Crypto Mining

Crypto
Mining

Introduction 1:

It is the process that several
cryptocurrencies use to generate new coins and verify & process new
transactions. It involves using computational power to solve complex
mathematical problems, which ensures the security and integrity of the
blockchain network.

Introduction 2:

Crypto mining is the process by which
several cryptocurrencies generate new coins and verify and process
transactions. It involves using computational power to solve complex
mathematical problems, ensuring the security and integrity of the blockchain
network.

How it Works?

·       Transaction Verification:

When a transaction is
made using a cryptocurrency, it is broadcast to the network. Miners gather
these transactions into blocks.

·       
Solving Complex Mathematical Problems:

Miners compete to solve a cryptographic
puzzle, a process that requires significant computational power.
This puzzle involves finding a specific value (nonce) that, when
combined with the data in the block and passed through a cryptographic hash
function, produces a hash that meets certain criteria (usually a certain
number of leading zeros).

·       
Proof of Work:

The first miner to solve the puzzle
broadcasts the solution to the network. Other miners verify the solution, and
if it is correct, the block is added to the blockchain. This method is known as
Proof of Work (PoW).

·       
Rewards:

The miner who successfully adds the block to
the blockchain is rewarded with newly created cryptocurrency units and/or
transaction fees.

Conclusion

Crypto-assets can require considerable amounts of
electricity usage, which can result in greenhouse gas emissions, as
well as additional pollution, noise, and other local impacts to communities.

Rather than a PoW verification process, which requires vast
amounts of energy, climate activists are arguing for a less energy-intensive
verification process that isn’t reliant on speed, such as PoS, used
by Ethereum – another cryptocurrency.

Author: Arjun Kr. Paul, Faculty