Who is a cryptocurrency miner and what is mining about?
Simply put, the person that mines cryptocurrency is called a cryptocurrency miner. Also, he/she is the equivalent of a bank teller or cashier in the sense that he handles the processing of the customers’ transactions.
A guide is available at Coin Mining Direct for trading in the coins and currencies. The processing of the transactions is safe and secure for the individuals. You need to get the all the information from the guide to have the best trading experience. There is meeting of the needs and requirements of the individuals.
Now using this same logic we can better understand what cryptocurrency mining is all about and what the role of a crypto miner entails.
As said in our cryptocurrency article, the underlying technology for it is the Blockchain and it operates on a decentralized peer to peer network. The list of the records of each transaction that happens on the network is distributed to all the nodes on the peer to peer network. Collectively, all these lists are grouped into a block, of which reversal of the process can never be done. For Bitcoin, a block is of the size of 1MB and the Blockchain is designed to process one block every 10minutes, which is a disadvantage as it slows down the network and makes use of some cryptocurrencies such as Bitcoin annoyingly slow. After a block is successful and completely verified by all nodes, it is then updated in the blockchain
A Node Represents The Cryptocurrency Miner.
Now, a node in the peer to peer network that processes each transaction and verifies them represents Cryptocurrency Miner. That was why I said earlier that a miner is the equivalent of a cashier.
What The Nodes Needs For Successful Mining Process
Moving forward, for a node to successfully mine, it needs some specialized form of software as well as hardware so as to be able to handle the blocks and verify them. This is so because, when a miner’s computer is handling a transaction, it puts the transaction through a process where it applies a formula in form of a mathematical algorithm on it. The end result is called a hash, which is a sequence of alphanumerics. An example of an algorithm is Scrypt used for Litecoin.
Running the software and the transactions through the algorithm put a lot of stress on the computers GPU and the Motherboard as it has to accurately generate the right hash which is then sent through the Blockchain and added tithe public ledger. Once it successfully does This, the miner is rewarded with a coin.
Isn’t that interesting and very satisfying? Yes, it is, but then you have to get a hardware that has a strong and efficient GPU, you still have to consider the computers runtime and the energy consumption rate. You might be wondering why the CPU is not involved in this, the reason is, it is not as fast and efficient as GPU is when it comes to solving complex algorithms like those of a blockchain.
Alternatively, you can buy an ASIC designed specifically for Bitcoin mining, an example is the AntMiner S9. The advantages of using ASIC’s is that they can mine at unprecedented speeds and still consume less power when compared to normal PCs. The only problem is that they are very expensive.
These are the reasons why mining might not be profitable on a small scale level because of the starting and running cost involved in buying a computer with a very strong GPU and the electricity demands.
But oh well, if you do decide that you really want to mine, not necessarily to make a profitable gain, maybe for fun or learning purpose. After you have setup your mining hardware, next thing is to connect it to connect it to a mining pool over the internet.
There are two categories of a mining software, it can either be a Command line interface (CLI based) or a graphical user interface (GUI). This article quickly introduces 5 out of the numerous software we have.
This is a very flexible program written in C and hence it is compatible with almost any operating system. It offers a simple command line interface and it supports multiple mining pools and devices. it can run with a mining ASIC or the GPU of your PC.
This is another GUI based platform written in Java. It can work with an ASIC as well as a GPU. However, it is designed to work with the Bitminter’s mining pool.
This is available for both Windows and Linux based systems. Also, it is designed specifically to work with ASIC devices and not compatible with a GPU, but there are ways it can be configured to work with a GPU. It is CLI based but with options that are very clearly laid out.
This is a cross-platform software in the sense that It can work both Windows, macOS and even Linux. It also offers a way to manage multiple mining devices at the same time.
This is a GUI based software that It mines using both the CPU and an ASIC/GPU simultaneously. It serves as a GUI based platform for other mining programs such as CGminer and CPUMiner.
After you have setup both hardware and software for mining, you can then go ahead to set up your wallet to receive your profits.