( 2nd September 2019 )
Mining Background
Cryptocurrency mining, or crypto-mining, is a process in which transactions for various forms of cryptocurrency are verified and added to the block chain digital ledger. Cryptocurrency mining has improved both as a topic and activity as cryptocurrency usage itself has grown exponentially in the last few years.
Each time a cryptocurrency transaction is made, a cryptocurrency miner is responsible for ensuring the authenticity of information and updating the block chain with the transaction. The mining process itself involves competing with other crypto-miners to solve complicated mathematical problems with cryptographic hash functions that are associated with a block containing the transaction data.
📷 The first cryptocurrency miner to crack the code is rewarded by being able to authorize the transaction, and in return for the service provided, crypto-miners earn small amounts of cryptocurrency of
hash rates which helps increasing the mining reward.
Fig: Block chain Life Cycle
In thisChapter, we’ll discuss the complete mining methodology which helps the beginners to learn and setup their own cryptocurrency mining environment by using multiple mining hardware (i.e. CPU, GPU and ASIC).
Introduction to Mining Hardware
The cryptocurrency miners have used various types of mining hardware over time to mine blocks. Depending upon the network configurations and difficulty factor, hardware used for mining may include Central Processing Unit (CPU), Graphics Processing Unit (GPU), Field Programmable Gate Array (FPGA) and Application-Specific Integrated Circuits (ASIC) devices.
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