This blog post is going to be of help to those who’re interested in cryptocurrency mining. So read thoroughly till the end to gain maximum information about cryptocurrency mining. Without further ado, let’s get started:
What Exactly is Cryptocurrency Mining?
Simply put, cryptocurreny mining is the process of gaining cryptocurencies by solving complex cryptographic equations via the use of computers. It involves verifying data blocks and keeping the records of transactions in a public ledger called Blockchain. In technical sense, crypto mining is a transactional procedure involving the use of cryptographic processes and computers to solve complex functions and add transactional data to blockchain. There are networks of devices, which are involved in cryptocurrency mining and keep shared records through those blockchains.
Is Crypto Mining Legal?
Determining if cryptocurrency mining is illegal or legal mainly depends on the following aspects:
- Your geographical location
- You mine digital currency through legal means
How Does it Work?
The entire crypto mining process starts with Blockchain, an online decentralized ledger that keeps transactional record throughout a network. A set of approved and validated transactions is known as block. These blocks are kept together forming a chain.
In Bitcoin network, a miner’s aim is to add separate blocks to blockchain by solving complex mathematical equations. This requires a huge computational energy and electrical power. Although many crypto minters compete to validate and add each block, the one solving the complex the problem wins at the end. Users need to have specialized hardware to perform cryptocurrency mining.
As a writer, Ruben is an advocate of blockchain technology and cryptocurrency in general. He writes about all things from cryptography to economics, with a focus on how it applies to cryptocurrencies. He is also passionate about writing about topics such as decentralization, open-sourced software development, and copyright law.