Have you ever wondered where cryptocurrency actually comes from? We’ll explain to you what “mining” has to do with it.
What could you use so many graphics cards for? (Source: Photocreo / depositphotos.com)
What is Crypto Mining?
The term “mining” stands for crypto mining and describes the process by which new units of a cryptocurrency are created and transactions are verified on a blockchain. This is done by powerful computers that solve complex mathematical puzzles. As a reward for their work, miners usually receive a share of the newly created cryptocurrency. Bitcoin, the first and most famous cryptocurrency, was created through mining.
How does it work?
Crypto mining requires specialized hardware, often in the form of powerful graphics cards or specialized ASIC miners. These machines perform complex calculations to verify and add blocks of transactions to the blockchain. The reward for this process varies depending on the cryptocurrency, but it often consists of newly created coins and the transaction fees of verified transactions.
The popularity of cryptocurrencies in 2021 is undeniable. This has not left the gaming community unaffected either. Prices for graphics cards have risen to unprecedented levels this year as they have been increasingly used for mining.
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Future of “mining”
The future of crypto mining continues to be exciting. As technology continues to advance, more efficient mining hardware and more environmentally friendly approaches are being developed. At the same time, changes in the cryptocurrency landscape, such as the transition to consensus-based models, could fundamentally change the face of mining.
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