Mining is a peer-to-peer computer process used to secure & verify transactions-payments from one user to another on a decentralized network.
Mining involves adding transaction data to the global public ledger of past transactions,
securing blocks, groups of past transactions, on the blockchain ledger and
verify that transaction has not yet happened.
Finally, the blockchain serves to confirm transactions to the rest of the network as having taken place.
Crypto currency nodes use the blockchain to distinguish legitimate transactions from attempts to re-spend coins that have already been spent elsewhere.
What is Proof-of-Work ?
Proof-of-Work functions (short: "PoW") are used to protect against double-spending, which also makes the ledger immutable. Individual blocks must contain a Proof-of-Work to be considered valid. This PoW is verified by other crypto currency nodes each time they receive a block. Mining is intentionally designed to be resource-intensive & difficult so that the number of blocks found each day by miners remains steady over time, producing a controlled finite monetary supply.
How Does Mining Create New Bitcoins ?
The primary purpose of mining is to allow nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce new crypto coins into the system. Miners are paid transaction fees and as well as a subsidy of newly created coins, called block rewards. This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system through mining.
How can I become a part of it ?
Build your own crypto Mining Farm using energy-efficient coin mining hardware (Bitmain 7nm AntMiner S17 Pro-56TH/s or newer). Bitmain in Shenzhen, China, is a leading crypto hardware & technology company, providing massive "Hashing" power, the calculations to provide the blocks for the crypto currency blockchains.
You can as well join Cloud Mining with Cloud Mining Contracts (see bitcoin.com or others).
As mining difficulty rises because hashing power rises, the mining hardware has to improve as well.
In the early days, simple PCs could be used to perform the tasks of bitcoin mining. While hashing power and difficulty rise over time, a PC or USB stick or additional graphics cards won't do the job efficiently today. Today, energy efficient crypto mining hardware (7nm at 36.00 J/TH) is produced at companies like Bitmain in Shenzhen, China, a leading crypto technology and AI company, or BitFury.
In case of questions, don't hesitate to contact us from www.digiGeek.ch !