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Web 3.0 Tech

Here’s what you don’t know about cryptocurrency mining

Written by : joel nzoda on Digilah (Tech Thought Leadership)

Bitcoin transactions are secured. To this end, miners perform mathematical calculations for the Bitcoin network with their computer equipment.

As a reward for their services, they collect the newly minted bitcoins along with the fees from the transactions they confirm. It is halved approximately every four years. On May 11, 2020, this reward increased to 6.25 bitcoins per block.

Miners (or miners’ cooperatives ) are in competition and their income is proportional to the computing power deployed.

“To describe mining, one could use the example of a gigantic sudoku contest where participants start a new grid as soon as someone finds a solution, and whose difficulty adjusts so that on average a grid is resolved every ten minutes. Imagine a giant sudoku grid, with several thousand rows and columns. It would be quite easy to verify that a completed grid is well filled. But […] it will take a lot of work to finish it! The difficulty of the grids can be adjusted by changing their sizes […], but they can still be checked easily even if they are very large. The puzzles to be solved in the bitcoin network are based on cryptographic hashes and have the same characteristics as these sudoku grids: they are very difficult to solve but it is very easy to verify that a solution is correct, and their difficulty can be adjusted. –Andreas M. Antonopoulos.

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Web 3.0 Tech

How to mine bitcoins? In Europe

Written by : joel nzoda on Digilah (Tech Thought Leadership)

Bitcoin mining is rarely a profitable business for individuals. Bitcoin ‘s popularity has generated huge competition which makes it inaccessible.

Most often only industrial sites manage to profit from this activity. Before you venture into this adventure, I invite you to read the (already old) testimony of Greg Ryder and to visit the space dedicated to mining on the Bitcointalk forum .

Note in passing the existence of companies that practice the “cloud mining and sell computing capacity to their customers who receive in exchange the fractions of mined bitcoins, after deduction of management fees. Be careful though, some services are often very disappointing, when it’s not just pure scams. In general, even if practiced seriously, cloud mining is rarely profitable.

Practiced on French (or European) soil, cryptocurrency mining is only recommended for people who have, for domestic purposes, their own green electricity generator (solar, wind, geothermal, hydraulic) without having the possibility of reselling production surpluses on the public network.

Another possibility to make mining rational in France is to use the heat produced to produce hot water, this is the proposal of the French startup WiseMining.

Most searched question

What is cryptocurrency?

What is bitcoin and how does it work?

Most searched queries

Ethereum price

Bitcoin price

 

Hello readers! Hope you liked what you read today. Click the like button at the bottom of this page and share insights with your colleagues and friends!

For more such amazing content follow Digilah