Hello! Friends,
One of the interesting part of cryptocurrency is mining. For those that get involve in mining might say, mining is difficult while those of us that do read about it might look at it as something easy to venture into. Is mining really easy? Is it difficult? What are the important things to know about mining and what is the best coin to mine if someone is considering of starting?
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**Pixabay**: [Mining](https://pixabay.com/vectors/miner-mining-mine-minerals-4398005/)</sub></center>
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In this article, I will share with you some important information about mining. Sit tight and let's learn together.
Firstly, for the benefit of those that just venture into crypto world let me start with little explanation of what mining is.
**What is Mining in crypto space?**
Mining is defined as a process in which transactions are checked in order to see if they all follow the network rules before confirmation. The people that carry out this exercise are called miners and they are encouraged to carry out all necessary checks and also verifications financially. This little exercise comes with fees that are collected from all users of the network which is usually paid when sending their transactions. During the verifications process, their is a production of new currency by the miners which will be released after the confirmation has been carried out and a new block of transaction is added to the chain for the completion of transaction. This work carried out by miners will be proofing and rewarded and we called the rewards **Block Reward**.
When you are thinking about mining, you consider this basic things:
- Computer
- Internet
- A special piece of software
Software is like the processor which can be found at the github repository of any cryptocurrency you are ready to mine. Some of the cryptocurrency has there software built with their wallet, like Electroneum and Monero.
**Let's look at crypto mining breakdown**
Due to the fact that, Bitcoin is the first cryptocurrency, let me base the coin analysis on Bitcoin. The process of mining in crypto space follow almost the same pattern. Little discoveries about the mining process:
The computer is the system that checks all the waiting transactions against the block chain just to ascertain there are no coins spent twice and also to verify that their is enough balance from the wallet sending Bitcoin transaction that is being processed.
- After the 1 above is confirmed, the system (computer) bundles all the verified transactions to what is called block
- After a block has been formed, the miners comes in to solve puzzle which will be published (block) on the chain. The puzzle been solve is a guess work hash of the block.
The hash mentioned is the produced by means of cryptographic algorithm which turns text (transactions amounts, senders and receivers) into single string of characters.
- After the guess work completed by the system, and the correct combination of numbers of hash and the letters proofing, the block will be published at the end of the chain.
**Is mining difficult?**
It may looks like it's difficult, I know you will start to think how will miners continue to do this without making mistakes? The certainity of crypto mining is, the automation that exist within the operation allows the network change the difficulty of problems ready to be solved at every time T. The changing is to ensure release of coins at a steady rate and the more the miners on a network, the more difficulty within the network. The more the difficulty within the network to solve the more profit generated by the miners.
As a miner, if the hardware you use is only limited to GPU units, is best to settle down with coin that has lower difficulty when considering mining.
I will continue to discussion on my next article.
Stay cool!
hiveblocks