Cryptocurrency is a kind of digital currency or "virtual money", which unlike fiat money (approved by governments as a legal means of payment) do not have physical embodiment. A unit of crypto currency is considered to be a “coin”. As a rule, accounting for such "coins" is decentralized, and the functioning is operating on technologies such as blockchain.
Blockchain is a continuous sequence of blocks built according to certain algorithms, which carry information in themselves. You can compare this with a digital decentralized transaction log, which can be used to store not only financial transactions, but also any other information.
Mining is the process of creating new structures (blocks in the blockchain) to ensure the functioning of crypto-exchange platforms. Creation of the next block in the chain provides for remuneration due to additional emission of cryptocurrency or commission fees for the execution of transactions. Typically, mining is understood as a series of calculations with a search of parameters for finding a hash with certain conditions. Different cryptocurrencies use different computational algorithms. Reward for the processing of such algorithms stimulates people to use the computing power of various computing devices (miners, ASICs, powerful video accelerators) to support the operation of virtual currency networks.
Cloud mining is a way to gain cryptocurrency by using a remote data center. The equipment is managed by the contractor, and the investor rents computing power and steadily receives income. Our Company completely takes over all the technical part, so that you can concentrate on your main activities, and we will take care of everything else to ensure the most effective mining process.
Hash rate is a unit of measurement of the effective computing power of equipment involved in the production of crypto currency on some particular algorithm. And the higher this value is, the faster the it calculates the hash, which is needed to process the current block in the chain.
Typically, a hash rate is measured in the following units:
- hash/second (H/s);
- megahash/second (MH/s);
- gigahash/second (GH/s);
- terahash/second (TH/s);
- petahash/second (PH/s).
Mining difficulty is a quantity that shows how difficult it is to solve a mathematical problem for finding a block and getting a reward for it. This indicator is automatically recalculated in a given time interval. For different cryptocurrencies this time interval has different values. For example, a change in the difficulty of mining bitcoin occurs at every 2016 blocks, the mining of which takes an average of 2 weeks. According to the program code, the complexity indicator changes as follows: the search for the next block should take about 10 minutes, regardless of the number of miners and the total hash rate.
If we consider it in terms of Bitcoin, then the transaction is a signed special section, which is transmitted via the bitcoin network and is assembled into blocks. This section carries information about previous transactions and compares the amount of cryptocurrency funds transferred with recipient addresses. Information about the transaction is transparent and is not encrypted in any way. Different platforms usually provide information about transactions. Sometimes, for a transaction, you will need several confirmations in the virtual currency network. Therefore, the transfer of funds may take a longer time.
Cryptocurrency wallet is a special electronic system for storing various cryptocurrencies. Wallets are of two types: "cold" and "hot" storage. The difference is that the first store digital coins offline, on a physical storage. This can be a hard disk or a removable USB drive. Storage on a cold wallet is highly secure, but not very convenient in terms of functionality, so this method is more suitable for storing large volumes of cryptocurrency. Hot wallets are usually used for storage and everyday use of small amounts. Also, hot wallets are divided into usual (for one currency) and multi-currency, where you can store various cryptocurrencies and convert them.
Not so long ago, it was possible to mine cryptocurrency using a personal computer. For many people, this method of income was suitable, and the number of people and computing power employed in this business has been growing every day. And this began a proportional increase in the mining difficulty of virtual money. This led to some companies developing and manufacturing special devices for the production of virtual coins - ASIC-miners. These are computing machines, powerful enough in terms of power consumption and performance, whose task is to produce certain mathematical calculations. The participation of a human in setting up and maintaining such a device, therefore, becomes minimal. ASIC is ready to work after a few simple settings. At the moment, ASIC-miners are the dominant professional instruments in the market of hardware for the cryptocurrency production. The most common miners at the moment are ASIC devices that work on the algorithms SHA-256 (Bitcoin) and Scrypt (Litecoin).