On this page you will learn everything about mining. What does mining mean, how can you make money with mining, and what different forms of mining are there.
Table of Contents
Mining is validating transactions on the blockchain with a computer. The purpose of this is to verify transactions that take place on the blockchain. Every transaction on the blockchain is public. This means that you can look up all transactions that take place on the blockchain. A computer has to decide whether a transaction is actually correct. Each transaction is verified several times by random computers. If a transaction is sufficiently approved, the cryptocurrency is sent from sender to receiver.
Making money with mining
To send cryptocurrency on the blockchain, a small fee is paid to the miners who check whether your transaction is correct. The busier it is on the blockchain network, the higher the tip that is paid to the miners. If the tip is higher, it becomes more and more attractive to start mining. In this way the network always remains in balance.
What does mining cost?
During mining on the network, a lot of energy is consumed. All your computer does is calculate mathematical formulas to approve the transaction. This takes quite a bit of power. It often consumes the maximum available power of your computer. This ensures that you use more power than you would expect. You can calculate what the expected yield is, compared to the power you expect to use.
There are several tools that you can use to calculate this.
Mining and storage
To store your crypto coins you need a wallet. Storing the coins you mine is not difficult, but it has to be done. CryptoBieb tries to do everything it can to make learning about blockchain easier for you. Click below to continue to the page where you can read everything about wallets.
How can you mine?There are 3 different parts needed to start mining, namely:
- 1.Mining hardware The mining hardware is a computer. You can use a computer for this, but due to the professionalization of the cryptocurrency world, many mining rigs are used. A mining rig is a computer system that is specially designed to approve as many transactions as possible with the lowest possible energy consumption.
- 2. Mining software Mining software are programs that instruct your computers to fulfill the transactions. These mining software are also often connected to mining pools.
- 3. A mining pool A mining pool connects different miners to start mining together. Because mining alone is becoming increasingly difficult these days, there are mining pools. This means that there are people mining together in groups, to share the rewards with each other. This gives everyone a greater chance of a reward and therefore more profit for everyone.