Introduction to Crypto-currency Mining || Cryptoacademy Lesson 4 By @besticofinder

Introduction

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Hello everyone, I welcome you all to my blog today.
I will try and emphasis on this topics

1. What is Crypto currency mining

2. How Crypto currency mining works

3. What is mining difficulty

4. Challenges Of Crypto-currency Miners

What is crypto currency mining

Crypto currency mining is a process of gathering crypto currency as a reward for work complete by a person or a group of person,

Crypto mining is the process whereby a computer or a machine solve cryptographic equation and earn crypto currencies as reward.
This process involves validating data blocks and adding the transaction records to the blockchain digital ledger.

Crpto miners can be define as a person or group of person that mine crypto currency

Now let take a look at the crypto currency mining process

Nodes Verify Transactions Are Legitimate

As we all know that transactions are the basic where the cryptocurrency blockchain is built upon, for any transactions to be complete it needs to undergo a verification process.

A miner also know as nodes in the network then collect and organise the transactions in the blockchain.

Adding A Separate Transactions To A List Of Other Transactions To Form A Block:

After the transaction process has been successfully verified, the next step is combine all the transaction into a list which is then added into an unconfirmed block of the data. This process helps in keeping public records thereby preventing double spending, this means the record can never be manipulated.

Adding A Hash And Other Data To The Unconfirmed Block:

After the verified transaction has been added to the unconfirmed blocks, the header data and hash from both the new blocks and the previous blocks are also added to the unconfirmed block

Miners Verifies Block's Hash For Legitimacy

After the verified transaction and the header data and hash has been added to the unconfirmed then the miners in the network then verify the unconfirmed blocks by checking the hash.

The Blocks Gets Confirmed and Published In The Blockchain:

The proof of work is the time consumed by the miner to solve the hash.
When the POW is completed the miner then confirm it and insert it to the blockchain, other miners then verify it and confirm it also.

The miner that solved the hash is then rewarded.

Mining Difficult

Mining difficulty is a measure of how hard it is for a miner to solve a complex problem and add a block to the blockchain.

However the first miner to solve this problem creates a new block and typically, this process happens every 10 minutes, the more computers competing to solve the complex problem, the quicker blocks will be discovered. To keep block creation at a fixed speed, the mining difficulty is adjusted every 2,016 blocks this is approximately every 2 weeks.

Challenges Of Crypto-currency Miners

• High Energy Cost:

Miners have adopted a special machine known as Application Specific Integrated Circuit (ASIC).
To make use of this special machine it requires a lot of electricity power resulting to a high electricity fee.

• High Rate Of Cyber Hackers:

The mining process is done online, hackers are now adopting tactics to remotely mine crypto currency from people's computers,

• Centralization

ASICs is what most of the miners make use of, this special machine has a few manufacturer, most of the miners are concern about the way this ASICs are being designed this can lead to centralization of the mining space.

Conclusion

I must confess I learnt a lot from the lecture of professor @besticofinder

To the attention of @steemitblog and @besticofinder this is my homework task

Thank you all for reading!!!

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