Cryptocoin mining is the process through which transactions are verified and added to the public ledger, known as blockchain, and also the means through which new cryptocoins are released. Lately, the concept of cryptocurrency and mining has been linked with Bitcoin in the eyes of many, however, one cannot mine Bitcoin with regular computers anymore. The mining of Bitcoin requires specialized and expensive hardware called ASICs.
Moreover, to avoid further misunderstanding, you won`t even mine through opening a link or through subscribing for a „channel“ which promises unbelievable return on investment within a few days. Don`t be naive...
Let`s check how altcoin (cryptocurrency other than BTC) mining works.
Each of the altcoins i.e.: Callisto, Ubiq, Music Coin, Pirl, WhaleCoin, Expanse, Metaverse, Ellaism, DubaiCoin, Ethereum, Ethereum Classic rely on the core concept of blockchain. Cryptocurrency was designed to be decentralized, secure and unchangeable. So every single transaction is encrypted. These transactions are added to a block until a fixed number of transaction has been recorded. That block then is added to a chain that can build up to an infinite number of blocks. Owing to the privacy, decentralization and encryption of the transactions the blockchain can`t be manipulated or controlled.
As these blocks are heavily encrypted, they are similar to complicated mathematical puzzles that only a powerful hardware (i.e. a mining rig equipped with Radeon or Geforce GPUs) can solve. The process of solving the math puzzles on these blocks and adding them to the public blockchain (a ledger) is what mining means.
Miners verify the transactions. The reward for doing so is payment in that block's coin, e.g.: Callisto, Ubiq, Music Coin, Pirl, WhaleCoin, Expanse, Metaverse, Ellaism, DubaiCoin, Ethereum, Ethereum Classic, etc. The payment is based on how much their hardware contributed to solving that puzzle.
By design, that's exactly how the coins are created. The block is solved and coins are distributed fairly to miners. The mining pool automatically pays the miners directly to their wallet.
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