Over the last few years, digital currencies have emerged as a very popular form of investment and payment, especially for those who are into online shopping. The fluctuation in the price of Bitcoin, which is now showing good signs of recovery after a record slump, has drawn the attention of those who are looking to invest but also mine their own coins.
However, the creation of a digital currency is not as simple as printing fiat currency. Fiat currencies are controlled and regulated by a government central body, which is responsible for everything, from printing new notes to dismissing older ones. All the cryptocurrencies including bitcoin are produced via process called ‘’cryptomining.’’
Cryptomining or cryptocurrency mining is a process of validating crypto transactions and producing new crypto units. The process is responsible for verifying and recording all the crypto transactions in a public ledger called blockchain. Each time a crypto transaction is verified and added to the blockchain, a crypto miner is responsible ensuring the validity of information and adding it to the blockchain. It involves competing with other cryptocurrency miners to crack the mathematical code using cryptographic has functions.
Anyone can start mining cryptocurrencies. All the they need is to invest in a specialized hardware dedicated to crypto mining. You will also need to make sure that your mining equipment keeps getting uninterrupted power supply and internet connectivity. Wondering what miners get in exchange for their services? Well, each miner receives a fixed percentage of cryptoucrrency they are mining. This is how crypto mining works.
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