What is cryptomining?

How does cryptomining work?

Cryptomining is the process by which the miners use the computing power (hash) to process transactions and obtain rewards by doing that (in this situation, cryptocurrencies).

Cryptomining requires a specific software to solve the mathematical problems and the verification of the legal transaction that confirms that a block is really a block. These blocks are constantly added to the blockchain approximately each 10 minutes. Once the software solves the transaction, the miner receives a certain quantity of cryptocurrency.

The faster the miner hardware can process these mathematical problems, the more probable that it verifies the transactions and receives its rewards.

What is needed for cryptomining?

To extract a certain cryptocurrency, you need a suitable hardware. Depending on the coin, its possible that an ASIC miner is need, or a computer with a high-performance graphic card. In other situations, a CPU (processor) or a hard drive might also be needed.

What types of cryptomining exist?

Proof of Work (PoW).

Is the most used system to mine coins such as Bitcoin, Ethereum, Litecoin or Monero. This type of minery requires high performance machines that are able to solve a series of hash riddles. Until the riddles are solved, there will not be an option to add a new block to join the Blockchain.

Proof of Stake (PoS).

This model is based on the acquisition power of the miner. The more cryptocurrencies the miner has, the more he will mine.

Proof of Space and Time (PoST).

This model uses storing hardware. Miners download arbitrary data called “plots”, to any hard drive of more than 108 GB of space.

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