What is cryptocurrency mining?
Cryptocurrency mining is one of the most commonly used methods of validating transactions that have been executed over a blockchain network. Not only does blockchain work to protect transaction data through encryption, as well as store this data in a decentralized manner (i.e., on hard drives and servers all over the world) so as to keep a single entity from gaining control of a network, but also the primary goal is to ensure that the same crypto token isn’t spent twice. In effect, “mining” is one means of making sure that cryptocurrency transactions are accurate and true, such that they can never be compromised in the future.
How cryptocurrency mining works
Cryptocurrency mining itself refers to a type of validation model known as “proof-of-work” (PoW). There are two common validation types, and we’ll look at the other, known as proof-of-stake, in a moment. In the PoW model — which bitcoin, Ethereum, Bitcoin Cash, and Litecoin use, to name a few — individuals, groups, or businesses compete with one another with high-powered computers to be the first to solve complex mathematical equations that are essentially part of the encryption mechanism. These equations correspond to a group of transactions, which is known as a block. The first individual, group, or business that solves these transactions, and in the process validates the accuracy of these transactions within a block, receives a “block reward.” A block reward is paid out as digital tokens of the currency that’s being validated.
What are miners role and rewards?
Cryptocurrency miners process and verify the transactions of the blockchain ecosystems and keep their public transaction history (meaning blockchains) maintained and secure. For this, the mining community is rewarded with the network’s transaction fees and newly created coins. It creates a win-win situation. This is not an easy task to embark on.
Why Choose Crypto Haven?
Reusable Proof Of Work
In 2004, computer scientist and cryptographic activist Hal Finney (Harold Thomas Finney II) introduced a system called RPoW, Reusable Proof Of Work. The system worked by receiving a non-exchangeable or a non-fungible Hashcash based proof of work token and in return created an RSA-signed token that could then be transferred from person to person.
RPoW solved the double spending problem by keeping the ownership of tokens registered on a trusted server that was designed to allow users throughout the world to verify its correctness and integrity in real time.
RPoW can be considered as an early prototype and a significant early step in the history of cryptocurrencies.
In late 2008 a white paper introducing a decentralized peer-to-peer electronic cash system — called Bitcoin — was posted to a cryptography mailing list by a person or group using the pseudonym Satoshi Nakamoto.
Based on the Hashcash proof of work algorithm, but rather than using a hardware trusted computing function like the RPoW, the double spending protection in Bitcoin was provided by a decentralized peer-to-peer protocol for tracking and verifying the transactions. In short, Bitcoins are “mined” for a reward using the proof-of-work mechanism by individual miners and then verified by the decentralized nodes in the network.
On the 3rd of January 2009, Bitcoin came to existence when the first bitcoin block was mined by Satoshi Nakamoto, which had a reward of 50 bitcoins. The first recipient of Bitcoin was Hal Finney, he received 10 bitcoins from Satoshi Nakamoto in the world’s first bitcoin transaction on 12 January 2009.
In 2013, Vitalik Buterin, a programmer and a co-founder of the Bitcoin Magazine stated that Bitcoin needed a scripting language for building decentralized applications. Failing to gain agreement in the community, Vitalik started the development of a new blockchain-based distributed computing platform, Ethereum, that featured a scripting functionality, called smart contracts.
Smart contracts are programs or scripts that are deployed and executed on the Ethereum blockchain, they can be used for example to make a transaction if certain conditions are met. Smart contracts are written in specific programming languages and compiled into bytecode, which a decentralized Turing-complete virtual machine, called the Ethereum virtual machine (EVM) can then read and execute.
Developers are also able to create and publish applications that run inside Ethereum blockchain. These applications are usually referred to as DApps (decentralized applications) and there are already hundreds of DApps running in the Ethereum blockchain, including social media platforms, gambling applications, and financial exchanges.
1. Crypto Haven is not a new setup they have been in existence for five years
2. Is servicing over 3.000.000 users in more than 1000 countries of the world.
3. Crypto Haven own 13 Mining facilities in 6 countries.
4. Crypto Haven support immediate payout coins earned will reflect in your wallet automatically.
In order to be able to mine Bitcoins in the current competitive scenario, one has to invest in specialized mining hardware and programs. These mining programs (software) are not directly related to the Bitcoin Core and are executed in parallel to try and mine Bitcoin blocks. A miner may choose to work alone (solo miner) or in groups (pool miner).