Among the revolutionary technology of the Blockchain is mining, which is one of the most important areas of profit through investment in the digital revolution
Mining is a practical process to create a virtual currency. Unlike currencies as we know today, governments and banks can simply choose to print unlimited quantities. Technically, it is a complex calculation aimed at checking, documenting and recording transactions between electronic currency portfolios. To obtain an equivalent for each block, these operations produce computational equations, And the mining program that solve sophisticated algorithms in order to release blocks of coins that can go into circulation or can be bought or acquired anything then the metal is a bank as in the classical financial system
The higher the number of minerals, the greater the difficulty of mining. A variable factor changes every time as it is programmed within the currency work protocol to be mined. The competition between the two metals is the strength of the Hash, the higher the metal is, Thus increasing its profits
As for the types of mining are many but the months and most used are
POW or Proof of Work.
It is a mining that is made by using Ka-antminer-s9 mining devices or computer CPU processors or GPU graphics card ...... and is divided into
- Solo mining is a person directing all the power of his machines (HASH) for his own pool, but this is useless and requires millions of dollars
- Mining within the pooling Pool Mining depends on the same principle but here everyone is involved in one pool to assemble more Hash to be able to collect the pool to obtain the block from the collection of the power of the Hash in the stomach in the same urine and of course distribute the profit according to the power of which he participated In the process of solving the block algorithm.
POS or Proof of Stake
It is a machineless mining that relies only on a deposit with a more interest-based principle and is a means of securing a certain encrypted currency network and achieving a consensus distribution by requiring users to show ownership of a certain amount of currency.
Finally, as economist Adam Smith says, the value of a thing is determined by the user's need and use, and the value of a swap is determined by what the owner can get against other goods. Obviously, the two values are different, but the basis for them is the value of the work done in them. A fixed value that will in all cases remain a true criterion for the real value of the commodity at any time and place. Which gave the value of the first digit digital currency in the world now worth more than $ 3400 this in terms of the value of work required to produce and the value of currencies in general as an intermediary and the value of the exchange of goods and products in addition to the features do not exist in the traditional currencies that can visit Unlike encrypted digital currencies that guarantee the security and ease of transactions without intermediaries and central banks know everything about you, which contributed to the increase in the volume of trading and the use of digital currency to more than 200 billion dollars.