Cryptocurrency Mining

Cryptocurrency mining is the activity where cryptocurrencies are generated, as well as the transfer of cryptocurrency which is carried out by transfers.
In order to obtain cryptocurrencies through mining, there are 2 mechanisms, one of which is the Proof of Work and the other is Proof of Stake.

Proof Of Work

This process is carried out with computers that are very advanced, and that have large processors which support the blockchain technology.
And what they do with these powerful computers is to solve a series of hash antics.
Once the riddles are solved, the technology makes a series of transactions and they are added in a chain of blocks.
After this, what remains is to collect the coins obtained by this activity.
The coins that are obtained per block are deducted a small commission for the transaction received.
Each cryptocurrency has an established amount for each block issued.
When Bitcoin started it gave around 50 BTC for 10-minute blocks.
With the passage of time and the high price of the coins, the value per block has decreased.
Reaching around 12.5BTC per block, and as time goes by the value per block will continue to decline.

Requirements to mine

Those who dedicate themselves to mining have to have last generation equipment.
In general, CPUs must have video cards, programmable chips, and there are some cryptocurrencies that can require specialized chips.
According to the different cryptocurrencies, the requirements vary.
There are some cryptocurrencies that only need the use of the CPU.
But according to its complexity, and the investment that must be made in them also varies the price of the currency.
And that is why, according to the cryptocurrency that is being mined, there are some that only give profits to the most powerful processors.
The codes to be use can be both open and closed, and the software to be implemented is different.
In general, the processors used for mining have a power source that goes from 600 to 2000 watts.
And they must have a two-phase connection so that the electrical consumption is balance.
The internet must be a connection that remains stable.

Proof of stake

This methodology consists in the user sending a special transaction, and the cryptocurrency balance is blocked by a short one.
After this process, users can create and validate blocks.
Actually this process is very similar to winning a bingo, because when doing the procedure of blocking funds, the system what it does is create a ticket to enter a chain.
Users can vote for any user that has generated a ticket, and the one that receives the most votes will be the winner of the block.
This activity is know as staking.
However, there are certain conditions that apply for the user to be credite once they have won the ticket.
One of them is that once the ticket is select as the winner, the winning user must be online.
If it is not online, the user loses automatically, and the reward of the block won is not credited.

Mining groups

The mining groups work together to reduce the percentage of loss. And the generated profits are divided within the group.
When they work according to the methodology of Proof Of Work in the group, they gather all the profits generated, and equally divide the computing power, according to the amount of work that has been generated.
While in the Proof of stake methodology users join forces and vote for a specific user and run a complete node.
Only in that way guarantee profits.
Mining groups began with the need of users to generate cryptocurrencies, since it would take a common user years to generate a block.
So the users learned to join forces and thus stay with a part of the block.
But like everything, there must be a person in charge of all the processes that are carry out, apart from dividing the blocks, as well as the generated profits.

Some advantages of group mining

One of the advantages is that there are small miners who can enter this modality and obtain profits.
In the same way, the risk they incur when mining per block is greatly reduce.
Disadvantages of group mining
The users focus on casting votes of their group, which causes the network to be centralize.

Mining in the cloud

Cloud mining is one that allows users to acquire some hardware mining capacity in remote data centers, for a short period of time.
This translates into a rental of computing capacity, which provides certain requirements to the user, since it would not need a great last-generation special equipment for mining.
As well as the need for broadband, or large power consumption.
Today there are several cryptocurrencies that provide mining service in the cloud, including Bitcoin, Litecoin, Dash and Ethereum.
Users who purchase this type of service must be very sure of the cryptocurrency service they are granting.
Because there are many services of this type, which only do is to scam people.

Some sites to mine cryptocurrencies

There are some sites that are excellent for cryptocurrency mining, among them are:
GoEx where deposits of several cryptocurrencies are made.
Cryptominingfarm which grants from 50 GHS for Bitcoin mining.
Dominant Finance is another option, which offers the option of virtual cryptocurrency mining.
In the same way this Minergate which allows bitcoin mining either from the computer, or from the mobile phone.
And finally this Eobot which allows the mining of satoshis totally free.

Conclusion

Users to perform mining must do so from pages that give some reliability.
Those pages that are not going to cheat, and also generate profits in cryptocurrencies.
The users even the most inexperienced, and who do not have a state-of-the-art equipment, can carry out mining.
As long as they join groups, or do mining from pages that allow them to mine without so many demands.