What does the term Dynamic Mining mean?
Dynamic mining is a special type of mining. Dynamic miners don’t just focus on the mining of special cryptocurrency tokens. Instead, they use a special software.
This examines the market based on the current most attractive cryptocurrencies as well as the most profitable tokens. When the dynamic mining is compared to other mining approaches, there are many parallels to Multipool mining.
How does dynamic mining work with software?
Dynamic mining uses software to automatically analyze the entire crypto market and identify particularly profitable tokens. After determining the currently most profitable token, the software simultaneously identifies appropriate multi-pools so that mining can be performed on them.
The software, therefore, provides all the available computing power in the selected mining pool. The prerequisite for this, however, is that the blockchain can also use the computing power for mining. The blockchain should be regarded as the backbone of the corresponding cryptocurrency.
The proof-of-work and proof-of-stake algorithm allow two different mining approaches to be followed. In principle, the proof-of-work algorithm requires active confirmation of transactions and more computing capacity.
The blockchain, in this case, represents a type of accounting system in which all transactions are listed in chronological order. In addition, the blockchain consists of different blocks, which respectively confirm the transactions of the previous block.
Using this type of mining can achieve a maximum yield in theory. Classic mining requires personal preferences flow into individual profitability, but this assumption does not apply to dynamic mining.
Instead, a rational procedure is pursued, which can be further improved by optimizing the hardware.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.