What is Cryptocurrency Mining
Cryptocurrency is a type of digital currency that generally only exists electronically. There is no physical coin or bill unless you use a service that allows you to cash in cryptocurrency for a physical token.
You usually exchange cryptocurrency with someone online, with your phone or computer, without using an intermediary like a bank. Cryptocurrency can be earned through an online exchange platform. Some people earn cryptocurrency through a complex process called “mining,” which requires advanced computer equipment to solve highly complicated math puzzles.
Let’s know about Cryptocurrency Mining.
Cryptocurrency mining, or Cryptomining, is a process in which transactions for various forms of cryptocurrency are verified and added to the blockchain digital ledger.
During the cryptocurrency mining process, volunteer coders called Cryptominers compete with each other to solve complicated mathematical problems using high-performance computers. Each problem uses cryptographic hash functions that are associated with a block containing a cryptocurrency transaction’s data.
The process of mining is also responsible for introducing new coins into the existing circulating supply and is one of the key elements that allow cryptocurrencies to work as a peer – to – peer decentralized network, without the need for a third party central authority.
For example – Bitcoin is the most popular and well-established example of a mineable cryptocurrency, but it is worth noting that not all cryptocurrencies are mineable. Bitcoin mining is based on a consensus algorithm called Proof of Work.
