CryptoCoinsInfoClub.com

What Is A Cryptocurrency Mining?

Cryptocurrency - Wikipedia

Cryptocurrency - Wikipedia

HitBTC cryptocurrency exchange terminal window A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions, to control the creation of additional units, and to verify the transfer of assets. [1] [2] [3] Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies . Bitcoin , created in 2009, was the first decentralized cryptocurrency. [4] Since then, numerous cryptocurrencies have been created. [5] These are frequently called altcoins, as a blend of bitcoin alternative. [6] [7] [8] Bitcoin and its derivatives use decentralized control [9] as opposed to centralized electronic money / central banking systems. [10] The decentralized control is related to the use of bitcoin's blockchain transaction database in the role of a distributed ledger . [11] Decentralized cryptocurrency is produced by the entire cryptocurrency system collectively, at a rate which is defined when the system is created and which is publicly known. In centralized banking and economic systems such as the Federal Reserve System , corporate boards or governments control the supply of currency by printing units of fiat money or demanding additions to digital banking ledgers. In case of decentralized cryptocurrency, companies or governments cannot produce new units, and have not so far provided backing for other firms, banks or corporate entities which hold asset value measured in it. The underlying technical system upon which decentralized cryptocurrencies are based was created by the group or individual known as Satoshi Nakamoto . [12] As of September 2017 [update] , over a thousand cryptocurrency specifications exist; most are simil Continue reading >>

12 Answers - What Is Cryptocurrency Mining? - Quora

12 Answers - What Is Cryptocurrency Mining? - Quora

Originally Answered: What does mining in cryptocurrency mean? Mining cryptocurrency is like mining gold or silver at a mountain. When you start digging into a mountain it's relatively easy but over time you will need more advanced equipment as the process gets dangerous and difficult. Mining refers to processing cryptocurrency transactions. Miners get rewarded whenever they process a transaction and solve for a new block. The mining process involves solving mathematical problems. These problems get difficult with time. As the difficulty increases the miner would need fast and reliable technology. To start mining you need hardware (ASIC for Bitcoin and GPU for other cryptocurrencies) and electricity. Setting up a mining rig is expensive and requires cheap electricity so instead people join mining clouds. A YouTube Cryptocurrency News Host, Analyst and Educator #1 Cryptocurrency FaceBook Group: Log into Facebook | Facebook In short, cryptocurrency mining is solving blockchains that contain info on worldwide transactions. Those transactions are stored on all computers that are registered as miners and it is used to prevent fraud. The purpose of this network is to keep track of every transaction on the planet. If you make a payment with Bitcoin every peer in the network will know that you made a purchase and have that record stored in the database. It takes some time for the network to confirm your transaction, but once it gets confirmed there is nothing that can reverse the process. You could say that it is the most secure payment system in the world right now. The transaction becomes a part of a blockchain and that is how a bitcoin is forged. The job of miners in a cryptocurrency-network is to confirm transactions by solving the blockchains. The more transactions made, t 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 >>

Samsungs Now Making Chips Designed For Cryptocurrency Mining

Samsungs Now Making Chips Designed For Cryptocurrency Mining

Samsungs now making chips designed for cryptocurrency mining Photo by Seung-il Ryu/NurPhoto via Getty Images Samsungs semiconductor business is booming, with the company recently overtaking Intel as the worlds biggest chipmaker . But the South Korean firm is not resting on its laurels, and is currently looking to expand into the buzziest contemporary market for processors: cryptocurrency mining. As reported by TechCrunch , Samsung has confirmed its in the process of making hardware specially designed for mining cryptocurrencies like Bitcoin and Ethereum. A spokesperson for the firm told TechCrunch: Samsungs foundry business is currently engaged in the manufacturing of cryptocurrency mining chips. However we are unable to disclose further details regarding our customers. These chips are known as ASICs, or application-specific integrated circuits. ASICs are processors that have been specially designed for a single computational task, as opposed to the multi-purpose processors we use in computers and phones. As the valuation of cryptocurrencies has shot up, so has the demand for these sorts of chips. In the case of bitcoin, the currency is created by solving mathematical problems, with these calculations also maintaining the integrity of bitcoin transactions. As more bitcoins are mined, these math problems become increasingly difficult. This has led to miners moving on from using normal integrated graphics cards, to GPUs designed for gaming , and now to specially built ASICs. Its not clear exactly what sort of products Samsung will be making, but according to reports from Korean media , itll be working with Taiwanese firm TSMC. The company currently supplies chips for a number of firms set up solely to mine cryptocurrencies, including the China-based Bitmain. Meeting the Continue reading >>

Bitcoin Mining Definition | Investopedia

Bitcoin Mining Definition | Investopedia

Bitcoin mining is the process by which transactions are verified and added to the public ledger, known as the block chain, and also the means through which new bitcoin are released. Anyone with access to the internet and suitable hardware can participate in mining. The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle. The participant who first solves the puzzle gets to place the next block on the block chain and claim the rewards. The rewards, whichincentivize mining, are both the transaction fees associated with the transactions compiled in the block as well as newly released bitcoin. (Related: How Does Bitcoin Mining Work? ) The amount of new bitcoin released with each mined block is called the block reward. The block reward is halved every 210,000 blocks, or roughly every 4 years. The block reward started at 50 in 2009, is now 25 in 2014, and will continue to decrease. This diminishing block reward will result in a total release of bitcoin that approaches 21 million. How hard are the puzzles involved in mining? Well, that depends on how much effort is being put into mining across the network. The difficulty of the mining can be adjusted, and is adjusted by the protocol every 2016 blocks, or roughly every 2 weeks. The difficulty adjusts itself with the aim of keeping the rate of block discovery constant. Thus if more computational power is employed in mining, then the difficulty will adjust upwards to make mining harder. And if computational power is taken off of the network, the opposite happens. The difficulty adjusts downward to make mining easier. In the earliest days of Bitcoin, mining was done with CPUs from normal desktop computers. Graphics cards, or graphics processing units (GPUs), are 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 >>

How To Mine Bitcoin: Here's Everything You Need To Know | Digital Trends

How To Mine Bitcoin: Here's Everything You Need To Know | Digital Trends

Posted on March 10, 2018 - 9:00AM 3.10.18 - 9:00AM When Bitcoin was first introduced in 2009, mining the worlds first and premier cryptocurrency needed little more than a home PC and not even a fast one at that. Today the barrier for entry is far higher if you want to make any kind of profit doing it. That doesnt mean its impossible, but its not the homebrew industry it once was. Still, if you want to know how to mine Bitcoin, there are a few steps you can take. One involves much more risk and monetary investment than the other, but the potential rewards are greater. So just as when it comes to buying Bitcoin or altcoins , you need to be aware that nothing in the world of cryptocurrencies is guaranteed. Any investment could be lost, so make sure you do your reading before pulling out your credit card. Before we discuss how to mine Bitcoins yourself, its important to note that although there is uncertainty in everything cryptocurrency related, mining is arguably the most volatile. Hardware price fluctuations, changes in Bitcoin difficulty and even the lack of a guarantee of a payout at the end of all your hard work, make it a riskier investment than even buying Bitcoins directly. Nobody can say whether Bitcoins will be worth more tomorrow than they are today, nor can they give you any concrete answer as to whether youll receive a return on your investment, but buying Bitcoin directly at least gives you something for your money immediately. Its certainly worth considering before you go down the mining route. Cloud mining is the practice of renting mining hardware (or a portion of their hashing power) and having someone else do the mining for you. You are typically paid for your investment with Bitcoin. Sometimes even if the hardware isnt used for mining Bitcoin. Although Continue reading >>

How Does Bitcoin Mining Work?

How Does Bitcoin Mining Work?

By Euny Hong | Updated October 17, 2017 — 3:51 PM EDT Cryptocurrency mining is painstaking, expensive, and only sporadically rewarding. Nonetheless, mining has a magnetic draw for many investors interested in cryptocurrency. This may be because entrepreneurial types see mining as pennies from heaven, like California gold prospectors in 1848. And if you are technologically inclined, why not do it? Well, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin. (Related: How Bitcoin Works  and our helpful infographic,  What is Bitcoin? ) By mining, you can earn cryptocurrency without having to put down money for it. That said, you certainly don't have to be a miner to own crypto.  You can also  buy crypto using fiat currency (USD, EUR, JPY, etc); you can trade it on an exchange like Bitstamp using other crypto (example: Using Ethereum or NEO to buy Bitcoin); you even can earn it by playing video games or by publishing blogposts on platforms that pay its users in crypto. An example of the latter is  Steemit , which is kind of like Medium except that users can reward bloggers by paying them in a proprietary cryptocurrency called Steem.  Steem can then be traded elsewhere for Bitcoin.  In addition to lining the pockets of miners, mining serves a second and vital purpose: It is the only way to release new cryptocurrency into circulation. In other words, miners are basically "minting" currency. For example, as of the time of writing this piece, there were about 16 million Bitcoin in circulation. Aside from the coins minted via the genesis block (the very first block created by Bitcoin founder Satoshi Nakamoto himself), every single one of those Bitcoin came into being because of min Continue reading >>

Cyber Attackers Are Cashing In On Cryptocurrency Mining - But Here's Why They're Avoiding Bitcoin

Cyber Attackers Are Cashing In On Cryptocurrency Mining - But Here's Why They're Avoiding Bitcoin

Cyber attackers are cashing in on cryptocurrency mining - but here's why they're avoiding bitcoin Cryptocurrency mining malware has emerged as a key method of criminal hackers making money - so why aren't they targeting the most valuable blockchain-based currency of them all? A quick glance at some of the key trends in cyber security during the first months of 2018 and its clear that cryptocurrency mining has become a new target for cyber criminals. While ransomware remains a popular method for some criminals to generate income , the cyptocurrency craze has caught the imagination of cyber attackers, with regular reports of cryptocurrency mining malware regularly surfacing . Everything from smartphones, to PCs and servers have been infiltrated by hackers, who exploit their processing power to secretly mine cryptocurrency; some schemes have been known to generate millions . Attackers use mining to generate a range of blockchain-based currencies. However, despite bitcoin's high profile presence as the most common form of cryptocurrency - and one which remains popular for underground activities - criminals aren't attempting to maliciously excavate it. "Bitcoin is the arguably the most popular crypto currency that exists, but still we have not seen a single attack trying to infect servers with Bitcoin mining malware," says a newly released report by researchers at Imperva. Bitcoin remains the most high value cryptocurrency - at the time of writing, one bitcoin is equivalent to around $11500 - so you might think it would be the best vehicle for attackers making easy money off mining. So why aren't they attempting to do so? One reason is because bitcoin mining requires specialised hardware featuring an custom-built application-specific integrated circuit (ASIC). As a result, Continue reading >>

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 >>

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 >>

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 Explained | Fortune

Cryptocurrency Mining Explained | Fortune

© 2017 Time Inc. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy ( Your California Privacy Rights ). Fortune may receive compensation for some links to products and services on this website. Offers may be subject to change without notice. Quotes delayed at least 15 minutes. Market data provided by Interactive Data . ETF and Mutual Fund data provided by Morningstar , Inc. Dow Jones Terms & Conditions: . S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions . Powered and implemented by Interactive Data Managed Solutions . Continue reading >>

Cryptocurrency Mining: What It Is, How It Works And Who's Making Money Off It

Cryptocurrency Mining: What It Is, How It Works And Who's Making Money Off It

Cryptocurrency Mining: What It Is, How It Works And Who's Making Money Off It Shanthi Rexaline , Benzinga Staff Writer   NVIDIA Corporation (NASDAQ: NVDA )'s second-quarter earnings released earlier this month, though exceeding expectations, elicited cautionary reaction from the investor as well as analyst communities. Traders bid down the stock by over 5 percent on Aug. 11. One of the reasons cited for the negative reaction was cryptocurrency contributing to much of the outperformance. Start mining crypto currencies with HashFlare . Analysts Blayne Curtis and Christopher Hemmelgarn of Barclays believes revenue stream from cryptocurrency is fickle. Therefore, the analysts were not in favor of assigning a multiple to it, as it has the potential to become an eventual headwind. Rival Advanced Micro Devices, Inc. (NASDAQ: AMD ) also had a similar tale to tell. The company indicated that cryptocurrency demand remains strong, while also suggesting that the demand might not last forever. Cryptocurrency, as the name suggests, is a form of digital money designed to be secure and anonymous in most cases. It uses a technique called cryptography — a process used to convert legible information into an almost uncrackable code, to help track purchases and transfers. Giving a simple definition, Blockgeeks says it is just limited entries in a database no one can change without fulfilling specific conditions. Cryptography is a technique that uses elements of mathematical theory and computer science and was evolved during the World War II to securely transfer data and information. Currently, it is used to secure communications, information and money online. Cryptocurrencies allow users to make secure payments, without having to go through banks. Some cryptocurrencies include bitcoin, Continue reading >>

More in ethereum