What is virtual currency, who are miners, and why do they buy video cards?

Mining (from the English mining - mining) earnings of cryptocurrency due to the capacity of the equipment.


People who are engaged in this activity are called miners, they use the power of personal computers or specialized farms to earn money. The equipment works with hashing, selecting it for transactions that are in the system. Hashing means entering information of any length and size in the original string and returning the result of a fixed length given by the hash function algorithm. In the context of cryptocurrencies such as Bitcoin, transactions after hashing at the output look like a set of characters of a length determined by the algorithm.

The process of mining cryptocurrency is quite entertaining. The equipment of the participants in the "digital race" searches for a certain number from a huge array of information. These are not some abstract tasks, but in particular confirmation of transactions (transfers) of funds within the system. These tasks are formed into blocks. Decryption of information in the block is carried out by the selection method - for this, the system needs such gigantic computing power. The miner himself, even if he has large hardware capacities, cannot find such a number.

That is why single systems are combined into mining pools, which are a server that distributes the tasks of finding the number among all participants. In this system, everything is very transparent and understandable. You can track absolutely any transaction. The only information that remains hidden from prying eyes is the data of wallet owners.

To begin with, you should draw up a detailed business plan, the key point of which will be electricity. This resource largely determines the economic benefits of the process. Also, if you want to install a whole farm, then you need to solve the issue of soundproofing and cooling, because without this the equipment will quickly become unusable. Accordingly, there must be a large area. This is true if you want to start mining immediately in large volumes. At home, a video card is enough. However, the choice must be approached with all seriousness and awareness. You will need to buy exactly the equipment that will guarantee the greatest efficiency at the lowest maintenance costs. It is also worth choosing equipment that will be technically "too tough" - after all, it must be regularly monitored for smooth operation.

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