What is mining in simple words
Every Internet user has ever heard of the word mining. With the advent of Bitcoin, the cryptocurrency began to gain tremendous momentum. As it should be, people wanted to make money on it, and the mining history began. But what is it? In this article you will learn about what mining is, how it appeared and whether it is possible to earn money on it!
What is mining?
What is this way of earning? From English, the word mine means mining of minerals and minerals, yes, yes, those in the mines! It would seem, what have the Internet and cryptocurrency? Now we will understand, but to find out what mining is, let’s learn the concept of the blockchain, the foundation of any cryptocurrency.
Blockchain – Future Database
A blockchain is a database into which blocks are written, forming a chain. This block chain cannot be edited or formatted from outside. It is stored on multiple computers, and when writing a new block to one computer, after checking it is updated for all. Blockchain is a decentralized and uncontrollable system, it is anonymous and completely open. The blockchain’s security gives it a huge scope, from financial transactions to paperwork. And most importantly, it can not be hacked.
The first and most famous fruit of the creation of this system is Bitcoin, released in 2009. Bitcoin transactions, like any cryptocurrency, take place on the basis of the blockchain, and thanks to it, the cryptocurrency is the safest currency in the world. Bitcoin was the first crypt, which started mining, and minyat to this day.
The essence of mining is very complex, and without immersion in the topic to explain this term will be difficult. To put it simply, these are mathematical calculations that are carried out on computers and mining farms. Thus, the miner generates a new link in the blockchain “chain” and receives a reward. The amount of earned bitcoins directly depends on the computing power of the mining farm.
At one time, the video cards simply disappeared from the shelves of stores, even dealers appeared who sold them at an exorbitant price. Now I understand why? More power – more money. Some people build mining monsters astounding. Mining farm with hundreds of video cards and the size of the production shop! Such farms consume a huge amount of electricity and have enormous computing power.
How to start mining?
We found out what mining is, and I know what you thought! One of the most important points of mining is the complexity curve. The tasks that are given to a computer for solving become more and more difficult with every coin that has been minted by someone. And this means that every year the mining loses its relevance, because bitcoins are harder to mine, and it is almost impossible to do this on a stationary computer. There is even a specific number of bitcoins, which can be mined – 21,000,000 BTC (17,000,000 are now mined).
However, this is no reason to throw this idea! Now you will see by points what you need to start mining:
Create bitcoin wallet. Fortunately, it is not difficult. Bitcoin wallets hundreds, and you can choose any of them. Even such large wallets as webmoney have in their functionality the ability to create a bitcoin wallet. This is a simple step, we go further.
Select mining pool. Mining pool is a server to which many miners are connected. All computational capacities are added up, and, accordingly, production is much faster. Upon receipt, Bitcoin is shared between all members of the pool. Mining pool is not necessarily a condition, but if you do not want to buy expensive equipment, then this option will be optimal
Choose a miner. After selecting the mining pool, you will need to download and install a miner program. Her choice depends on how you are going to mine cryptocurrency. The main programs for mining are free and are in the public domain.
This is a superficial instruction, more detailed you can find on the Internet.