Cryptocurrency mining is defined as the process through which the transactions of a digital currency are authenticated then published to blockchain.
For every crypto transaction conducted, a crypto miner is in charge of authenticating the information which, if approved, is then updated in the blockchain.
Currently, the most popular cryptocurrencies being mined are Bitcoin, Litecoin, Ethereum Classic, Monero, and DASH.
How is Cryptocurrency Mined?
The process of crypto mining itself involves the solving of complex mathematical equations through the application of cryptographic hash functions.
The crypto miner who can solve the solution first can authorize that cryptocurrency transaction while also receiving small cryptocurrency payments in exchange for services rendered.
Crypto mining is competitive, tedious, and generally requires that miners possess advanced computers with specialized hardware, increased processing power, and an unwavering internet connection.
Electricity, cost of internet, and computing hardware make up the bulk of the expenses that affect the net revenue created through crypto mining.
Most cryptocurrency miners generate no than a couple of dollars per day.
To perform crypto mining, miners must possess computer hardware that is accompanied by a graphical processing unit (GPU) chip or an application-specific integrated circuit (ASIC).
Recommended computer brands include both Windows and Linux since non-Windows systems tend to have a difficult configuration process.
Once acquired, crypto miners must ensure that they have a constant internet connection, have a means to cool-off hardware, possess a legitimate cryptocurrency mining software.
Miners also often require membership with both online mining pools and cryptocurrency exchanges.