What is mining?
Cryptomining is a process of checking transactions for various forms of cryptocurrency and adding them to the blockchain ledger. Cryptocurrency mining, also known as crypto mining, altcoin mining, or bitcoin mining (for the most popular form of cryptocurrency), has become both a subject and an activity because of the use of cryptocurrency has grown exponentially even in recent years.
Every time a cryptocurrency transaction is executed, a cryptocurrency miner is responsible for ensuring the authenticity of the information and updating the blockchain with the transaction. The exploration process itself involves competing with other crypto nominees to solve complex math problems with cryptographic hash functions associated with a block that contains the transaction data.
The first cryptocurrency miner to decrypt the code is rewarded for authorizing the transaction, and in return for the service provided, the cryptominers themselves earn a certain amount of cryptocurrency. However, to be competitive with other crypto miners, a cryptocurrency miner requires a computer with specialized hardware (ASICs).
What are ASICs?
An application-specific integrated circuit (ASIC, also custom chip) is an electronic circuit that has been implemented as an integrated circuit. The function of an ASIC can no longer be changed, the manufacturing costs are lower with high one-off costs.
You can also consider ASIC devices to be similar to the microprocessor and random access memory (RAM) chips in your computer. ASIC miners are not general integrated circuits, but rather special integrated circuits that were developed exclusively for the crypto blockchain. An ASIC usually only works with a certain algorithm and cannot be used for other cryptocurrencies that are based on another algorithm.
What are the Crypto Mining Algorithms?
There are few algorithms that are used for crypto mining. The most popular are:
- SHA-256
- Ethash
- Scrypt
- Equihash
- Cryptonight
- X11
We are using SHA-256 and Scrypt algorithms.