Crypto currency mining - All you need to know guide

What is Crypto currency?

Crypto currency is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets. Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies.

What is crypto currency mining?

Crypto Currency Mining is a peer-to-peer computer process used to secure and verify cryptocurrency transactions—payments from one user to another on a decentralized network. Mining involves adding cryptocurrency transaction data to cryptocurrency's global public ledger of past transactions. Each group of transactions is called a block. Blocks are secured by miners and build on top of each other forming a chain. This ledger of past transactions is called the blockchain. The blockchain serves to confirm transactions to the rest of the network as having taken place. Cryptocurrency nodes use the blockchain to distinguish legitimate transactions from attempts to re-spend coins that have already been spent elsewhere.

How Does Mining Create New Bitcoins?
The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce bitcoins into the system. Miners are paid transaction fees as well as a subsidy of newly created coins, called block rewards. This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system through mining.

What Are Bitcoin Mining Pools?

During the last several years an incredible amount of Bitcoin mining power (hashrate) has come online making it harder for individuals to have enough hashrate to single-handedly solve a block and earn the payout reward. To compensate for this pool mining was introduced. Pooled mining is a mining approach where groups of individual miners contribute to the generation of a block, and then split the block reward according the contributed processing power.

How To Start Bitcoin Mining?

To begin mining bitcoins, you'll need to acquire bitcoin mining hardware (Our friends at Panther PC India helped us in getting one for ourselves). It is possible to mine with your computer CPU or high speed video processor card. Custom Bitcoin ASIC chips also offer performance up to 100x the capability of older systems have come to dominate the Bitcoin mining industry.

Bitcoin mining with anything less will consume more in electricity than you are likely to earn. It's essential to mine bitcoins with the best bitcoin mining hardware built specifically for that purpose. Several companies such as Avalon offer excellent systems built specifically for bitcoin mining.

Bitcoin Mining can be very rewarding depending upon how you execute those tasks. Unfortunately, there is much more to talk about cryptocurrency mining that it is impossible to explain everything in just a single task. But if you want to know everything, Google search can provide most of the information for free and if you need your own cryptocurrency mining(Bitcoin is the most mined currency, Ethereum follows at the second place) computer/machine/rig, do check out as they provide various customization options along with great customer support.

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