What is Cryptocurrency Mining

1. What is cryptocurrency mining? Margaret Freit

2. Cryptocurrency Mining Cryptocurrency mining is the procedure of authenticating the transactions carried by other entities using a computer and then entering them into the extensive public database of transactions referred to as the block chain. In return, you get rewards in the form of cryptocurrency. Related Post: Make Money with Cryptocurrency

3. process about how cryptocurrency mining is done • In the event a transaction is made over a block chain, the related data must be recorded, which means it is added to a block. In this case, a transaction can be in the form of a single user sending some coins to another user’s address. • However, the block in question requires security and encryption. For this reason, it is up for grabs by all the contributing parties on the network.

4. Consequently, to encrypt this block, a miner must resolve a cryptographic puzzle using a guess-and-confirm approach such that he/she identifies the relevant cryptographic hash for the block in question. In typical circumstances, a miner needs an extensive gear of dependable, application-specific hardware to stand a good chance of being the first to authenticate and secure the block. • When the block is mined by a miner it is applied to the block chain. However, it still requires verification by other nodes (computers) on the same network. This procedure is commonly referred to as consensus.

5. Finally, in the event, a miner authenticates and secures a block, a newly produced coin is awarded to him/her. This procedure that involves being rewarded for work is known as Proof of Work. Read More: Unique Ways to Earn Cryptocurrency