4 . Introduction to Cryptocurrency Mining | Steemit Crypto Academy | Lesson 4



crypto currency mining.PNG

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Dear Friends,
Today we are starting a new topic. My first 3 lessons provided the fundamental knowledge which is required for a newbie who is entering the crypto currency industry. I like to invite you to go through them if you need the basic knowledge to start trading.

Lesson 1 - Introduction to cryptocurrency trading
Lesson 2 - Introduction to cryptocurrency trading
Lesson 3 - How to spot trade ? Everything a beginner need to know

Today I'm going to discuss about cryptocurrency mining with you. Crypto mining is a wide topic. There are different methods and technologies used and need to get a overall idea about everything to be a successful miner. So my dear friends , let's see what is crypto currency mining.

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What is Cryptocurrency Mining ?


The conventional method of issuing a fiat currency is governed by a central government of a country . For crypto currencies , the story is different as the majority of cryptocurrencies decentralized. So there is no one to verify the transactions within the network. This part is done by crypto currency miners. Let me explain this simply like this , Crypto Currency Mining is the process where a computer / machine performs a task and earn cryptocurrencies. That task here is the process of verifying crypto transactions (solving mathematical equations ) and inserting them to the blockchain. So as you can see Crypto Currency Mining is the process which keeps these crypto currencies active by enabling their transactions. Let's understand this process with a simple example.

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If you look at the above diagram , Simon wants to do a payment to James using bitcoin. So Simon login to his bitcoin wallet with private key and requests a transaction to James bitcoin wallet for the payment amount. After submitting the transaction request , that request is bundled in to a block , in blockchain network with other blocks. This new block is broadcasted to all the mining nodes in bitcoin blockchain network . Then the process called mining starts. These nodes validates this transaction through processing mathematical algorithms. The miner who validate this first gets a amount of Bitcoin ( or the currency mining ) as a reward. Now after the validation , the transaction is confirmed and completed with a new permanent block added in to the blockchain.


[Source : https://www.youtube.com]

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What is Proof of Work ?


This is commonly called PoW. A blockchain network of a particular cryptocurrency is a series of blocks. These blocks in a blockchain have a set of data or a chain of data which we call "nonces". These data chains are attached each block of the blockchain network. They are like a group of memories , we call it mempool. When mining the particular cryptocurrency , the miner ( computer/machine) need to find the correct nonce by processing complex mathematical computations. They need to continue it until the exact data string is processed. This process is called Pow , which is a set of complex steps. When the miner found the complete hash value , it announce it to the blockchain network and other nodes will validate it. Then a new block is created. This procedure is called the PoW. PoW algorithms shows a great resistance to different attacks on networks but the power consumption is high, which is a disadvantage.

What is Proof of Stake ?


PoS(Proof of Stake) can be considered as an alternative to PoW (Proof of Work) to create blocks in a particular blockchain. In PoS, block producer is called a validator instead of a miner. A validator must keep a deposit / hold and stake to participate the process of creating blocks in a particular blockchain.. In PoW, as I explained before the miners compete each other to create a new block. First miner to complete and produce a block will be rewarded. This is the miner with maximum computational ability. But in PoS, the validators are selected based different mechanism. Here the algorithm which select the validator consider the amount they stake. When the validator is selected through the algorithm , it get the authority to create the block. So other validators do not need to waste their processing power and energy as they are not selected at first. This will save lot of energy compared to PoW.

Proof of Work and Proof of Stake differences compared clearly in the following video. Please go through it to get a clear idea.

[Source : https://www.youtube.com]

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What is a Mining Pool ?


Mining pool is simply a group of individual miners who work as a team to increase their probability of completing a block. The chance of finding / solving a block as a group is higher compared to individual. So what happens is , through this mining pool concept miners combine their computational ability together. So as a team they have a higher processing ability and it will give the output quickly. When considering the rewards, the reward earn through mining pool is divided among the members of the pool. So the income is comparatively high compared to individual mining.
There are number of mining pools. Most of them are designed to mine a selected crypto currency. Some of them allow to select between a set of cryptocurrencies. When selecting a mining pool we have to consider the hashrate , pool size , currency , terms and fees , payout options and amounts etc. After selecting a particular mining pool you need to configure the hardware and software accordingly. After that you can start mining. I will mention some leading mining pools. You can check them out. Poolin , F2Pool , AntPool , Houbi.Pool ,ViaBTC etc.

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You can check the live data of different mining pools from here

For this topic there are lot of areas to cover. We need to learn about mining hardware's ( and different methods of mining (CPU mining, GPU mining -Nvidia 2060 |AMD 5700 XT , ASIC mining -Antminer Z15 |Toddminer C1, Cloud mining -Hashflare |Genesis Mining ) . And we need to discuss about crypto mining software's (Claymore , MultiMiner , CGMiner etc) . Let's discuss them in out future lessons.

Thank you

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Homework Task 4

You need to do your own research and create an article discussing following topics,

(1) How crypto currency mining works ?
(2) What is Mining Difficulty ?
(3) What are the challenges for crypto currency miners ?


Guidelines


• Your homework post should be posted in crypto-academy community.
• Your article should be at least 300 words.
• You have to create a simple guide in a way a newbie can understand and follow the steps.
• No plagiarism please . You can use images taken from copyright-free sources mentioning the source.
• The final submission date will be 07/03/2021
• Add tag @besticofinder in your post, it will help me to find your submission. Use #cryptoacademy and #besticofinder-week4 , so that Steemit Team can find you.

Thank you.
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Cc:-
@steemitblog
@steemcurator01
@steemcurator02

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cryptoacademy #trading #begginers #introduction #besticofinder-week4 #mining


Comments 233


Dear @besticofinder

APPICS is the easiest way to share pictures & videos on the blockchain and get rewarded with both STEEM and APX tokens! 📱

I'd like to invite you to join our mobile apps for iOS and Android, where you can simply login with your steemit account and start getting rewarded for your passion. APPICS is the most engaged dApp in the STEEM ecosystem!
If you are on iOS, please visit ios.appics.com and download the app directly from there. If you are on Android, please sign up at softlaunch.appics.com with your google play store email address so that we can invite you and send you an exclusive download link via email!

Team APPICS

Everything you need to know about APPICS: https://linktr.ee/appics
Visit our Website: https://appics.com
Join us on Telegram: https://t.me/appics_official
28.02.2021 17:08
0

helpful indeed 👍

28.02.2021 17:11
0

Thank you

01.03.2021 18:30
0

wc bro

02.03.2021 02:50
0

This image explained it very well, very helpful post dear 💖
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28.02.2021 17:19
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Thank you

01.03.2021 18:30
0

Excellent article professor, I was wondering if I could translate your publications into Spanish?

=)

28.02.2021 18:58
0

Thank you. Yes , no problem you can translate and share.

01.03.2021 18:31
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Interesting topics and Amazing set of questions professor. It will be very interesting to do these.

And also check my homework of previous week. I had done that . 😁
Thank you...

01.03.2021 05:25
0

Hi , I will check it ASAP

01.03.2021 18:31
0

Dear!
@besticofinder. Your details about mining system and cryptocurrency mining is really very nice. Images and words are so accurate that can be understand easily by newbai as well as others. My homework week 4 is here.
https://goldvoice.club/steem/@azamrai/crypto-academy-week-4-homework-for-besticofinder

Thanks

01.03.2021 08:10
0

verified. Thank you

06.03.2021 18:12
0

Dear! @besticofinder
It is your greatness to behave well.

06.03.2021 18:32
0

i am learning from this post..

01.03.2021 11:25
0

Thank you

06.03.2021 18:12
0

Verified. Thank you

06.03.2021 18:12
0

verified. Thank you

06.03.2021 18:13
0
01.03.2021 13:54
0

Thank you I will review ASAP

01.03.2021 18:30
0

thank you so much sir

01.03.2021 19:04
0

verified. thank you

06.03.2021 18:16
0

Thankuh. For verification

07.03.2021 18:25
0

Thank you @besticofinder for providing this wonderful lesson. Cryptoacademy have really helped me to gain knowledge about cryptocurrency and i look for to participate in the next lessons. Below is the link to my homework task:
https://goldvoice.club/steem/@reminiscence01/steemit-crypto-academy-or-homework-task-4-for-besticofinder-or-introduction-to-cryptocurrency-mining-or

01.03.2021 18:15
0

verified thank you

06.03.2021 18:17
0

Super interesante @besticofinder

01.03.2021 19:41
0

Thank you

06.03.2021 18:17
0

verified , Thank you

06.03.2021 18:17
0

verified , Thank you

06.03.2021 18:18
0

Thank you for this awesome lesson
@besticofinder
This is my submission for my post for week 4 below.

https://steempeak.com/hive-108451/@mandate/crypto-academy-week-4-homework-post-for-besticofinder

01.03.2021 22:29
0

verified , Thank you

06.03.2021 18:18
0

Hi! Thanks for sharing this information
I hope you can give a look to my drawings. 🤗💜

02.03.2021 00:03
0

Thank you

06.03.2021 18:18
0

verified , Thank you

06.03.2021 18:18
0

verified. Thank you

06.03.2021 18:23
0

verified. Thank you

06.03.2021 18:24
0

Thank you

06.03.2021 18:25
0

here is my home work for this week i did it yesterday forgot to drop the link here

https://goldvoice.club/steem/@azizulhassan/crypto-academy-week-4-homework-task-3-for-besticofinder-by-azizulhassan

02.03.2021 14:08
0

verified . Thank you

06.03.2021 18:07
0

Dear @besticofinder

APPICS is the easiest way to share pictures & videos on the blockchain and get rewarded with both STEEM and APX tokens! 📱

I'd like to invite you to join our mobile apps for iOS and Android, where you can simply login with your steemit account and start getting rewarded for your passion. APPICS is the most engaged dApp in the STEEM ecosystem!
If you are on iOS, please visit ios.appics.com and download the app directly from there. If you are on Android, please sign up at softlaunch.appics.com with your google play store email address so that we can invite you and send you an exclusive download link via email!

Team APPICS

Everything you need to know about APPICS: https://linktr.ee/appics
Visit our Website: https://appics.com
Join us on Telegram: https://t.me/appics_official
02.03.2021 14:44
0

verified. Thank you

06.03.2021 18:25
0

verified. Thank you

06.03.2021 18:29
0

Thanks a lot!

06.03.2021 19:25
0

muy util tu publicación, gracias

02.03.2021 19:43
0

verified. Thank you

06.03.2021 18:33
0

Hello dear professor, after so much researching, reading, and reading over and over again, in order to learn and master cryptocurrency mining and how it works, I was finally able to finish my homework, I'll leave it here, I hope you can review it. Greetings and thank you very much for sharing your wisdom.

https://cdn.steemitimages.com/DQmSgDMaaL9p1kVKegFaeK9SK5RdabbwEQGycvzoWNRgkJV/PicsArt_03-02-01.52.43~3.jpg

Crypto Academy Week 4 | Homework: Cryptocurrency mining and how it works [ Task 4, by @besticofinder]

02.03.2021 20:41
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verified. Thank you

06.03.2021 18:08
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Dear professor @besticofinder, it's a privilege to learn from you and I present my entry as I've successfully solved task , now opened to you for review. Thanks for your time. The link to my task follows;

https://goldvoice.club/steem/@fredquantum/steemit-crypto-homework-task-4-cryptocurrency-mining-how-crypto-mining-works-or-or-lesson-by-besticofinder

02.03.2021 23:56
0

verified. Thank you

06.03.2021 18:33
0

Hello!
Good post, Thanks for sharing this important information

03.03.2021 02:17
0

Thank you

06.03.2021 18:33
0

verified. Thank you

06.03.2021 18:33
0

verified. Thank you

06.03.2021 18:33
0

verified. Thank you

06.03.2021 18:33
0

verified. Thank you

06.03.2021 18:34
0

verified. Thank you

06.03.2021 18:37
0

verified. Thank you

06.03.2021 18:37
0

verified. Thank you

06.03.2021 18:37
0

This post is really an interesting one, it's as if I should not end the reading.
Obviously Prof. @besticofinder is a great teacher. And I'll endeavour to participate in this one.

03.03.2021 13:27
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Thank you

06.03.2021 18:38
0

Yo p
Siempre he querido tener conocimiento de el mundo de la criptomoneda puedo hacer esos cursos sin tener nada de conocimiento es decir soy analfabeta en criptomoneda

03.03.2021 13:38
0
03.03.2021 16:29
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verified. Thank you

06.03.2021 18:38
0

verified. Thank you

06.03.2021 18:38
0

verified. Thank you

06.03.2021 18:40
0

verified. Thank you

06.03.2021 18:42
0

verified. Thank you

06.03.2021 18:42
0

Wow what a wonderful lesson..

Thanks my good friend @besticofinder

This is my homework links here

04.03.2021 05:39
0

verified. Thank you

06.03.2021 18:43
0

This is highly informative

04.03.2021 06:15
0

verified. Thank you

06.03.2021 18:51
0

verified. Thank you

06.03.2021 18:47
0

verified. Thank you

06.03.2021 18:51
0

verified. Thank you

06.03.2021 18:52
0
04.03.2021 13:57
0

verified. Thank you

06.03.2021 18:52
0

verified. Thank you

06.03.2021 18:52
0

verified. Thank you

06.03.2021 18:52
0

Good work Prof. @besticofinder
It's my first lesson in this class and I must confess I enjoyed it. Easy to understand.

Hence my homework submission

Crypto Academy Week 4 // Cryptocurrency Mining // Submitted to @besticofinder.

Thanks and keep it up.

04.03.2021 15:33
0

verified. Thank you

06.03.2021 18:52
0

Greetings teacher, this is my task number 4, I congratulate you for being attentive to us and dedicating much of your time in correcting and grading each task, thank you very much @besticofinder
@steemcurator01
@steemcurator02

https://goldvoice.club/steem/@laser145/introduction-to-cryptocurrency-mining-besticofinder-or-steemit-crypto-academy-or-lesson-4-by-laser145

04.03.2021 16:01
0

verified. Thank you

06.03.2021 18:53
0

I know you have a lot of work when you can take a look at task 3 which is a few days old since I uploaded it please.

https://goldvoice.club/steem/@laser145/crypto-academy-week-3-homework-post-for-besticofinder-explain-spot-trading-and-margin-trading-and-discuss-the-advantages-and

08.03.2021 00:05
0

verified. Thank you

06.03.2021 18:53
0

verified. Thank you

06.03.2021 18:58
0

Thank you so much for this detailed lecture. please go through my homework professor. This is my homework

04.03.2021 20:48
0

verified. Thank you

06.03.2021 19:03
0

verified. Thank you

06.03.2021 18:55
0

verified. Thank you

06.03.2021 18:55
0

verified. Thank you

06.03.2021 19:04
0

verified. Thank you

06.03.2021 18:06
0

verified. Thank you

06.03.2021 18:55
0

verified. Thank you

06.03.2021 18:55
0

verified. Thank you

06.03.2021 18:55
0

verified. Thank you

06.03.2021 18:09
0

verified. Thank you

06.03.2021 18:55
0

verified. Thank you

06.03.2021 19:05
0

verified. Thank you

07.03.2021 05:22
0
05.03.2021 18:47
0

verified. Thank you

07.03.2021 05:44
0

verified. Thank you

07.03.2021 05:52
0

verified. Thank you

07.03.2021 05:45
0

Hi professor, I've made my homework 2 days ago and it not reviewed yet.
This is my homework: https://goldvoice.club/steem/@banghim/crypto-academy-week-4-homework-post-for-besticofinder-introduction-to-cryptocurrency-minning-lesson-4

Thank you

06.03.2021 02:45
0

verified. Thank you

07.03.2021 05:45
0

Hello professor, I have made a homework 4 days ago, and you have voted for my post, but I haven't received any reviews yet, I will be happy if you check it again 😊:
https://goldvoice.club/steem/@asmaulnurul/crypto-academy-week-4-homework-post-for-besticofinder-introduction-to-cryptocurrency-mining-lesson-4

06.03.2021 04:50
0

verified. Thank you

07.03.2021 05:56
0

verified. Thank you

07.03.2021 06:06
0

Welcome sir

07.03.2021 10:11
0

verified. Thank you

07.03.2021 15:08
0

verified. Thank you

07.03.2021 15:13
0

Thanks for verifying my post.

08.03.2021 06:14
0

Hello dear @besticofinder! This is my homework

Thank you very much!!

06.03.2021 13:43
0

verified. Thank you

07.03.2021 15:15
0

🌻

07.03.2021 16:48
0
06.03.2021 15:29
0

verified. Thank you

07.03.2021 16:42
0

verified. Thank you

07.03.2021 16:42
0

verified. Thank you

07.03.2021 16:49
0

verified. Thank you

07.03.2021 16:46
0

verified. Thank you

07.03.2021 16:50
0

To get rich, you need to accept something so inconceivably a long way from your scope, with a little difficult work and commitment, is really conceivable to snatch. Enthusiasm, good thoughts

06.03.2021 18:37
0

verified. Thank you

07.03.2021 16:52
0

verified. Thank you

07.03.2021 15:31
0

verified, Thank you

07.03.2021 17:02
0

Hello Professor @besticofinder you have not made any comment on my homework post for week 4..... Here's the link

https://goldvoice.club/steem/@samuel20/crypto-academy-week-4-homework-post-for-besticofinder-or-or-05-03-2021-or-introduction-to-cryptocurrency-mining-or

Last week(week 3) my homework was not voted because you visited it late.

06.03.2021 21:13
0

verified. Thank you

07.03.2021 16:52
0

verified. Thank you

07.03.2021 16:56
0

verified. Thank you

07.03.2021 16:58
0

Kind regards professor, I leave the link to my activity for this week: https://goldvoice.club/steem/@slwzl/4-introduction-to-cryptocurrency-mining-or-steemit-crypto-academy-homework-by-slwzl

Thank you

07.03.2021 00:59
0

verified. Thank you

07.03.2021 17:00
0

Dear Professor, last time I did not get your feedback on the assignment. I would like to know the evaluation of the previous one and this one that is pending. I know the work is extensive, I will be patient.
I leave it here: https://goldvoice.club/steem/@slwzl/how-to-invest-in-cryptocurrencies-a-beginners-guide-or-steemit-crypto-academy-or-lesson-6-homework-task-6-by-slwzl

Thank you very much

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24.03.2021 13:09
0

verified. Thank you

07.03.2021 17:06
0

verified. Thank you

07.03.2021 17:07
0

Hola amigo @besticofinder, esta es mi tarea de la semana #4, (@besticofinder)Task #4: Introduction to Cryptocurrency Mining / By: @tanhunter254.. Saludos y buenos deseos.

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Compartido en twitter: tweet-link

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07.03.2021 01:41
0

verified. Thank you

07.03.2021 17:14
0

verified. Thank you

07.03.2021 17:11
0

verified. Thank you

07.03.2021 17:21
0

verified. Thank you

07.03.2021 05:40
0

Hi there Prof. @besticofinder, have a look at my Homework task for the week. Thank you and God Bless.😇🙏

07.03.2021 08:17
0

verified. Thank you

07.03.2021 17:22
0

verified. Thank you

07.03.2021 17:23
0

verified. Thank you

07.03.2021 17:25
0

verified. Thank you

07.03.2021 17:30
0
07.03.2021 10:22
0

verified. Thank you

07.03.2021 17:33
0

verified. Thank you

07.03.2021 17:32
0

verified. Thank you

07.03.2021 17:26
0

verified. Thank you

07.03.2021 17:33
0

verified. Thank you

07.03.2021 17:36
0

Gracias por su verificacion feliz dia ...

07.03.2021 18:20
0
07.03.2021 16:56
0

Hi, I wanted to do the homework task for this lesson. However I am confused that the process explained here is for the mining which is done using the hardware. However there is no mention of how cloud mining works. So does this homework task exploratory homework? Or is cloud mining process is same as the mining with owning hardware? Also does the mining on cloud differs from hardware ownership mining in terms of cost?

I'd love to finish the homework task this week if these doubts are cleared.

07.03.2021 17:01
0

Hello ,
Thanks for reaching me. Are your question regarding the week 5 task. This is the week 4 task and it's about to expire in few hours. You can try week 5 task .. you need to do your own research and create an article on cloud mining.
Thank you

07.03.2021 17:45
0

Hello professor, this is my homework, I've made it 2 days ago and it did not receive review yet
https://goldvoice.club/steem/@diegopreman/crypto-academy-week-4-homework-post-for-besticofinder-introduction-to-cryptocurrency-mining

08.03.2021 06:57
0