What is Meant by the Term “Physical Mining”?
Physical Mining – In order to enter into the world of the cryptocurrencies in a cost-effective way, many users rely on mining, which requires the presence of hardware and software so that transactions can be verified and stored in blocks by hashes.
This means that the hash verifies the transaction through the network and allows the transaction to be processed. This process is crucial when tokens are to be transferred from one user to another.
A more recent approach to mining is physical mining, in which the mining provider acts as a dealer and provider at the same time. This means that a third party, in the form of a trading centre, is circumvented. In physical mining, a company provides the entire mining hardware.
This is especially important to ensure that a maximum yield can be achieved when mining tokens. In addition, the provider also offers all the software needed for the mining. If the provider also rewards the miner for using the hardware and software, then it is referred to as physical mining. Basically, the entire mining process is offered as a service.
What are the Advantages?
Since physical mining bypasses the middlemen, it also eliminates commission, which otherwise has to be paid to the third party. This is an important difference to cloud mining, whereby a third party is actively involved.
Another advantage is the convenience factor, which is ensured by this approach. For a fee, a comprehensive service is offered. However, this can be understood as a kind of risk investment.
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.