How to mine crypto currency(ALTCOINS) !!

in #bitcoin7 years ago

hi guys.. today i'm going to show you how to mine cryptocurrency . first of all you need to know the basic things about cryptocurrency and mining the currency.
A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets. Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies.

Bitcoin, created in 2009, was the first decentralized cryptocurrency.Since then, numerous other cryptocurrencies have been created. These are frequently called altcoins, as a blend of alternative coin. Bitcoin and its derivatives use decentralized control as opposed to centralized electronic money and central banking systems. The decentralized control is related to the use of bitcoin's blockchain transaction database in the role of a distributed ledger.a Digital form of currency which can be used as real
2.In the context of cryptocurrency mining, a mining pool is the pooling of resources by miners, who share their processing power over a network, to split the reward equally, according to the amount of work they contributed to the probability of finding a block. A "share" is awarded to members of the mining pool who present a valid partial proof-of-work. Mining in pools began when the difficulty for mining increased to the point where it could take years for slower miners to generate a block. The solution to this problem was for miners to pool their resources so they could generate blocks more quickly and therefore receive a portion of the block reward on a consistent basis, rather than randomly once every few years
mining has the following payment methods:
1.Pay-per-Share[edit]
The Pay-per-Share (PPS) approach offers an instant, guaranteed payout to a miner for his contribution to the probability that the pool finds a block. Miners are paid out from the pool's existing balance and can withdraw their payout immediately. This model allows for the least possible variance in payment for miners while also transferring much of the risk to the pool's operator.

Each share costs exactly the expected value of each hash attempt

2.Proportional
Miners earn shares until the pool finds a block (the end of the mining round). After that each user gets reward {\displaystyle R=B\cdot {\frac {n}{N}}} R=B\cdot {\frac {n}{N}}, where {\displaystyle n} n is amount of his own shares, and {\displaystyle N} N is amount of all shares in this round. In other words, all shares are equal, but its cost is calculated only in the end of a round.

3.Bitcoin Pooled mining[edit]
Bitcoin Pooled mining (BPM), also known as "slush's system", due to its first use on a pool called "slush's pool', uses a system where older shares from the beginning of a block round are given less weight than more recent shares. This reduces the ability to cheat the mining pool system by switching pools during a round, to maximise profit.

4.Pay-per-last-N-shares[edit]
PPLNS method is similar to Proportional, but the miner's reward is calculated on a basis of N last shares, instead of all shares for the last round. Therefore, if the round was short enough all miners get more profit, and vice versa.

NOW BITCOIN MINING HAS BECAME VERY DIFFICULT DUE TO INCREASE IN THE DEMAND OF BITCOIN ITN REQUIRES HUGE AMMOUNT OF POWER TO MINE HENCE ALTCOIN MINING IS PROFITABLE.

Any body can mine these currencies with a computer .First of all the person has to connect the computer to a mining pool where group of miners are connected to same server to mine a block of crypto currency and share that block reward according to their computing power. Basically mining is a process that validates the coins transaction by solving the form of math problems called cryptography and the miners are rewarded by the transaction fees.

GRAPHIC PROCESSING UNITS (gpu) are used to mine cryptocurrencies as they are made for graphic intense work. The users reward depends upon the computing power of the machine the higher the processing power the rewards will be higher .

Sort:  

Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://en.wikipedia.org/wiki/Mining_pool