What is Crypto Mining?

What is Crypto Mining?

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What is Crypto Mining?

Recently, in a previous article, we wrote about the Proof-of-Work (PoW) consensus mechanism, which uses Miners to verify and add new transactions to the blockchain.

Let’s use Bitcoin as our PoW example for this thread.

Mining Crypto explained in the simplest way is the process of Miners using GPU power to create new coins, e.g. Bitcoin miners will mine new $BTCs, validate and add them to the distributed ledger.

How To Mine Crypto

There are various ways of Mining Crypto. Here are a few options:

• Individual Miners are users with their own upscale computer/GPU that is sufficient for #Crypto mining.
• Cloud Mining is a service that allows users to rent their GPU power, usually for a monthly fee.
• Mining Pools are large entities that work together to own a large portion of mining hardware. Anyone can add their GPU to a Mining Pool.

Crypto Mining used to require less GPU power, but nowadays it requires both high-end hardware and consumes a lot of energy.

Conclusion

Some countries are cheaper to Mine crypto and it can be profitable, however for most, it is too expensive, not environmentally efficient and that is why the Proof-of-Stake (PoS) consensus mechanism has become a better alternative for most.

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