A simple and informative method to explain Steem Mining to new people:
A few nights ago my girlfriend Trena asked me what I was doing. My response of 'mining' was quickly met with an elongated pause with 'huh?' immediately proceeding. It was in this moment which I was stuck with the daunting task of making my best attempt to explain exactly what the heck I was doing. Recalling my prior failed efforts to accurately explain this to others, I decided on a different approach. I'm not sure how this came about as I had not invested any time on this analogy prior, but I simply said, 'Mining Steem and crypto-currencies is like being a Taxi Driver.'
What does a Taxi Driver do?
A taxi driver is a professional driver who transports passengers to their chosen destinations through the use of a taxi cab. By transporting their passengers, they earn a fare depending on the length of the taxi cab ride.
https://www.sokanu.com/careers/taxi-driver/
Why does one want to be a Taxi Driver?
- They earn a fare
- They enjoy driving
- They are comforatable being in a vehicle
- They like the company of others
Why does one want to be Miner?
- they earn a reward
- they enjoy technology
- they are comfortable being on a computer
- they like crypto-currencies
Just for the Money?
Before venturing into the first desire above, it is important to realize that cumulative weight of secondary motivations and beyond are typically necessary to achieve the fare/reward. From my understanding (and definitely not from waking up in the morning hundreds of dollars short than when I started the night prior!) individuals who dance and take their clothes off can make a very large 'fare/reward' as well! Knowing this, doesn't that mean I should do that too?! For me, the answer is a hard NO. I personally do not have the confidence, dancing abilities or free-natured spirit those individuals have. In the same light, a person who despises driving, is scared in a vehicle and loathes the company of others, likely wouldn't make a very good Taxi Driver. Lastly, individuals who are scared of technology, frightened by computers and do not want to be around crypto-currencies would have a difficult time mining.
Now that we understand how important the combined weight of secondary motivations are to one's decision to become either a Taxi Driver or a Miner, let's explore how exactly a fare/reward is made.
- The job of the Taxi Driver is to navigate geographic terrain to a specified location provided by the passenger. Payment of a fare from the passenger to the Taxi Driver is confirmation that the job was executed successfully.
- In terms of mining, the job of the miner is to navigate digital data in an attempt to verify digital contracts and transfers from other users (passengers). Payment of a reward from other users to the miner is confirmation that the digital data was successfully verified.
- If the Taxi Driver is unsuccessful and drops the passenger off at a different location, or his vehicle breaks down, the passenger does not need to provide compensation regardless of how close they are. Even if the Taxi Driver arrives at the correct location but several hours later than originally required, compensation may and probably won't be provided.
- If a miner is unsuccessful in verifying assigned transactions of digital data, no reward will be provided. If the miner confirms transactions hours or days later, no reward will be provided.
Ok, so this seems broad enough for most individuals to understand. Let us explore what is required to make all this happen.
Taxi Drivers should have the following items in order to receive a fare:
- A Vehicle --- The Taxi Driver does not need to own one. Some Taxi Drivers work for a company who provide one to them for a cost.
- Gasoline
- A Map/GPS
- A pocket for cash payments or a Credit Card machine to take payments
Miners should have the following items in order to receive a reward:
- A Computer --- The Miner does not need to own one. Some Miners pay for a computer in the 'cloud.' If a miner chooses this option, a fee will be paid from the Miner to the company providing the computer.
- Electricity
- An interface which provides their computer with the information they need to verify
- A digital wallet to receive payment of their rewards
I have all of those items! So now I need to sit at my computer all day and actively mine?
Nope. When you first get in to a Taxi it is stationary and the driver is paying attention to you to find out where you want to go. From there, the driver typically has a conversation on his phone, chit-chats with you, drinks coffee, eats and obsessively blows his horn. The actual driving of the vehicle for the Taxi Driver is second nature to him and he has an amazing ability to multi-task. The Taxi Driver did all of those things for your entire trip but ultimately he got you to your destination... so you paid him.
The same goes for mining. You turn on your computer and point the mining program to it's digital destination. From there you are able to minimize the program and do anything else you so choose to. The computer knows in the background what needs to be done and just does it for you.
Are you telling me that I can Mine while streaming Netflix and building a huge customer database for my company at the same time?
Everything has limitations. For the Taxi Driver who uses a Ford Focus for a vehicle, it would be quite difficult for him to pick of a family of 15 Sumo Wrestlers. This is difficult for two reasons:
- The Taxi Driver will likely not have the space in his Ford Focus for the family.
- If he is Harry Houdini and somehow fits them all in, the weight of the car will be so tremendous it would take hours to arrive at the destination.
The same is true for your computer. Mining requires you to have memory and processing power. The Memory is equivalent to the space inside of the Ford Focus. The Processing Power is equivalent to the speed of the Ford Focus. If your other activities take up a lot of memory, or slow down your computer's speed, then it is recommended to using the mining tool when you are not actively using your computer.
Admittingly this analogy does not afford a person the resources to go and create CabCoin anytime soon. It was sufficient enough however for Trena who told me that she understood and appreciated the explanation. After which came another elongated pause and then she asked, 'So, we're going to become millionaires now?!'
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