“Mining”. When said, the first thing someone imagines is a person with a hard hat on his head(with a cool light source dwindling it’s way over the top like some gem in a kings crown), a stone crushing tool in hand ( I don’t know what it is called in English…Yes I am illiterate.) and a hell lot of mud on the clothes.
Yes that is exactly what Cryptocurrency mining looks like too. In no way it looks like a nerd sitting before a computer, solving math problems and earning rewards for the problems the nerd solves. Or wait…. Maybe that’s exactly how crypto Mining looks like. But people… trust me. Mining is the coolest part of journey of any cryptocurrency.
Now as te name says “Crypto Mining”, it is very obvious that this coming part is going to be a deeper dig into the matter(Wow…!! What a metaphor..!! Self five..!!). Let’s enlighten ourselves with few good things.
Because Mining is the MOAB: Mother Of All Bitcoins (not mother of all bombs) is a term first coined by me in 2018(Yaay!). I am specifically calling it a mother because the mining leads to formation of new bitcoins or as a matter of fact any cryptocurrency.
As we know , governments can issue fiat currencies in exchange for gold and can bring them into circulation. But this is not the case with crypto entities. Being digital in nature, there should be some gold to exchange with the cryptocurrency and that gold my friends is data.
As ancient scriptures say, the proces of finding the treasure is divided in multiple ninja techniques. If all these techniques are performed in a single attempt, the seeker might get the crypto treasure as award.
Let us see the techniques and be a master.
Ninja technique 1: The Miners and the block
Miners look out for blocks which they can translate into new blocks using hashing. The new blocks basically contain the information of transactions provided in public visibility mode to make it fair and transparent in nature.
Ninja Technique 2: The Hash Dragon
Hash codes are basically small 256-bit strings which contain the complete data of a block. This header of a block is taken as hash code and is inserted into the newly created block in order to create a link between two blocks. This interlinking of blocks create a network of blocks. This gives rise to a new blockchain.
Ninja Technique 3: The Conquest Of The Katana
The main difficulty in the whole mining process is generating or finding the hash code. Mathematically it is very difficult to compress a huge block data into a 256-bit string. But the one who fights this fire, gets the katana of seven paths.
Ninja Technique 4: The Final Showdown
Once the right hash code is found, it is easily inserted into the new block. With each generated block, the miner gets 0.25 units of cryptocurrency in his account, added as reward. The people whose block is created have to pay the miner some amount as an incentive bonus. So basically a miner gets a lot of money for fighting someone elses wars, just like some rogue assasin.
Yeah…. That all Ninja and stuff is okay…. But how do I as an investor in Mining benifit from this whole thing?
See, basically the investors in mining invest in finding new cryptocurrencies or creating them. The whole foundation of mining is based on virtual assumption of existance of some currency which exists just as a string of few digits. Mining gives you an opportunity to discover some gold(data) and forge some coins out of it. Who is going to know if you keep some coins for yourself?
So my dear Indiana Jones’s of the Matrix world…!!
Keep Digging using the above Ninja Techniques. And also send me some coins if you have a few extra.
Till then…. Ahoyyy(*Sudden Vanish With Smoke(Ninja Technique*)…!!