Wednesday, December 17, 2014

Overview of Mining

Simply put, mining is the process of using computer hardware to calculate hashes. Because
cryptocurrencies do not have central servers, their very existence depends upon miners facilitating the network. This process of mining helps propagate the transactions that take place on the network. Without miners, the network would cease to exist. As a result, the core protocol incentivizes the process by providing miners with a reward for their service. The reward, also known as the "block reward," is THE highly sought-after benefit of mining. Mining can be done on a processor (CPU,) video card (GPU,) or a high-efficiency miner (ASIC.)

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