What is cryptocurrency mining? understand how it works?
Cryptocurrency mining is a process that aims to validate and include new transactions on the Blockchain. To find gold, prospectors and mining companies excavate land and rivers in search of precious metal. The stonier or deeper the extraction site, the greater the need for equipment such as rigs, excavators, and dredgers.
Cryptocurrency mining is similar. To “extract” Bitcoin (BTC), groups of people and companies dive into the digital currency network in search of some units. The more complex and competitive the search, the more powerful computers they need.
In this guide, we explain how mining works and what it takes to get started in this profitable and complex activity. In addition, it also shows the relationship between the “extraction” of digital assets and the environment.
What is cryptocurrency mining?
Cryptocurrency mining is the name given to the process of validating and including new transactions on the blockchain, a huge public database that records the history of user movements. As a result, new digital currencies are created.
In other words, mining is responsible for putting more cryptocurrencies into circulation, just as a central bank does when “printing” money. The difference is that, in the case of digital currencies like Bitcoin, there is no authority managing the process - everything is governed by algorithms.
The Bitcoin algorithm, for example, is called Proof of Work. This protocol establishes the steps for the system to work, such as what to do when a transaction is carried out, how to structure it in a certain format, and how it should be validated and organized.
BTC, along with the entire mining process behind the asset, “came to life” on October 31, 2008. That day, a person – or a group – hiding under the alias of Satoshi Nakamoto released the white paper (manual) from the project. Since then, thousands of cryptocurrencies have been created, and most of them are “manufactured” in the same way as BTC.
Cryptocurrencies can be mined with some powerful mining machines like Antminer L7. This new model is intended for the most powerful miner for mining Litecoin and Dogecoin with a max hash rate of 9.16 Gh/s for a power consumption of 3425W.
The user interface of Antminer L7 has been carefully designed with the needs of users in mind, all you have to do is enter your wallet address and mining pool settings before you start mining. The User Interface allows you to select your preferences and update the firmware easily.
