What is cryptocurrency mining?
Cryptocurrency mining is a process of creating new digital "coins." However, that is as far as simplicity goes. The process of recovering these coins requires solving complex puzzles, validating cryptocurrency transactions on a blockchain network and adding them to a distributed ledger to locate them.
By mining, you can earn cryptocurrency without having to put down money for it.
- Bitcoin miners receive bitcoin as a reward for completing "blocks" of verified transactions, which are added to the blockchain.
- Mining rewards are paid to the miner who discovers a solution to a complex hashing puzzle first, and the probability that a participant will be the one to discover the solution is related to the portion of the network's total mining power.
- You need either a graphics processing unit (GPU) or an application-specific integrated circuit (ASIC) in order to set up a mining rig.