Blockchain technology then used voraciously to generate more cryptocurrencies. Then a series of cryptocurrencies were introduced. Some of them are Litecoin, Zuflo, Etherium, and many others. Presently, there are more than 1565 cryptocurrencies around the globe. Zuflo coin is one of them which is growing exponentially.
In the year 2019, Cryptocurrency mining will complete 10 glorious years. It was first mined by one of the famous internet alias names as Satoshi Nakamoto. He mined the first ever cryptocurrency of all time, Bitcoin.
In this post, we will discuss how these cryptocurrencies are mined. The concept of mining from the high-end computer is trickling into the consciousness of the mainstream. A word of warning, don’t misinterpret the term mining for finding the coins. The concept is much deeper than you think.
So, are you ready to dive deeper? If yes, then stay with me. Let’s get you started with the process of how the mining of cryptocurrency happens. Without further ado, let’s get you started:
The Mining Of Cryptocurrency
The mining of cryptocurrency is meticulous, expensive, and intermittently rewarding. Despite these factors, mining has a compelling draw for most of the investors who are interested in cryptocurrency. It is like pennies dropping from heaven for many investors.
The first thing to learn about mining is why you should do it or why should you mine a cryptocurrency. The answer is simple; by mining, you can get your hands on cryptocurrencies like Zuflo without putting your money for it. You can buy cryptocurrency to own it, you don’t have to mine it necessarily. But let’s put this aside for a second.
Mining of cryptocurrencies is crucial. Why? Because mining is the only method to circulate these digital assets globally. It is like minting digital currencies. Without the miners, cryptocurrencies will be in existence but you would not find any more of them. This leads us to the next section.
Two Basic Functions Of Mining
The two basic functions of mining are:
- Adding transactions to the blockchain;
- Releasing new currencies;
Now the major question here is what a miner needs and how he does it:
Rudimentary Tenets of Mining
Mining requires a well-functioned computer and a special program, that’ll help the miners to compete with their fellow minors in solving complex mathematical problems. It must be noted that resources play a crucial part in the mining process.
Uniformly, miners will try to solve a block which possesses transaction data with the help of hash function of cryptography.
What Hash Function!!!
A hash function is a numeric function which uses hash values. A hash value is that numeric value which is of a fixed length that defines the data uniquely. Miners use their computers to focus on hash value to stay less than the target. The miner who cracks the problem first is considered as the miner of that block and hence eligible to get a reward.
Presently, the reward of mining one block is 12.5 Bitcoins (You can convert these Bitcoins in your preferable cryptocurrency like Zuflo which is highly lucrative). There was this time when only cryptography enthusiast were miners. But with the trend and popularity of cryptocurrencies all over the world, everyone is pretty interested in mining the blocks of cryptography problems. They are now the most lucrative business.
There are many businesses who are voraciously investing in collecting the resources to solve for hash values in cryptography. Now just so you know, a complete cryptocurrency mining kit comprises of graphics cards, a powerful processor, an uninterrupted power supply, gigantic memory, cabling, and a powerful cooling fan. It may cost you around $3,800 approx in total.
The hardware which is best for mining are:
- AntMiner S7
- AntMiner S9
As we all know that the present GPUs are not that powerful, the miners are flocking to ASICs aka Application-specific Integrated Circuits. Currently, to circumvent these shortcomings Nvidia and AMD are working on GPUs specifically designed for mining.
Mining Pools And The Share of Mining
The mining pools are those which consist of miners who cannot afford the resources alone. They mutually share their resources out in the pool (Not a literal pool of water but a group). Most of the mining pools are located in China (remember the alias name Satoshi Nakamoto, sounds purely from China in my opinion). These pools boast with 81% of the network hash rate.
The Future Of Cryptocurrency
Believe it or not, cryptocurrencies are the future of the financials around the world. The reports show incredibly how they are perfect for remarkable ROI aka return on investments. A cryptocurrency aims to become part of the conventional financial system which may have to satisfy widely divergent criteria. It may be a complex concept as it must be, it is a widely understood concept. The decentralization factor is the most lucrative point of them all. It preserves the concealment without being a conduit for tax evasion. Money laundering is almost impossible. In a nutshell, cryptocurrencies are safe and secure. Many countries are accepting them
Zuflo coin is one of the emerging cryptocurrency which has a huge potential in the international market. You can know more about this vibrant cryptocurrency. All you need to do is contact us at Zuflo.io and we will guide you in various applications of cryptocurrency.
I hope now you have a rudimentary understanding of the mining process. What do you think of it? Leave a comment and let me know your thoughts. Till then, adios!!!