Mining
Mining is the process of adding blocks to a blockchain and validating transactions. It’s also the method by which new bitcoins or altcoins are generated.
When a miner successfully validates a block, they receive a reward for successfully validating it. This is usually the equivalent of a few dollars or the process is keyed to how long it took to validate the block. It can also vary depending on the number of miners working on the block at the time.
The blockchain is a data structure that consists of blocks of transactions. It is managed by a peer-to-peer network of computers.
The blockchain data structure is made of a digital ledger where new transactions are added in chronological order. This process is called adding a new block. The transactions in the blocks are validated and verified by the network.
Miners take the information from a block, apply a mathematical formula to it, and transform it into something else. Create a new, much shorter sequence of seemingly random numbers and letters. This sequence is known as a hash.
In general, cloud mining offers the opportunity to mine BTC or altcoins using the computing power rented through cloud technology. Crypto investors do not have to directly install and operate equipment (mining rigs).
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