What does Mining mean?
Mining is the process by which transactions of a cryptographic currency are confirmed. In addition to this, new coins are created during the process.
In computation-intensive processes, cryptographic tasks are mainly solved. Creation of new blocks is connected with a certain amount of effort to prevent subsequent modification of the blockchain.
The difficulty level of the cryptographic tasks is always adapted to the computing power of the entire network of the cryptographic currency. This ensures that the total time spent on the creation of a new block remains as stable as possible.
How does it work in reallity?
While mining used to be done with conventional processors, computing power is now provided mainly by specialised hardware. This hardware is optimised to achieve the highest possible performance (hash rate) with the lowest possible power consumption.
This is so that mining is carried out as profitably as possible. For example, there are companies that now only offer so-called “ASIC” miners. ASIC miners use state-of-the-art chip technology to offer high-performance rates in relation to the energy consumed.
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.