Cryptocurrency does not appear out of thin air. Miners provide the release of new coins. Cryptocurrency, a token, is built on a specific blockchain platform. Blockchain is a chain of blocks, each of which must have a name (a hash code consisting of many numbers and letters), and which provides anonymity. The task of the miner is to find a name for the block so that it is added to the chain. These names are formulated in the process of automatic computational work.
Miners fight for every hash found. The search for a solution is usually lengthy. Confirmation of the correctness of the found hash is fast (Proof of Work methods – this is how Bitcoin is mined) and is necessarily done by the network after the miner has proposed a solution. The number of letters and numbers in a hash depends on the hashing algorithm. Typically, this is 64 characters (SHA-2) but can be 40 or 8 (SHA-1, CRC-32). Here it is important to be either the first to propose a solution or the one whose solution is closest to the answer to a numerical problem. The miner receives a reward for each found block in the form of coins or a commission.
How is the most common, 64-digit code (hash) found?
Let’s say the network is given the number 18. If miner A comes up with the number 20, he will lose because 20 is more than the 18 we need. If miner B comes up with 15 and miner C with 13, then they both theoretically come up with viable answers, since 20 and 13 are less than 20. Miner B is not awarded, although his answer was closer to the target value of 18. But remember that there are millions of potential miners on the network who must find not two digits, but a 64-digit hexadecimal code.
Simultaneous responses occur frequently, but there can only be one correct in the end. When multiple simultaneous responses are presented that are equal to or less than the target number, the network decides by the simple majority which miner to reward, i.e., whose response to accept. The advantage is given to those who have done more work – they selected the hash and checked the work.
To start mining, you need to purchase the necessary equipment, install the software, and configure it before launching. Next, you need to take care of the heat and noise insulation of the room, the smooth operation of the mining farm (people stopped mining on personal computers back in 2012), and also the wear and tear of the equipment. The result is a rather costly undertaking: you need to have impressive start-up capital and be technologically savvy.
Is it possible to mine bitcoins in another way? Yes. The trend of recent years is cloud mining. In this case, you rent capacity remotely from a large service. Usually, payment is made in cryptocurrency or your national currency. It is enough to have access to the Internet and the ability to pay for the selected power.
Why does Cloud Mining so attractive to miners?
You don’t need to be a technical expert or a cryptocurrency guru to start cloud mining. All you need is an internet connection and device (PC, mobile phone, etc.).
You can start with small investments and gradually reinvest income to increase your computing power. You can also diversify your investments, but better to start with BTC.
When you rent computing power, you usually sign a contract. This gives certain security to the miners. However, this area is filled with scammers, and if you decide to mine through a cloud service, choose only reliable providers.
SunMining company provides “green” cloud mining services – renting the capacity of its data centers for users. This is a simple method to mine bitcoin without the noise of equipment functioning at home or the need to spend a large amount of money on it. This saves a ton of effort and time since you don’t need to keep track of the equipment, pay your electricity bills, or take care of it – the equipment is already set up and ready to go.
Each contract differs in cost, lease term, amount of leased capacity, and referral bonus level. Payments are accepted using the world cryptocurrency Bitcoin, making the system accessible and secure to everyone.
In case of any questions about the service or suggestions, write to,
firstname.lastname@example.org, support specialists will help you with every question. To keep abreast of the latest news about mining and cryptocurrencies, you can join the official SunMining telegram channel and subscribe to the company’s Instagram.
Disclaimer: This is a paid post and should not be treated as news/advice.