There are more than 1400 cryptocurrencies as of today. And mining a cryptocurrency is not the same it used to be, like today you cannot use regular computers to mine cryptocurrency. You need a specialized and expensive hardware called ASICs. The product line of ACIS is designed using the software component technology that provides the functionality to use only the components it requires. More than one component is available either from the Spatial party vendor or a third party vendor so that the application developers can use the component to meet their needs.
In our website, we’ve discussed what Cryptocurrency is and how it is different from the Government issued Fiat Currency. What happens with Fiat currency is the government simply print money and distribute it via the central banks. But in case of Cryptocurrency, crypto coins aren’t printed, they do not have a physical value meaning you cannot hold it in, you cannot put it in your wallet or sachel or purse. In order to get Cryptocurrency or discover them, you’ve to mine them just the way you dig deeper into the ground and get hold of gold. But Cryptocurrency cannot be dug, and you cant mine it using a jackhammer. The mining of Cryptocurrency is carried out using computers all around the world and the best part is your computer has to compete with million other computers to get the mining done.
Let me tell you how we transfer money using some banking system. Suppose, I’m transferred 4$ to my friend via banking channel, and after I transferred the amount I need to have some proof that the transaction is confirmed. And this transaction is confirmed by the bank, we all know this basic procedure, right?
Well here, Bank acts like a central authority that confirms the transaction and records the amount transferred in its ledger and this is shown to us in our Bank Statement/Passbook and then we get the assurance that the transaction has taken place. But as Cryptocurrency is Decentralized there’s no central authority to verify the transactions made. And this is where the miners come in.
In Cryptocurrency, the miners confirm all the transactions taking place and they record it in a public ledger called Blockchain, and then it is passed to other miners for validation and this is how the miners are rewarded but there’s a small catch, the first cryptocurrency miner to validate the transaction will be rewarded. In simple words, if 100 miners are trying to validate a transaction and one of them finishes validating the transaction first then he/she will be rewarded.The reward is the only reason why there are so many miners in a Cryptocurrency network and as the number of miners increases, the validation of transaction is secure. The Proof-of-Work consensus determines that the Blocks are added to the Blockchain.
To start mining all you have to do is get in front of your computer and run a special program that helps miners compete with their each other in solving mathematical problems. Mining requires a very powerful computer or a mining rig. Initially, people were using powerful processors to mine Cryptocurrency(Bitcoin) but it was discovered that if you use powerful GPU in addition to a powerful processor, you’ll have an efficient mining rig. And if you do not want to build or assemble a powerful CPU and still want to mine then you can get yourself a mining rig and start mining.
Initially, the Cryptography enthusiasts served as miners but after Cryptocurrency gained popularity and increase in value, mining is now considered as a lucrative business. All you have to do is spend some money and get yourself a rig and run a special program and voilà, you are officially a miner.