Having witnessed different types of questions asked within crypto communities in regards to the meaning of 'Mining' and 'Crypto Currency', hence it occurred to me to create this write-up to be as comprehensible and precise as possible...
INTRODUCTION
When talking about 'Mining' in the crypto world, we're not referring to the usual excavation of gold, diamonds, and other precious solid mineral materials deep down in the earth's crust. Here we're referring to a new and cryptographical process of creating digital currencies -- the currencies which has their own independent technology to initiate, process and complete transactions within their network without involvement of "governments" nor the popular monetary organisations known as "banks". Therefore in order to make it more comprehensible, I'm going to use the bitcoin mining ecosystem and its processing as an example to explain the definition/meaning of "Mining"...
As many people are already aware of bitcoin, that it is a grand crypto currency, the very first crypto which began back in 2008/09. However, what many aren't aware of is how it began, how it was processed, its treasury asset value, and the objective of it being created.
Before moving further.. A crypto currency is a type of digital asset or digital currency or digital money(all these phrases means the same), which is created using computer algorithms to solve an extremely complex mathematical problem.
The Objective of Crypto Currency Creation:
The main objective behind the creation of these crypto currencies is based on 'DECENTRALIZATION'. Cryptographically, Decentralization is a new system of processing payments between two parties without the need of intermediate monetary agencies.
The cryptographers(or developers of cryptocurrencies), after having experienced, studied and observed how intermediate monetary organisations systematically and unfairly incur charges on both individuals & corporate entities for transactions taking place; and how users experience limited power, accessibility & usability over their funds, hence these cryptos are created to give unlimited power, accessibility, usability, right and control to people over their rightful funds.
They are created to initiate decentralized transactions between two parties without a middleman. That is, transactions without an intermediary who would charge "Mr. A" a certain amount for exchanging transactions with "Mr. B" and vice-versa. Banks and Governments are the said intermediaries and aren't involved NOR needed before transactions are initiated, processed and completed in the crypto networks. This is possible because the crypto currency network has its own independent technology for processing transactions known as "BLOCKCHAIN".
The Bitcoin Mining Process:
As far as I understand it, back then when bitcoin mining began, people had to install the bitcoin mining software on their computer(or on as much computers as they could depending on how many computers you have and how much computer hash power you want to use to mine the bitcoin). The aim of this mining is to solve an extremely complex mathematical problem using computer algorithms as mentioned earlier, which in the process generates digital assets generally referred to as "coins" as rewards for the participants. So, each participant(i.e miner) will then configure the software, connect online to the bitcoin mining network, and start to mine continuously after the required setups.
In bitcoin mining, its mining figures involves around 10 numeral digits, with 1 whole number and 9 decimals (0.000 000 000). These numeral digits are usually referred to as 'Satoshis' or 'Sats'.
Upon initiating the mining process, these digits starts to read numerically and continuously from the first '0' decimal by the right upto '999 999 999(Nine Hundred and Ninety-nine Millions, Nine Hundred and Ninety-nine Thousands, Nine Hundred and Ninety-nine'. Upon reaching the mark of '1 000 000 000' - (One Billion Satoshis), then '1' whole bitcoin is produced. That is, the whole number -- i.e. the first individual '0' before the dot increases by '1'. And then the other 9 decimal digits all starts over again from zero upon every 1 Billion completion. So it goes on and on and 1 whole bitcoin is generated upon the mining mark of every '1 000 000 000 Satoshi' numerical readings.
The "Hash Power" Effect :
The mining rate depends on the miner's hash power. If the computer or miner's total hash power is good, the mining rate interval might increase in:
Tens or more(0.000000010, 0.000000020, 0.000000030, etc)
If the total hash power is better, the mining rate interval might increase in:
Hundreds or more(0.000000100, 0.000000200, 0.000000300, etc)
If the total hash power is even much greater, the mining rate interval might increase in:
Thosands or more(0.000001000, 0.000002000, 0.000003000, etc). So the mining rate depends on each miner's total hash power that the computer(s) reliably operates on.
These mining or readings are the earnings of each individual miner participating from different parts of the world, and the coin's earnings of these miners that were being mined and generated 'then' is the popular digital currency Bitcoins(BTC) that are being spent in circulation in the world today in the bitcoin network as the massively adopted digital currency. So this is the "mining" of cryptocurrencies. Do take note that each crypto's mining process might sightly or distinctly differ from one another depending on the many different protocols attached to their mining by their developers(hopefully an upcoming topic).
As at today, the free bitcoin mining opportunity is gone and no longer for the average individuals like it was back then, but it's now for mining corporations known as 'mining pools'. These 'mining pools' are mostly built by companies and are facilitated with a huge lot of money. This fact amongst other factors drives bitcoin's value incredibly and amazingly high!
Indeed, Bitcoin was a successful and breakthrough digital currency. Being the grand crypto, it has paved the way for thousands of newly emerging crypto currencies in the world today, some of which are listed below along with their operational status:
Pi Network - Started March, 2019(Undergoing Development, Download from your app store and use this invitation code to join : Ahis)
Bee Network - Started December 2020(Undergoing Development, Download from your app store and use this invitation code to join : Ahis)
TimeStope - Started August, 2020(Undergoing Development, Download from your app store and use this witness code to join : tcrypto(all lower case) )
Anonutopia - Started Recently/a while back(Undergoing Development, first install Telegram then click on this link to join: )
Midoin - Started on 2018(Undergoing.Development, Download from your app store and use this invitation code to join : Ahis )
Arrano Network - Started Recently(Undergoing Development)
Ethereum - ETH(Launched), Litecoin - LTC(Launched), Tron -TRX(Launched) And many others.. Beware! As there are also scam crypto projects out there!
Take note that, unlike bitcoin that requires having a computer, along with unlimited internet data and electrical power to 'mine' it, no costly investment on computers nor electricity is required to mine these mobile API enabled cryptos listed above, which are presently still undergoing development. All that is required to mine and earn their coins is to have an Android or iPhone to participate for free, without having to spend a dime!
To easily join other cryptos as highlighted on the list above or if you have any questions, do comment below or reach out to us on WhatsApp instead:
+234-8103519864
+234-8087000789
Since this whole system is new to most people, we are welcoming all to join any of our discussion platforms below so as not to be left behind in the revolution, simply click on any of the channels below to join our community:
⭕️✍By : Crypto Blogger, Enthusiast and Observer, Ahis.✍⭕️
Upcoming Topics :
"How each individual miner or owner has power over their digital assets/money(coins)"
"The effect of 'Hash Power' on mining the Cryptos on mobile and computers"
Stay Tuned!
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