Cryptocurrency Mining – What Is It?
Let's start with a simple definition, and then delve into the very essence and principle of the technology with live examples.
Mining is the process of mining a cryptocurrency in the form of a cryptocurrency reward for those who provide their computing power for the functioning of the network of this cryptocurrency.
Miners use expensive hardware to verify transactions and prevent online fraud. They check new transactions and write them to the global ledger (blockchain).
In other words, mining is the process of solving blocks in blockchain technology. For solving blocks, the miner (a person engaged in mining) receives a reward in the cryptocurrency whose blocks he solved.
Mining is a mechanism that allows the cryptocurrency blockchain to be decentralized. To solve the blocks, a lot of equipment power is needed, which grows with each solved block. Therefore, it is almost impossible to mine (extract) cryptocurrency alone. Because of this, miners began to unite in pools of thousands of participants. On the pool, the capacities of each miner's equipment are combined, and the received reward is divided in proportion to the utilized capacities.
People who are engaged in mining invest in equipment (video cards, ASICs, etc.), then they choose which cryptocurrency they will mine.
Of course, the lion's share of miners participate in this for the sake of obtaining passive income from mining cryptocurrency, because in fact it is not so difficult to start mining, and it does not require much time and effort, and you can get income even every day (depending on the power – investments) ...
How to start mining?
Go to https://woolypooly.com/en/calc/what-to-mine-gpu mining calculator and choose the most profitable coin for you.
Go to https://woolypooly.com/en/ mining pool, click on Connection button and copy the stratum URL and port.