Why Crypto Mining is important in Blockchain Network?
Crypto mining is not just a way of making money. While many people are trying to make their way in the cryptocurrency industry, others are working on earning cryptocurrencies using specialized equipment and mining farms built from a large number of video cards. In this way they aim to provide themselves with a permanent source of additional or even basic income.
Aside from the earnings that the miner get. The most important is the role of mining in blockchain networks, miners have an important function in blockchain networks. They solve mathematical problems, open new blocks and approve other users’ transactions in the net. Miners save blockchains from block fraud and hacker attacks and guarantee the network’s decentralization.
Also, In the world of decentralized networks, unlike paper money, cryptocurrencies are built upon mathematical formulas and secure algorithms protected by cryptography. The indispensable actors within the decentralized structures are miners, who provide their computational power for the validation of each transaction taking place by the trade of cryptocurrencies. What do they do? Simple. Mining is a process of adding new transactions to the blockchain and generating coins using a certain amount of hash power. Backbone of the blockchains, miners are turning the wheel of a self governing structure which is decentralized and needs consensus of the participants. That brings the need of secure confirmation and coin oscillation which also happens to be a reward system for miners.
Bitcoin is better that traditional money
Consumers tend to trust printed currencies, at least in the United States. That’s because the U.S. dollar is backed by a central bank called the Federal Reserve. In addition to a host of other responsibilities, the Federal Reserve regulates the production of new money, and the federal government prosecutes the use of counterfeit currency. It is also essentially a form of output, specifically the issuing of new coins. But the main function of mining is different. The main function is to reach an agreement on the net on the basis of which transactions can be considered valid, so that none of the users can spend coins he or she has already spent in another transaction. That’s why receiving bitcoin is just a side effect of doing useful work, even though its usefulness is constantly being criticized by experts.
The energy consumption:
Hash power is the estimated number of tera hashes per second (trillions of hashes per second) the network performs. This rate increases as the total processor power operating in the network increases.
Graph 3 | Bitcoin Energy Consumption Index
- When the platform energy consumption is analyzed, it is seen that it is in a continuous upward trend. This situation can reduce the individual profitability as well as requiring the need to reduce energy costs for mining. That is why the choice of location of mining companies that will work high hash forces all day long is very important. They have transformed capital into the most effective investments with the mining facilities we have established around the world. The criteria we pay attention and the efficiency we provide will be examined in detail.
Crypto mining contracts:
Mining is based on the Proof-of-Work system, which allows for an agreement to be reached and transactions to be verified in a Blockchain network. The Proof-of-Work system was invented back in 1993, but received widely recognized application and popularity only in 2008 with the emergence of the first cryptocurrency — Bitcoin. The use of PoW at the core of the Bitcoin network provides reliable protection against 51% attack.
- No worries, Crypto Mining cloud services provide users with a secure infrastructure to dig their chosen coins for as long as they wish. Crypto Mining contracts are two years old. Users can track their daily return status from platform wallets during this period and withdraw their funds immediately after the commitment has been
filled. The platform offers coin and altcoin mining options working on 6 algorithms. Processors in mining facilities support all Bitcoin (SHA-256), Ethereum (Ethash), Dash (X11), Monero (CryptoNight) and Litecoin (Scrypt) algorithms. In the most basic terms, users subscribes to a package of their preference which includes hash power to dig coins encrypted with the selected algorithm, Bitcoin, Ethereum, Dash, ZCash, Monero and Litecoin, and their forked
altcoins. Cryptocurrencies with different encryption algorithms have different digging times, market supplies, prices and total caps. The user can distribute the purchased hash power to all coins and altcoins encrypted with the same algorithm. The privilege of managing digging for more than one algorithm from the same account has been offered to the user service as well.
Regardless of the package, all users can distribute the hash power between the algorithms and coins they wish. This flexibility is designed for users to maximize their returns. Two years secure contracts, with high return rates, along with the portfolio making feature in mining, distinguishes Crypto Mining from competing platforms.
Mining facility locations;
Many factors such as state-provided facilities, low costs and taxes, and ease of investment in crypto-friendly environments have affected our choice. For this reason, we concentrated our investments at the following points:
- State of Georgia
- Crypto Mining founders are lucky. Canada, where they took the first step of the company, offered the ideal conditions for crypto mining. North America and Canada are still one of the best places in the world for mining, thanks to low-cost electricity, cool temperatures, and high-speed internet. Crypto mining facilities are known for their high energy consumption and heat generation. For this reason, it is not a chance that the largest facilities were established in countries with cold climate and cheap electricity. Upon the advantages we saw at the first facility, we, as a company, made our growth through countries with similar characteristics. We were aware that area rental, environmental and climatic conditions, energy costs were the basis of a facility's success. So could we invest in all regions with these conditions? Of course no. So do they company invest in all regions with these conditions? Of course no. There are
other parameters to look at for this amount of long-term investment.
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