EXPLANATION OF CRYPTOCURRENCY MINING

Many might be familiar with hearing of cryptocurrency mining but never understand how it works or what it is all about. This post will take you through the lengthy explanation of what mining is all about, just keep following.

Firstly, What is mining of cryptocurrencies?

Mining is the process by which transactions of crypto currencies are secured. For this purpose, those involved in carrying out this process are called miners. They carry out mathematical computations for the network with their computer equipment. As a reward of their services, they earn the newly created coins, as well as the fees associated with the transactions they confirm because they are involved in our crypto currency transactions confirmation. In this sense, miners are competing and their incomes are proportional to the computing power they deploy.

For better understanding of the concept of mining, Andreas Antonopoulos, one of the most well-known and well-respected person based on his services in the Bitcoin community, explains that “a good way to describe mining is like a giant competitive game of sudoku that resets every time someone finds a solution and whose difficulty automatically adjusts so that it takes approximately 10 minutes to find a solution. Imagine a giant sudoku puzzle, several thousand rows, and columns in size. If I show you a completed puzzle you can verify it quite quickly. However, if the puzzle has a few squares filled and the rest is empty, it takes a lot of work to solve! The difficulty of the sudoku can be adjusted by changing its size (more or fewer rows and columns), but it can still be verified quite easily even if it is very large.”. That really gave a good illustration of the concept of cryto currencies mining but will be well understood by those that a familiar with the concept of mining. Mining is never as easy we hear about it hear and there, because it requires alot of energies and time to make enough profit.
I guess you have a little knowledge of how mining works now. I'll post more on it later. Thanks for reading