Cryptocurrency is a digitally designed asset, used as a medium of exchange worldwide which consists of strong cryptography to secure the transactions. It is directly transferred by the peer-to-peer technology.
Cryptocurrencies are an independent medium of funds exchange, which is used worldwide.
Decentralized cryptocurrency like Bitcoin now possesses a chance of providing personal wealth, which is beyond any kind of regulations from governments.
Bitcoin was a trendsetter in the field of cryptocurrencies, which started its journey in 2009. Now cryptocurrencies like Litecoin, Ethereum and Dash are growing rapidly as well.
A Brief Introduction to Mining:
In the traditional economic scenario, the government decides when to print new currencies. Whereas in the field of cryptocurrency, the number of currency is fixed by its protocol.
Cryptocurrencies are limited in number, just like precious metals like gold. As an example, we can pick Bitcoin. From its very inception, the number of Bitcoins is fixed to 21 million. And just like you can earn gold through mining it, cryptocurrencies can also be mined, though through a very different and complicated technological process.
The miners, who devoted themselves to the mining of cryptocurrency, solve complex mathematical problems with the help of integrated and high-end computers. The objectives of the miners remain to claim the BLOCKS – which is the basic unit of the Blockchain technology.
Blockchain Technology – How it Works?
It is a unique system in the world of cryptocurrencies. Blockchain, which is an amalgamation of two words – “BLOCK” and “CHAIN”, is invented by Satoshi Nakamoto in 2008.
When we exchange our money through traditional systems, we have to put our faith upon a third party system such as a bank, PayPal, or MasterCard. They keep a record of each transaction privately through their ledger. But, unlike these conventional ways, cryptocurrencies use distributed ledger technique.
These records are kept in blocks, which contains cryptography of its previous block and timestamp along with the record of the transaction. Every miner has a copy of the Blockchain ledger, so anybody can check it. But, they cannot alter the documents recorded in the blocks easily.
In order to rewrite a single block, one has to completely alternate all subsequent blocks, which is possible only by a consensus from network majority. So they are ‘Secure in Design’. No individual can hamper the chain.
The Complex Process of Mining and the Role of Miners:
Have you ever wondered who the miners in cryptocurrency are and what actually they do?
Miners are the people who keep records of all transaction of cryptocurrencies. They verify the transactions as well. They use high-end technologies to solve mathematical problems for processing transactions, and they are rewarded in cryptocurrencies for this. They also receive sponsorship for newly circulated coins.
The underlying answer to the role of miners in cryptocurrency is discussed below:-
Each financial transaction is usually confirmed within 20 minutes. Within this time, miners compete through themselves to solve the mathematical problems first by with cryptographic HASH functions.
Specialized machines are needed for this purpose, which has to be kept in cool temperature and needs to be connected with round the clock electrical supply.
A Basic Guide to Proof of Work (PoW):
Cryptocurrencies use numerous timestamping methods or ‘schemes’ to prove the authenticity and validity of the transactions made.
The first scheme, which is widely used till date is known as the PROOF of WORK scheme, which is based on algorithms such as script, SHA-256, and CryptoNight. In this method, a computer or a set of computers that have the highest mining capabilities can solve the mathematical puzzle within a relatively short amount of time.
They also need a lot of electrical power to run smoothly. So, it indirectly supports the centralization of cryptocurrencies in the hands of agencies with financial power. This happened in the recent past when a single company captured almost 50% of all Hash power. Some experts also explained this process as a sheer wastage of electricity.
Requirements and Process of Mining in Different Platforms:
MINING IN ANDROID DEVICE:
MinerGate app supports mining through Android devices. The miner first has to install this app and have to create an account in it. From this app, one can directly mine various forms of cryptocurrency.
This app also has an in-built calculator to check mining profitability by calculating the Hash power of your device and the cryptocurrency you are interested in.
Cloud mining function is also available in this app on android. It is a hardware intensive task, so unless having a cutting-edge latest phone, do not try it. DroidMiner and LTCMiner are two other apps dedicated in the field of mining in android.
MINING in iOS:
This is indeed a very difficult task to do if you possess an iPhone or iPad. This can be deadly for those devices. Apple banned apps that support cryptocurrency mining. Mining in these devices is not fruitful as well, because one can’t make a large number of coins because of his device’s relatively lower amount of power.
MINING in COMPUTER:
This is the traditional way of mining, but mining on PC would not produce great results as huge computer systems are working with the same purpose worldwide. Anyone can try it by using their CPU and GPU. AMD, NVidia, and ATI are the best vendors of GPU. MONERO mining software is needed in order to mine in a PC.
MINING in WINDOWS:
One of the most sought-after ways of mining in Windows is by the usage of Bitcoin Miner. Its user interface is quite easy to handle and has an efficient power saving mode as well. Its profit report feature helps to know whether the mining you are doing is profitable or not. Bitcoin Miner 1.27.0 is the latest version of this software available.
How the Cryptocurrencies are influencing us?
Bitcoin – one of the major cryptocurrencies was first introduced approximately a decade ago. Most of the economists discouraged this initiative and proposed that it will cease to exist, as it is nothing more than virtual bubbles. Proving all of them wrong, Bitcoin is still at the top of its craze, and it succeeded to attract more than 21 million people. New types of cryptocurrencies are emerging in the market as well and as a whole, we can predict, the world of cryptocurrency is leading towards a flourishing future.
The Possibilities of Cryptocurrency Mining in April 2019
Since its inception, cryptocurrencies seemed like the most unrealistic source of income to big corporations. But, its huge success over the years has attracted many of them to participate in this system.
Microsoft, the fourth biggest corporation worldwide, recently decided to come in the crypto market. IBM & Citi formed a partnership to launch the Blockchain app store for the leading banks.
Volkswagen joined to a Blockchain power scheme in April 2019, backed by IBM.
Bill and Melinda Gates Foundation decided to build up a partnership with RIPPLE’s distributed ledger system for mobile payments.
There is a possibility that in upcoming years governmental structures will also adopt cryptocurrencies as a medium of transaction. Even, experts like Donald Tapscott claimed in an interview with Bloomberg on 17th April 2019, that the Chinese government is planning to turn their official currency Renminbi into cryptocurrency. In this case, the crypto market will prosper rapidly.
Governments regularly blame cryptocurrencies, only due to their misconception about them; so crypto did not gain much prestige in the populace. But crypto education is spreading, and crypto enthusiasts are growing in number. Surely it will make a positive effect on society and will encourage the common mass to use the decentralized currency in the world.
It is expected that the total crypto trading volume will increase by 50% in 2019, despite recent price downfalls. As the global powers are opposing the usage of their currency outside the home country, demand for cryptocurrency is rising. Cryptocurrency is already changing the global business and is capable of much more.
The cross-border trade is a field where cryptocurrency can be very useful. Payments for this kind of trade are made after a lengthy process via several banks. But, cryptocurrencies can easily reduce the time needed because of Blockchain.
The conventional economy requires a huge amount of paperwork. So, it needs a lot of clerical influence and confirmation. Still, it is not corruption-free. But cryptocurrencies record transactions in distributed ledgers, which makes it free of paperwork as well as corruption.
Cryptocurrencies highlight on the idea of peer-to-peer transaction. So, if enabled, it can end the roles of intermediaries and brokers which is surely fruitful for the common people.
Cryptocurrencies are regarded as the greatest system of peer to peer transaction without the interference of third parties. Currently most of the cryptocurrencies are sinking worldwide, however we can remain optimistic as the awareness and adoption of cryptocurrency is flourishing. We can hope about greater accessibility in the near future. Some experts are warning against the use of it, but we have to remember that every pathfinding project receives a negative review at its initial stage.
When we really think about it, are we that far away from a cashless society anyway? With touch card payments, Apple Pay and such, most of us don’t get our hands on cash.
If Crypto provides greater security, reduces transaction costs and improves process efficiencies, count me in!
Check out the Top 100 Crypto Coins and view real time price data and information; click for Cryptocurrency