Cryptocurrencies all work on the same principle: the Blockchain. They are a series of numbers saved on a computer in the form of chains or a series of blocks. The principle is quite simple:
Create a database. Allow anyone to make changes to that database under the condition to register as a “member”. Set up a very complex procedure of control. It must be carried out each time a “block” of changes is required. The procedure is carried out not by one controller but by the voluntary “members”. Once validated, the “blocks” of changes are added and dated along with others in the registry. Finally, allowing everyone to read the registry, you have a blockchain database”. And, it is up to the network (all the peers) to validate each transaction.
How is cryptocurrency made?
People who make cryptocurrency are called miners. They are said to be mining cryptocurrency. Miners make an integral part of the whole process. Without them, the Blockchain would be stuck. A miner confirms and validate the transactions that take place on the Blockchain.
To make a confirmation of the transaction, a miner must find the cryptographic function that connects the new block to its predecessor. This is called POW or proof of work. In exchange for their service (and the computing power mobilized), they obtain a reward in the form of tokens.
On the other hand, investing in cryptocurrencies is an easier way to go, starting by consulting the ICO calendar .
How to mine a cryptocurrency?
To mine a cryptocurrency, it is usually sufficient to install on your computer software using the graphic card and the processor, or even both, if you want to solve the cryptographic problem requiring a relatively large calculation power. It will allow you to touch on new units of the cryptocurrency in question.
However, be careful; the main crypto-currencies have become too difficult to mine for individuals alone.
The mining of many cryptocurrencies has become largely professionalized. It takes place partly in buildings of several thousand m2, farms, where tens of thousands of servers are running around the clock to mine cryptocurrencies (Bitcoin, Litecoin, etc.).
China once held a prominent place in crypto mining, but this industry has ceased to exist in the Middle Empire since the Chinese state banned mining or using crypto assets. However, in September 2019, 76% of the energy needed for Bitcoin mining in the world came from digital currency miners based in China, a share which has now collapsed to 0.
But the US share has jumped. , from 4% in September 2019 to 35% in August 2021. Another beneficiary of China’s withdrawal from this sector: Kazakhstan, with a share of energy dedicated to Bitcoin mining of 1.4% in September 2019 and which raises in August 2021 at 35%.
De to the competition from enormous buildings and farms, cloud mining solutions have been created. The best thing is that no investment in specific and costly hardware is required. What you have to do is to get in touch with the company that has invested in the necessary equipment and “hire” you. But beware, the scams are numerous!