Mining encrypted currency can be very profitable if the computing power of the mining device is very high, too mining the encrypted currency can be costly. Encoded currency mining recently we hear many positive and negative news from many quarters. Many people earn $ 1 million from mining and others lost their computers for misunderstanding the mining of encrypted currencies, because they are downloading the encrypted currency on their weak computers that will race with giant computers dedicated exclusively to coin mining
How is encrypted currency mining?
I will simplify you, for example, you will add Bitcoin on a computer dedicated to simple services. First, the blockchain program should download the entire currency, which is currently over hundreds of gigabytes, to make a copy of it (the decentralized nature of the blockage). After that, the race will be with mining computers in the network (Genesis Mining). Therefore, your computer will race with Genesis Mining as an example.
One in the Bitcoin mining network, to solve the problem, here your computer will execute the software command in the blockchain, which requires high computer power, and electricity, (the computer is not human, when it senses that its energy has reached the maximum will expect to rest, Giant even the last force in him, and in the end The computer will reach its maximum and will be damaged because the difficulty of mining is very large, especially those capable of mining Bitcoin, only the owners of large computers such as that at Genesis Mining
First, what is the encrypted currency?
To understand the subject of encrypted currency mining, we need to know and understand what the currency is originally encrypted. The originally encrypted currency is a non-physical digital currency based on cryptography for secure transactions. Currently there are hundreds of different encrypted and different value currencies. Many experts believe it is the future of the currency
The most popular encoded currency currently is the currency of Bitcoin, followed by etherium, and other currencies that are rapidly developing, such as cash, leitcoin, dash … These are all coded currencies whose algorithms differ, but all depend on a protocol called the buccaneer, defined by the following important lines
Hashing or Retailing is a mapping function for lines of data of different lengths to produce a final fixed length. The most popular fragmentation algorithm is SHA-256. Which has a solution to mathematical problems in one direction, note the name of the function one-way function, which means that you can never return from the Hash output and extraction of the original data, and theoretically cannot find different data have the same Hash.
Finally, any change, even one bit in the portal will produce a completely different product from the above. Each retail value is the only one that cannot replicate, or has a copy this cannot falsify transactions in because even the smallest change in the fragmented data caused the entire value to change. This is how the blockage works. It relies on Hashing to analyze and validate transactions
That is, when a data transfer of value or anything on the blocchain is entered, it is encrypted in the block, and the computing power decomposes and decodes those data with the standards and data of those buccaneers, and anything or data that is questionable or not belonging to those blockers conversions or illegal transactions The block is rejected, and the final decomposition is not produced. Upcoming theme is about Hashing or Retailing