google-site-verification=RoadygaH2N3jsP-zBochCrn0ABtnedK76rnS7kMfyOU
Take a fresh look at your lifestyle.

What are the most profitable cryptocurrencies for mining? Part I

0


For a few years it has become common for everyone to hear about cryptocurrency mining. Whether a friend or family member started doing it, and told us that we should try it ourselves. That we read news on the internet about mining and the profits it generates. Or that we handle Bitcoins or some other cryptocurrency, and we want to get even more involved. Mining is already part of our daily lives, so from CriptoTendencia we prepare this special for you, explaining everything you need to know about cryptoactive mining in the Blockchain.

Blockchain technology and mining

To begin with this saga of articles, we must first explain what mining is, and why it is an important element for the crypto world. Therefore, we must start talking about the relationship between mining and Blockchain technology.

Let’s remember for a moment the concept of Blockchain technology that we already explained in our ABC Crypto. Well, blockchains are nothing but a distributed database, where all participants validate the operations performed by the other users of the network.

That is, unlike the operation of any centralized platform ,. In which there is a central server that is responsible for processing each and every operation. When using Blockchain technology, it is the network users themselves who are responsible for carrying out this process.

This means that, the computing power required for the maintenance of a platform like Bitcoin, or of Ethereum’s multiple smart contracts. It is not found in a Google or Amazon server farm, but is located in your community. It is the men and women who participate in the crypto world, who put part of their computing power to ensure the security and operation of the network.

Where does mining come in?

However, although this sounds great, what is the mechanism by which network users collaborate with its maintenance? Well, at the end of the day, without relying solely on the willingness of users to collaborate with the project, it is likely that it will not be able to gather the necessary capabilities for platforms of the size of Bitcoin.

Therefore, Satoshi Nakamoto devised a system to encourage the participation of users in the construction and maintenance of the Blockchain network: mining. Mining It consists of the process by which a user lends to a blockchain the processing power of his equipment, so that it executes transactions and fixes them in the blocks of the Blockchain.

Mining eliminates the need to maintain large servers

In exchange for this work, the user will receive a reward in the cryptocurrency that is undermining. What allows to attract multiple people to mining and allow the correct functioning of the Blockchain of any cryptoactive.

Thus, it is clear that mining is the fundamental engine of the crypto world. An element without which decentralization that is the central element of Blockchain technology would be impossible. Well, by not relying on a single entity for the blockchain to work, cryptocurrencies gain independence.

However, this is not the whole story, because at the end of the day cryptocurrency mining is not free. In addition, the fact that there is a division between those who undermine the cryptocurrency, and those who are only users of it, also establishes a differentiation in the influence that each group has in the management of the Blockchain.

As far as profitability, power relations within the Blockchain, the situation of mining in the crypto market in general, the equipment required for it, and all the elements related to this activity.

These are issues that we must fully understand, to decide if we should be part of the cryptocurrency mining process. Or if it is preferable to stay out of this activity. And it is all these issues that we are going to discuss in the future deliveries of this saga about mining.

The following two tabs change content below.

International Studies student, interested in economics and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and cryptocurrencies in particular.



Leave A Reply

Your email address will not be published.