Crypto mining methods

Assalamualaikum

Greetings to you all!

Pixabay

Crypto mining is phenomenon of validation of transactions at blockchain network and then getting rewarded with crypto tokens in return. Miners are those which mine crypto so miners utilities powerful computers for solving critical mathematical problems and secure network and verify transactions.

Proof-of-work

Proof-of-Work is one of the most common mining methodology which use cryptocurrencies such as Bitcoin and Ethereum. Miners compete with each other for purpose of solving complex mathematical problems which also needs significant computation power.First miner who will solve equations will add a new block of transactions at blockchain and in return he would be rewarded with cryptocurrency.

Proof-of-Stake

Proof-of-Stake is one of most alternative mining methodology utilized by crypto such as Tezos. Regardless of computation power miners may stake their own cryptocurrency for validation of transactions. Miners with highest staking has a higher chance of addition of a new block to blockchain.

Mining Pools

Mining pools are useful for permitting individual miners for combining their computation power and increasing their chances to solve mathematical problems. Pool members can share rewards with equality to their contributed computation power.

Cloud Mining

Cloud mining includes renting of computationpower from cloud provider for mining crypto. This methodology is useful for eliminating requirements for costly hardware and it's maintaining capabilities.

GPU Mining

GPU stands for graphical processing unit in which mining utilies specialized graphics cards for solving mathematical equations.Graphical processing units are more efficient and reliable than central processing units for mining.

ASIC Mining

ASIC stands for Application specific integrated circuit and mining through it utilize custombuilt chips particularly made or designed for crypto mining. ASIC is most efficient and reliable mining hardware.

CPU Mining

CPU stands for central processing unit nd this type of mining use a computer processor for solving math equations. CPU mining is not more efficient than GPU or ASIC mining.

Mining Algorithms

Mining algorithms are useful for determining mathematical equation which are utilized for securing blockchain. Most common algorithms that are used are SHA-256 for Bitcoin,Ethash for Ethereum and Scrypt for Litecoin.

Pixabay

Energy efficiency

Energy efficiency is one of most growing concern in crypto mining. Miners adopt renewable energy sources and optimize hardware for reduction in energy usage.

At last there are some terms you need to understand if you are knowing basic information of crypto mining So;

• Hash rate is used for measurement of computation power
• Block reward is defined as crypto reward for adding a new block that receive to a miner.
• Mining difficulty can be regarded as adjustment of mathematical equation difficulty
• Mining rig are defined as some of customized computer specially made for cryptocurrency mining.

I am hopeful that you all have understand some of the methodologies of crypto mining and important terminologies about it.I will come back soon with a new topic...

Have a blessed day