Not many people know that cryptocurrencies initially came out as side products of other different invention. The one who actually invented Bitcoin – one of the most important & well-known cryptocurrency – did not mean to actually invent a digital currency or any currency for that reason. His goal was to make something that was still not invented in the digital world. Post-failure of all the centralized attempts, he tried to build a cash system that does not have any central entity. Like a normal person to person network for sharing of a file.
This decision was one of the major reasons for the invention or more like for the birth of cryptocurrency. If you will, however, take out all the sound and hype around them you will find that these are just limited entries in a record which no one can change without satisfying any of the certain conditions.
The concept of cryptocurrency mining is still not one which is very clear to the average or daily person. The idea or thought of how does one finds a cryptocurrency is still not a common or known one. There are a lot of factors to take into consideration when mining and they can prove to be very complex.
What do you mean by mining? It can be actually accurate in some of the aspects but can be very deceptive in some of the cases. More or less it is assumed by the common public that miners make, break down or find cryptocurrencies. However, the reality looks somewhat like that miners have to actually solve down all the equations which are designed or placed to look after the security & integrity of the crypto’s circulated blockchain ledger which is there to track and keep in check each & every transaction. And, in return of actually solving and breaking down those equations the miners are awarded those cryptocurrencies that they have mined.
Cryptocurrency mining limits
In practice and not, in theory, it means that miners from all around are actually competing against each other to calculate as many hashes as possible and fastest to get the best payout or output of doing so and also hoping that they will be the correct ones. However, the difficulty level of actually calculating and solving the hashes or scales & every new batch or hashes of bitcoins difficulty level scales up. However, in theory, it is stated that the difficulty levels of solving the hashes remain same or constant throughout all the levels.
Mining pools are particular groups which are or have several miners who actually divide their resources to mine together and also share their rewards after. Because solving the hashes after every stage in mining get more difficult, the miners are actually considering group mining to help each other and then divide the profit equally or accordingly how much one miner has contributed in solving a hash. No matter, this seems like much more of a quick and beneficial concept.
Here is everything you need to know about cryptocurrency mining. Hope this helps!