participated in actual cryptographic currency mining as I already know that mining a digital currencies can be very hard and it comes with lots of equipment for the task.

But personally, I have been Mining the Pi currency using my mobile phone which is very simple. The Pi network is a company that intends to create a cryptographic currency that can be mined on mobile phones without power or requiring much network.

So therefore, the Pi company introduce a mobile application that can be used to participate in the mining system just by clicking a button once every 24hrs, so as to show your presence, and activiness and this also add to the security of the network.

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Give some of the Importance and benefits of cryptocurrency mining

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Crypto currency mining has several benefits which are:

1. Transaction Check & Security.

Cryptocurrency Mining is used to ensures the authenticity of transactions on a blockchain network, and Miners play an important role in preventing fraudulent activities on a network by approving and recording transactions.

2.Decentralization

Cryptocurrency Mining contributes to the decentralization of crypto currencies, in the Sense that instead of relying on a single source of power, miners work together to keep up with the network, making it more more difficult to focus an attack as there are several of miners keeping the network safe.

3.Coin Circulation.

Crypto Mining is the original method by which new currencies enter circulation, this allows miners to keep and secure the network. The mining reward can as well be used to invest in the project in return.

4.Network Security

Crypto currency mining helps to protect the network from fraudsters who are looking for a way to attack a transaction or distabilize the blockchain's security.

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Name some of the challenges of cryptocurrency mining

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Despite the advantages, cryptographic money mining also has its challenges which are:

1.Energy Consumption

Crypto currency mining , such as proof of Work require a massive processing power, which result in large amount of energy consumption. This has even raised concerns about the ecological impact of mining on the human World ecosystem.

2. Equipment Expenses.

Crypto Mining requires the use of specialized equipment, such as ASICs (Application-Specific Integrated Circuits), which can be very expensive to purchase and maintain, and this can be tough for miners to keep up with the most recent equipment as they keep getting harder.

3.Intense Competition

Crypto Mining of some well-known crypto currencies like Bitcoin and others has become very competitive this days, as this makes it more difficult for individual miners with a limited resources to catch up.

4.Regulatory and Legal challenges

The regulatory rules in charge of cryptographic currency and mining varies from each country. Miners are investigated for legal charge , and they are being taxed as well, and this could affect their mining operations as the rewards may no longer be sufficient for them to continue.

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Conclusion

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In conclusion, crypto currency mining is the process that ensures the trustworthiness, security, and decentralization of blockchain networks.

Here is where I pen down my entry to this contest, so therefore , I would use this moment to invite @yakspeace, @Lhorgic, and @jueco to participate in this contest as well.

Reference 1 - Wikipedia
Reference 2 - Academy Binance