1. First of all we have to make a definition of what is "coin mining" and then to explain what are the benefits and what are the negatives to be a coin miner.
"Crypto-currencies mining: Mining is a distributed consensus system that is used to confirm waiting transactions by including them in the block chain.
It enforces a chronological order in the block chain, protects the neutrality of the network, and allows different computers to agree on state of the system."
Source: "Bitcoin Website"
Since this description is too tech to be understood i have decided to look after some videos on Youtube to help you understand more clear. The movie below is based on BitCoin mining but it also describes the general view of every crypto currency miner.
2. With all this mania of crypto currency mining some people started to develop guides of how to become better in that. The biggest problem is that some of the explanations were too pro's to be understood by a non IT person.
The idea of this blog is not to create a complete step by step guide, but to give an overall explanation for some common questions that people ask everyday and also to connect to some Pro's in the branch.
So, if you are not an advanced user having experience with Ubuntu or Linux, then you should check the guide for begginers in mining.
3. Some of the common questions i have found are:
3.1. Should i mine alone or in pools (group of individuals working together on solving a bigger coin network)?
Answer: You better join group pools to be more effective because the reward (coins) are given after the mathematical network is solved! That's mean that you will not be rewarded before the task is ready, and when that task is ready you will receive a big number of coins split by pool.
3.2. Do i need a good computer configuration?
Answer: Yes, you need! It seems like a new business but some people created a special hardware configuration which are designed specially for coin mining. It cost money and the investment could be from 1000$ up to couple thousand dollars.
4. Where to find those Pools and Who are the Best Pools?
I have looked around the internet and found which are the best places to join and mine together with a team. For example to mine Bitcoins you have to check Bitcoin Hashrate Distribution. Check the biggest groups there.
5. Conclusion
I have covered the general view of Crypto Currency Mining theory. I have also added a lot of material for people which are interested in more details.
I have plans to add even more deep detailed posts for different coins, pools, miners. Stay tuned!
No comments:
Post a Comment