Il mining criptovalute refers to the mining and subsequent verification of digital currencies, i.e. cryptocurrencies. It is a decentralized calculation process that allows the correct settlement of cryptocurrencies.
Indeed, ever since the Bitcoin software was launched in 2009, the financial sector has been inundated with so-called cryptocurrencies.
So regardless of banking and national dynamics, anyone can generate cryptocurrencies to earn real currency. In this article we will go deeper into this topic, explaining in detail what the mining di criptovalute and how does it work. So as to understand if everyone can have access to this process of creating new digital currencies.
What is cryptocurrency mining
Il mining di criptovalute it’s a decentralized computing process which aims to protect, process and verify every transaction concerning cryptocurrencies. This is performed by virtual coin miners, who have the ability to carry out transactions of any type of cryptocurrency through solitary mining or in mining pools, providing the right computing power to solve more complex tasks.
Basically it can be said that the meaning of “undermining cryptocurrencies” it is precisely the creation of new units to validate the transactions that are carried out in the blockchain.
The term mining derives from the English “to mine” which means to extract, referring precisely to the gold mines so popular at the end of the nineteenth century.
Mining therefore has the objective of identifying the work done by computers, identifying the nodes of the network with the aim of earning new tokens. In fact, miners achieve the inherent goal of creating a new virtual currency only if they are the first to solve a series of highly articulated mathematical problems.
We wonder if mine cryptocurrencies be sure, the answer is yes. As we know both Bitcoin and all other cryptocurrencies are decentralized, i.e. they are not subject to the control and supervision of government supervisory authorities. In order to ensure maximum reliability, all transactions are recorded in the blockchain, through a sort of public register in which the operations performed are marked in chronological order.
How cryptocurrency mining works
Il mining di criptovalute it is supported by the blockchain ecosystem, thus managing to favor the creation of new blocks. This is precisely the only way to generate new units of cryptocurrencies, all based on proof-to-work protocols. If you are wondering which cryptocurrency should be minedthe answer is definitely there Ethereum and the Bitcoinsince they are the best known and used for this purpose.
The mining process has the ultimate goal of achieving the reward. To achieve this, miners must necessarily solve mathematical algorithms and guess a particular value to add to the other information present in the block, this then generates a code called hash.
Il codice hash is a 64-digit hexadecimal destination number consisting of letters A through F and numbers. It is a unique code, as if it were a sort of fingerprint useful for recognizing the block and protecting data transferred over a network.
When the miner finds the solution, i.e. one of the missing numbers in the hash, then the block can be validated and those present in the network will have to confirm the accuracy of the result in order to attach the new block to the already existing chain . This particular mechanism is called proof-of-work and has the reward for the miner as a final result.
In the case of Bitcoin for example, a new block is generated every 10 minutes. It is estimated that by 2140 the last Bitcoin will be minted and put into circulation, making the mining process increasingly expensive and complex.
What it takes to be able to mine cryptocurrencies
From what you can guess, run the mining di criptovalute it is a complex process that requires particular tools and essential steps. In detail, it is first of all necessary to purchase hardware that has a considerable computing capacity and a cooling system. In this you need to install special software to perform cryptocurrency mining, and then open a wallet.
It should be noted that large computing powers are required to perform mining, and therefore it is essential to have a functional video card capable of consuming little. You also need to have software that can take care of data processing.
In any case, these are expensive equipment and tools, and not within everyone’s reach, but they are certainly indispensable in order to be able to undermine new virtual currency.
Many wonder how profitable it is to run the mining di criptovalutethus managing to generate income. The increase in popularity of Bitcoin and other cryptocurrencies, however, have increased the difficulty of calculation, and therefore the possibilities of revenue decrease drastically.
Furthermore, not all cryptocurrencies are easy to mine, and often these are operations that can be unprofitable.
For example in the case of Bitcoin, it is estimated that every 4 years or so, the reward of mining is halved, reducing the earnings of the miners. To this problem we must add the fact that it is not easy to be the first to solve the calculation combination that leads to understanding the right hash to close the blockchain. Not to mention that the computers used 24 hours a day to generate calculations use a considerable amount of electricity, which is an unsustainable cost.
Which cryptocurrency should be mined
The cryptocurrency par excellence that fits perfectly with the rules of mining is undoubtedly Bitcoin. In any case, all those virtual currencies that are decentralized and based on the validation system can be mined proof-of-work. The second most famous cryptocurrency is the Ethereum which is created precisely through mining, until the Ethereum 2.0 protocol is activated.
Among others suitable for this goal we find: Bitcoin Cash, Litecoin and Dogecoin. For the lesser-known cryptocurrencies that you can mine, it is always recommended to gather the right background information before doing anything.
To choose the most convenient cryptocurrency to mine, you need to evaluate the hashing power provided by the network.
How to mine cryptocurrencies: here are the solutions
More and more individuals decide to become miners to extract new cryptocurrencies. But to do this you can follow two different paths:
- il mining solitario;
- il mining pools.
Let us analyze them in detail below to understand their characteristics and substantial differences.
Il mining solitario plans to tackle the cryptocurrency mining process autonomously, and therefore by performing the verification of the individual blocks directly in person. To do this you need to use a computer that is equipped with suitable hardware and software, and that can support the computing power.
In this case the initial investment will be huge, and it is certainly an aspect that should not be underestimated. In fact it will be necessary to add the purchase of the devices, the cost of energy and the Internet line.
Especially if you want to earn through mining, it will be essential to operate with very advanced technological tools, which are able to enhance the calculation speed of each computer so as to follow the hashing algorithm as quickly as possible.
One of the most powerful tools to achieve this goal are new integrated circuits such as ASICS, an acronym for Application Specific Integrated Circuit.
Il mining pools
Being able to mine cryptocurrencies using your own computer could prove to be a very difficult and complex task, as the computing power of the PC represents less than 0.001% of the computing power of the network.
This means that a lot of time can pass before being able to validate a given block, making it impossible to mine cryptocurrencies.
To be able to perform the best mining di criptovalute then they were born mining poolsthese are companies that work to manage groups of miners, in this way the calculation capacity for the creation of the same block can be saved.
Therefore, more miners are guaranteed to combine computing power, using a server that is used as a link that has the ability to keep the pace of block production constant.
Through this system all the participants are able to obtain gains that otherwise they would not be able to achieve individually.