How Does One Mine Crypto? Looking At The Mining Process InFilecoin (FIL) mining server

Mining refers to the process of recording digital transaction records to the Blockchain, a public ledger where users and traders can see the history of every crypto mining transaction. So, you can say that mining is also a process of auditing, as it keeps the record of every transaction through technological advancements.

To better understand the scenario, one must know that Blockchain is decentralized. It differs from traditional banks because it lets miners (users who record crypto transactions) do it on their own or by a peer. And so, there is no central mechanism in the Blockchain to record every transaction. When you trade, buy, or sell crypto, you want to get a miner to check the authenticity of the transaction and the value of the crypto itself. Every crypto miner contributes to the public ledger, but they also receive incentives.

How do you mine crypto?

Mining crypto is also synonymous to discovering a new crypto in the market, which is where it got its name— “mining”. In the real works, gold mining means digging through the earth and hoping to strike a gold. Miners in the crypto world does the same as well. They search people who will transact crypto and hope that they take them as their miners who will record the transaction.

Miners do not only search for users who will trade, but once they get hired to do the job for the parties, they need to solve through mathematics problems. Since there is still some math to recording and auditing, crypto miners make sure that the transaction process is not only valid, but also secured and correct. The Blockchain shall add their record if they were able to successfully solve the problems. The incentive for them, then, is crypto tokens.

Miners then aim to make the network as authentic and reliable as much as possible. Since people are continuously investing in them, they have to provide somewhat of security to the investors. And knowing how Blockchain wants to lead astray from centralized processing, miners become the computing power that maintains the network of Blockchain.

What are the requirements?

To better understand the requirements for someone who wants to try out crypto mining, they must first understand how mining came to an evolution as it is today. Before, people were able to mine crypto using just their personal computers. It was a work-from-home setup to say the least. But then as many investors started coming and investing, mining crypto became harder because it required efficiency one would not get in their personal houses. Today, however, mining became something that requires a hardware and powerful electricity and even servers like Filecoin (FIL) mining server. As it literally never stops, because the Blockchain technology requires a lot of electric power, then people follow that. Moreover, the computer power needed is also immense, insofar as actuarial activities are needed and the process of recording is also vital to their work. And so, one might think that mining is as easy.


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