What is Mining?

Date: 18.08.2021

Cryptocurrency mining is the process of receiving a reward for generating keys that create a new block in the blockchain.

Mining can be divided into three types:

  1. Home mining. People extract cryptocurrency at home using powerful graphic cards. They also purchase additional hardware and organize a "home farm."
  2. Industrial mining. In this case, miners use specialized hardware called application-specific integrated circuits (ASIC). These solutions have the most efficient power-to-energy ratio.
  3. Cloud mining. In this case, miners rent mining equipment, which may be located on another continent. That is, you pay a fixed amount without going into details.

There is also the concept of a mining pool, which implies the unification of miners under a single server. The more computing power the pool members' equipment has, the higher the probability of signing the next block by the pool.