Cryptocurrency Mining and Blockchain Scalability
Being popular as both a subject and activity, cryptocurrency mining or cryptomining—from the analogy of mining gold—is one of the most common ways to earn, collect and create coins. Of course, crypto coins aren’t like humans and animals; they won’t procreate and multiply by themselves for you. You have to work and be a crypto miner to earn and make coins. But here’s a little warning; cryptomining is far from easy and free.
Cryptomining is like the water to a plant; it’s the backbone of cryptocurrency network. It’s a process to update data, verify transactions and prevent fraud. And miners do that job; they check and validate transactions to make sure that users aren’t trying to illegally spend the same coin twice. Transactions are verified by solving difficult math puzzles and the first miner who solves a puzzle places the next block and update data on the blockchain. After all of that, the miner then claims the reward of newly generated coins—far from easy.
When cryptocurrency was starting, anyone with computers and internet access can participate in mining—the more miners, the faster transaction, and lesser fraud. The problem is, as the number of miners grows, the difficulty level of mining also increases, as well as the coins you make wouldn’t even pay your electric bills. That’s why mining equipment like ASIC Bitcoin miner was invented to adjust the difficulty level of cyptomining. Cryptomining equipment costaround $500 to almost $2000—far from free.