Cryptocurrency mining is a vital part in the validation and processing of transactions within a proof-of-work (PoW) consensus protocol, blockchain network.
Not all cryptocurrencies are PoW, but Bitcoin is. Other notable cryptos that require mining are Ethereum, Litecoin, and Monero. Many others use mining and PoW, but some don’t.
What is Mining?
Not all PoW are the same, but essentially, miners use their computing power to solve cryptographic computational equations with the intention of securing the network and earning a reward for their work.
A transaction is sent and a miner will pick it up and bundle it together with many other transactions. These transactions are sent to nodes for verification and once they’re verified the miners pick them back up and compete with other miners to work out the cryptographic puzzle and earn the right to add the block to the public chain and win the block reward.
Which Type of Computer To Mine With
Depending which cryptocurrency you want to mine determines the type of computer you will need. Bitcoin for example requires powerful computing power and can only be mined using powerful graphics processing units (GPU) ASIC mining machines. Read More…