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How Cryptocurrency Is Mined

Everything You Need To Know About Bitcoin Mining

Everything You Need To Know About Bitcoin Mining

Where do bitcoins come from? With paper money, a government decides when to print and distribute money. Bitcoin doesn't have a central government. With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine. Bitcoin miners help keep the Bitcoin network secure by approving transactions. Mining is an important and integral part of Bitcoin that ensures fairness while keeping the Bitcoin network stable, safe and secure. Bitcoin mining is the process of adding transaction records to Bitcoin's public ledger of past transactions or blockchain. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere. Visualize and Download High-Resolution Infographic Bitcoin mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function. The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a "subsidy" of newly created coins. This both serves the purpose of disseminating new coins in a decentralized manner as we Continue reading >>

What Is Cryptocurrency Mining?

What Is Cryptocurrency Mining?

Ever wondered how bitcoins are actually made? Over the past several years, cryptocurrencies like Bitcoin have been quietly growing in popularity, with an ever-larger number of people buying and selling them. Now that Bitcoin has hit the mainstream and become a worldwide phenomenon, more people than ever are looking to get into the cryptocurrency game. However, the production of cryptocurrencies isn't anything like that of regular money. There's no central authority that issues new notes; instead, bitcoins (or litecoins, or any of the other so-called 'alt-coins') are generated through a process known as 'mining'. So what is cryptocurrency mining, and how does it work? Before getting to grips with the process of cryptocurrency mining, we need to explain what blockchain is and how that works. Blockchain is a technology that supports almost every cryptocurrency. It is a public ledger (decentralised register) of every transaction that has been carried out in that cryptocurrency. These transactions are assembled into what are called "blocks". These are the verified to ensure they are legitimate by cryptocurrency miners. This checks if the same coin hasn't been expended again before the transaction has cleared, and that the input and output expenses tally. Then the next sequential transaction block is connected to it. This is how cryptocurrencies are created and how new cryptocoins are made. As there is no central authority or central bank, there has to be a way of gathering every transaction carried out with a cryptocurrency in order to create a new block. Network nodes that carry out this task called dubbed 'miners'. Every time a slew of transactions is amassed into a block, this is appended to the blockchain. Whoever appends the block gets rewarded with some of that crypto Continue reading >>

How Bitcoin Mining Works - Coindesk

How Bitcoin Mining Works - Coindesk

In traditional fiat money systems, governments simply print more money when they need to. But in bitcoin, money isn’t printed at all – it is discovered. Computers around the world ‘mine’ for coins by competing with each other. People are sending bitcoins to each other over the bitcoin network all the time, but unless someone keeps a record of all these transactions, no-one would be able to keep track of who had paid what. The bitcoin network deals with this by collecting all of the transactions made during a set period into a list, called a block. It’s the miners’ job to confirm those transactions, and write them into a general ledger. This general ledger is a long list of blocks, known as the 'blockchain'. It can be used to explore any transaction made between any bitcoin addresses, at any point on the network. Whenever a new block of transactions is created, it is added to the blockchain, creating an increasingly lengthy list of all the transactions that ever took place on the bitcoin network. A constantly updated copy of the block is given to everyone who participates, so that they know what is going on. But a general ledger has to be trusted, and all of this is held digitally. How can we be sure that the blockchain stays intact, and is never tampered with? This is where the miners come in. When a block of transactions is created, miners put it through a process. They take the information in the block, and apply a mathematical formula to it, turning it into something else. That something else is a far shorter, seemingly random sequence of letters and numbers known as a hash. This hash is stored along with the block, at the end of the blockchain at that point in time. Hashes have some interesting properties. It’s easy to produce a hash from a collection Continue reading >>

Inside The World Of A Kenyan Cryptocurrency Miner

Inside The World Of A Kenyan Cryptocurrency Miner

Inside the world of a Kenyan cryptocurrency miner Updated 6:11 AM ET, Tue February 20, 2018 Chat with us in Facebook Messenger. Find out what's happening in the world as it unfolds. Kenyan developer mines cryptocurrencies from his front room 01:33 Leading finance experts warn Bitcoin is a "fraud" Eugene Mutai is well aware of the risks of mining virtual money. "Sometimes I ask myself: will the bubble pop?" He's right to be -- cryptocurrencies are volatile. That hasn't stopped him from operating in this shadowy and controversial corner of the global financial system. A few years ago Mutai was working odd jobs on farms in rural Kenya. Now he's a cryptocurrency miner in Nairobi. His apartment -- where he mines -- is dimly lit blue and drowned with the low drone of a self-made cryptocurrency computer rig. Mutai began researching cryptocurrencies last year. "I was curious about what was making these alternative coins drive." "Bitcoin was hard to mine by that point in time," Mutai tells CNN. There were already many Bitcoin miners. Instead, Mutai started mining Ethereum, a similar but less well known cryptocurrency. For Mutai, internet-based currencies are revolutionary. They open up a world of finance that might not have been accessible for a self-taught tech-obsessed kid from Kenya with no college degree. It's also a nefarious world of online hucksters and frauds. And that's the chance Mutai takes. Is the gamble worth it? What does it mean to mine cryptocurrencies? Photos: African innovations that could change the world Eugene Mutai in his front room with his self-built cryptocurrency mining machine. Mutai is part of a growing tech scene on the continent. Meet the innovators and inventions driving Africa's tech revolution. Photos: African innovations that could change the w Continue reading >>

Mining - Bitcoin Wiki

Mining - Bitcoin Wiki

Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions (and a " mining rig " is a colloquial metaphor for a single computer system that performs the necessary computations for "mining").This ledger of past transactions is called the block chain as it is a chain of blocks .The block chain serves to confirm transactions to the rest of the network as having taken place.Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere. Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function. The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus.Mining is also the mechanism used to introduce Bitcoins into the system:Miners are paid any transaction fees as well as a "subsidy" of newly created coins.This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system. Bitcoin mining is so called because it resembles the mining of other commodities:it requires exertion and it slowly makes new currency available at a rate that resembles the rate at which commodities like gold are mined from the ground. Mining a block is difficult because the SHA-256 hash of a block's header must be lower than or equal to the target in order for the block to be accepted by the network. This problem can be simplified for explanation purposes: The hash of a bl Continue reading >>

Cryptocurrency-mining Criminals That Netted $3 Million Gear Up For More

Cryptocurrency-mining Criminals That Netted $3 Million Gear Up For More

Sign up or login to join the discussions! Cryptocurrency-mining criminals that netted $3 million gear up for more Attackers who mined 10,829 Monero coins over 18 months target a new server platform. Researchers have uncovered what they said is one of the biggest malicious currency mining operations ever, with more than $3 million worth of digital coin. Now, the operators are gearing up to make more. The unknown criminals generated the windfall over the past 18 months. The campaign has mainly exploited critical vulnerabilities on Windows computers and then, once gaining control over them, installing a modified version of XMRig, an open source application that mines the digital coin known as Monero. While the group has used a variety of mining services, it has continued to dump the proceeds into a single wallet. As of last week, the wallet had received payouts of almost 10,829 Monero, which, at current valuations, are worth more than $3.4 million. "The perpetrator, allegedly of Chinese origin, has been running the XMRig miner on many versions of Windows and has already secured him over $3 million worth of Monero cryptocurrency," researchers at security firm Check Point wrote in a blog post . "As if that wasn't enough though, he has now upped his game by targeting the powerful Jenkins CI server, giving him the capacity to generate even more coins." The Jenkins Continuous Integration server is open source software written in Java for deploying and automating all kinds of tasks. With more than 1 million users, it's one of the most widely used open source automation servers. In January, independent researcher Mikail Tun estimated that as many as 20 percent of Jenkins servers are misconfigured in ways that make serious hacks possible. The compromises cause slower performance Continue reading >>

A Beginner's Guide To Cryptocoin Mining

A Beginner's Guide To Cryptocoin Mining

Is it worth your time to mine for cryptocoins? Cryptocurrency mining takes patience and time. Koron/Moment/Getty Images Mining cryptocoins  is an arms race that rewards early adopters. You might have heard of Bitcoin , the first decentralized cryptocurrency that was released in early 2009. Similar digital currencies have crept into the worldwide market since then, including a spin-off from Bitcoin called Bitcoin Cash . You can get in on the cryptocurrency rush if you take the time to learn the basics properly. If you had started mining Bitcoins back in 2009, you could have earned thousands of dollars by now. At the same time, there are plenty of  ways you could have lost money , too.  Bitcoins  are not a good choice for beginning miners who work on a small scale. The current up-front investment and maintenance costs, not to mention the sheer mathematical difficulty of the process, just doesn't make it profitable for consumer-level hardware. Now, Bitcoin mining is reserved for large-scale operations only.   Litecoins , Dogecoins, and Feathercoins , on the other hand, are three Scrypt-based cryptocurrencies that are the best cost-benefit for beginners. At the current value of Litecoin, a person might earn anywhere from 50 cents to 10 dollars per day using consumer level mining hardware. Dogecoins and Feathercoins would yield slightly less profit with the same mining hardware but are becoming more popular daily. Peercoins , too, can also be a reasonably decent return on your investment of time and energy. As more people join the cryptocoin rush, your choice could get more difficult to mine because more expensive hardware will be required to to discover coins. You will be forced to either invest heavily if you want to stay mining that coin, or you will want to Continue reading >>

What You Need To Know About Cryptocurrency Mining

What You Need To Know About Cryptocurrency Mining

What you need to know about cryptocurrency mining If you want to know more about cryptocurrencies, where they came from, and why they're impacting graphics card prices, read How Bitcoin and cryptocurrencies are hurting gamers . Cryptocurrency news has been hot of late, thanks in no small part to the skyrocketing prices of Bitcoin and Ethereum , the two largest cryptocurrencies right now. Litecoin and other cryptocurrencies are also up in value, and given the prices on graphics cards that are supposed to be useful for gaming, some of you will inevitably wonder: should I get into the mining business? That's a big, open-ended question, and the answer depends on many factors. I'm not going to try and cover every aspect (because Google is your friend), but let's quickly go over the basics of what you would need to get started, and I'll include some rough estimates of how much money you might make when all is said and done. The core of mining is the idea of block rewards. For most coins, these are given to the person/group that finds a valid solution to the cryptographic hashing algorithm. This solution is a mathematical calculation that uses the results of previous block solutions, so there's no way to pre-calculate answers for a future block without knowing the solution to the previous block. This history of block solutions and transactions constitutes the blockchain, a sort of public ledger. What is a block, though? A single block contains cryptographic signatures for the block and the transactions within the block. The transactions are collected from the network, typically with a small fee attached, which also becomes part of the block reward. There's a difficulty value attached to the solution for a block as well, which can scale up/down over time, the goal being to kee Continue reading >>

How Does Cryptocurrency Work?

How Does Cryptocurrency Work?

Cryptocurrency Basics How Does Cryptocurrency Work? Do you like our content? Or, do you want to test out a new wallet? Feel free to send some coins to one of our wallets public addresses. All donated funds will go toward improving the site. The content of this website is provided for informational purposes only and cant be used as investment advice, legal advice, tax advice, medical advice, advice on operating heavy machinery, etc. Our site is not officially associated with any brand or government entity. Any mention of a brand or other trademarked entity is for the purposes of education, entertainment, or parody. Neither CryptocurrencyFacts.com nor its parent companies accept responsibility for any loss, damage, or inconvenience caused as a result of reliance on information published on, or linked to, from CryptocurrencyFacts.com. In other words, this is a website on the internet offering free information about cryptocurrency, this is not your accountant, lawyer, or fiduciary offering you professional tax, legal, or investment advice. See our about page for more disclaimers and information. Cryptocurrency is an encrypted decentralized digital currency transferred between peers and confirmed in a public ledger via a process known as mining. Below, we take a simplified look at how cryptocurrencies like bitcoin work. First, lets review the basics and essentialsof cryptocurrency, and then we will do an overview of theother properties that have made cryptocurrency what it is today. TIP: If the page below feels overwhelming, check out: how does cryptocurrency work (for beginners) . Meanwhile, if you are mainly interested in trading, investing in, or using cryptocurrency, check out how to trade cryptocurrency (for beginners) . This page provides an overview of the mechanics Continue reading >>

The Culture Of Crypto Mining Is Changing: Heres How

The Culture Of Crypto Mining Is Changing: Heres How

The culture of crypto mining is changing: heres how Cryptocurrencies have become a major topic of interest in the United States, in part due to the extreme volatility of the flagship cryptocurrency, Bitcoin . Bitcoin rose from a modest value (under $1,000) to more than $15,000 in the span of a year , and now hovers between $6,000 and $12,000, with wild fluctuations throughout the days and weeks. Its a potentially lucrative investment, but also a risky oneespecially considering how new the concept of cryptocurrencies really is. In addition to buying and selling cryptocurrencies, consumers are more actively involving themselves in crypto mining, the process of creating new digital currency. But the culture surrounding crypto mining is changing, and it may never be the same again. Before you can understand how crypto mining is changing, you have to understand how it started, and what it is today . To hold its value, cryptocurrency needs to exist in a finite amount, and just like printing money, it needs an initial distribution. The system also relies on a network of peers (i.e., hundreds to thousands of computers) to audit each transaction on the network; in other words, the community of computers has to agree that a transaction is legitimate before its finalized as a block and added to the blockchain. Crypto mining exists as a solution to both problems. Essentially, a network of computers works to validate a hypothetical transaction by solving a 64-digit hexadecimal hash. If the transaction is validated, the block is legitimized, and the first computer on the network that solved it gets a fixed reward of cryptocurrency. This problem-solving guesswork takes a tremendous amount of computing power, which requires advanced graphics cards, several man-hours of setup, and of c Continue reading >>

Help Me, Laptop: Can I Mine Cryptocurrency?

Help Me, Laptop: Can I Mine Cryptocurrency?

Help Me, Laptop: Can I Mine Cryptocurrency? I'm not an economist, nor am I a financial advisor, but you would have to have been living under a rock not to have heard of cryptocurrencies by now. How couldn't you? In the last couple of weeks, the topic has been everywhere, after Bitcoin hit a record high in value. Now, reader ddermedgoglou is asking Laptop Mag, can you mine cryptocurrency on a laptop? "I would be keen to learn a little more about crypto mining and was thinking of giving it a crack on my laptop," they wrote. "However, I am a bit of a noob when it comes to mining specs and wasn't really sure if it is worth [pursuing]." Ddermedgoglou is using an MSI GP62M 7RDX Leopard, a fairly recent machine with a 7th Gen Intel Core i7 CPU, a GTX 1050 GPU with either 2GB or 4GB of VRAM (depending on how it was configured), and up to 32GB of RAM. In theory, it's the GPU that matters most for cryptocurrency mining. But depending on what our reader is planning on mining, even the GPU might not matter. Bitcoin, they already know, is out. Even the most high-end GPUs aren't powerful enough to mine Bitcoin anymore, and most users need dedicated hardware called application-specific integrated circuit chips, or ASICs, that are designed exclusively for mining. So that leaves smaller coins like Ethereum, Litecoin, Monero or a bunch of cryptocurrencies so small that you'd have to do research just to find them. You can still use a high-end GPU for mining those currencies, though ddermedgoglou's GTX 1050 won't cut it. Crypto miners are buying up high-end cards like the GTX 1060, 1070 and 1080 in bulk, but the 1050 just isn't as popular, because it's far less powerful (on the desktop side, it's one of the few cards whose prices aren't skyrocketing). That doesn't mean mining impossible, Continue reading >>

How Cryptocurrency Mining Is Hurting Astronomers

How Cryptocurrency Mining Is Hurting Astronomers

How cryptocurrency mining is hurting astronomers Aaron Parsons is on a quest to discover the first stars that formed in our Universe around 13 billion years ago. But one thing is getting in the way of his primordial cosmic quest: cryptocurrency. The mining craze of cryptocurrencies like Ethereum is draining the supplies of graphics cards on the market. And that’s spiking the prices of so-called graphics processing units, or GPUs, super powerful chips that can process huge amounts of data. Without GPUs, astronomers like Parsons can’t do their job. Parsons, at UC Berkeley, works with radio telescopes. These are made of hundreds of antennas that pick up radio emissions permeating the cosmos. All that data needs to be processed in real time by a supercomputer to create a map of the sky that can help Parsons spot the earliest stars, and ultimately understand how our Universe transitioned from hot plasma into a cosmos made of galaxies and planets. Parsons is currently trying to upgrade his radio telescope, called the Hydrogen Epoch of Reionization Array (HERA), to a total of 350 antennas in South Africa. But this week, he found that the GPUs he needs to process data from all those antennas doubled in price — from $500 to $1,000 apiece. That will cost an extra $32,000 that won’t go to paying extra graduate student researchers. “I kind of rolled my eyes a little bit,” Parsons tells The Verge. “I usually think of cryptocurrency as some kind of peripheral thing, and I was surprised and a bit annoyed to discover that it’s impacting the bottom line of our telescope.” Cryptocurrency miners need the GPUs to solve the ever-more-complicated mathematical problems to create new cryptocurrencies. It’s a system that makes the network safe, but it has also spiked energy Continue reading >>

Students Are Mining Cryptocurrency From Their Dorm Rooms On College Campuses Quartz

Students Are Mining Cryptocurrency From Their Dorm Rooms On College Campuses Quartz

Mark was a sophomore at MIT in Cambridge, Massachusetts, when he began mining cryptocurrencies more or less by accident. In November 2016, he stumbled on NiceHash, an online marketplace for individuals to mine cryptocurrency for willing buyers. His desktop computer, boosted with a graphics card, was enough to get started. Thinking he might make some money, Mark, who asked not to use his last name, downloaded the platform’s mining software and began mining for random buyers in exchange for payments in bitcoin. Within a few weeks, he had earned back the $120 cost of his graphics card, as well as enough to buy another for $200. From using NiceHash, he switched to mining ether, then the most popular bitcoin alternative. To increase his computational power, he scrounged up several unwanted desktop computers from a professor who “seemed to think that they were awful and totally trash.” When equipped with the right graphics cards, the “trash” computers worked fine. Each time Mark mined enough ether to cover the cost, he bought a new graphics card, trading leftover currency into bitcoin for safekeeping. By March 2017, he was running seven computers, mining ether around the clock from his dorm room. By September his profits totaled one bitcoin—worth roughly $4,500 at the time. Now, four months later, after bitcoin’s wild run and the diversification of his cryptocoin portfolio, Mark estimates he has $20,000 in digital cash. “It just kind of blew up,” he says. Four of Mark’s desktop computer miners. (Mark) Exploiting a crucial competitive advantage and motivated by profit and a desire to learn the technology, students around the world are launching cryptocurrency mining operations right from their dorm rooms. In a typical mining operation, electricity consumpt Continue reading >>

Cryptocurrencies Are Creating Billion-dollar Industries. The Next? Mining As A Service

Cryptocurrencies Are Creating Billion-dollar Industries. The Next? Mining As A Service

Cryptocurrencies Are Creating Billion-Dollar Industries. The Next? Mining As A Service Nicolas Cole is an author, Top Writer on Quora, and the founder and Editor-In-Chief of Digital Press. His work has acquired over 30 million views online, and has been published in Time, Forbes, Fortune, Business Insider, CNBC, and more. He is best known for writing about creativity, entrepreneurship, and personal growth. In the same way that very few people understand how gold is mined from the earth (and subsequently impacts our economical foundation) , even less people understand how a Bitcoin is created --or more specifically, "mined." Mining is a term only the most astute of cryptocurrency loyalists use. New and eager cryptocurrency advocates have heard the word, but don't fully get what it "means." And those who still see Bitcoin as a sort of black magic hear "mining" and think picks, shovels, and dark tunnels. Without "mining," cryptocurrencies would not exist. For those that don't know, the definition of Bitcoin mining is "the process by which transactions are verified and added to the public ledger, known as the blockchain, and also the means through which new Bitcoin are released." Think of mining as what creates those invisible blocks of data people are now purchasing for tens of thousands of dollars, speculating that its limited supply will increase their value over time. The same process happens for Ethereum, and dozens of other cryptocurrencies. But according to Dan Reitzik, CEO of DMG Blockchain Solutions , the process of mining is far more complicated than people think. "Anyone can buy a Bitcoin," said Reitzik. "Not everyone can start up their own mining rig." DMG, a diversified blockchain company which recently went public under the symbol DMGI ~ TSX on the Toronto st Continue reading >>

How To Mine Cryptocurrency And Make Bitcoin Without Knowing Anything About It - Business Insider

How To Mine Cryptocurrency And Make Bitcoin Without Knowing Anything About It - Business Insider

A vertical stack of three evenly spaced horizontal lines. * Copyright © 2018 Business Insider Inc. All rights reserved. Registration on or use of this site constitutes acceptance of our FILE PHOTO - Representation of the Bitcoin virtual currency standing on the PC motherboard is seen in this illustration picture Cryptocurrency mining isn't for everyone, and it might seem daunting even if you are interested. You might think you need an extreme know-how of computers to do any kind of crypto mining, that it couldn't possibly be done by the average person. You just need computer parts that are powerful enough to make mining profitable, and a handy piece of software called Nicehash. You literally press a green button on Nicehash to start mining. I've been experimenting with crypto mining on Nicehash myself, and it's been a fun little project. I'm not raking in a huge amount of cash, as my mining rig is small enough that it's more like looking for change on a sidewalk. Bigger mining organizations have warehouses full of powerful computer parts that can generate a ton of cryptocurrencies. And at the end of the day, I'd only really suggest it if you already have a gaming PC with an appropriately powerful graphics card - the key component for mining. And you need to make sure your electricity costs aren't too high, as mining can suck up a ton of energy. Before anything, you have to make sure you have the right gear. Whether or not you know anything about mining, you need to have some powerful hardware. You could mine with a basic computer that only has a processor, like an Intel or AMD processor. But graphics cards that PC gamers use to power their games are much better suited for the job. For the best results, you'll need desktop PC and Nvidia or AMD graphics cards. Laptops, Continue reading >>

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