Thousand B mining .. All you need to know about digital currencies

Digital science mining is a mystery for many people of wealth and mining (with the process that is documented by digital transactions on Blockchain networks – chain of blocks, compared to a financial bonus that is usually in the form of the digital currency itself as bitcoin.

The minerals use strong computer devices to solve complex mathematical issues to verify the authenticity of the operations and add them to the general record book of the series

Blockchain blocks series

Blockchain blocks or blockchain series is a distributed database consisting of interconnected blocks, and each block contains a set of verified transactions, and this technology guarantees transparency and safety where no block can be modified after adding it except with the approval of the majority of participants in the network.

The mining process is carried out using specialized devices known as “ASIC” – integrated circuits designated for the application) or via graphics cards (GPU – a strong graphics processing unit, and the metal also needs a mining program that manages the process of solving mathematical issues and connecting the device to the network, some metal prefer to join the mining pools, which are groups of minerals who share computer capacity And bonuses

Proof of Work work

Proof of Work is the system on which most major digital currencies such as bitcoin are dependent to ensure the safety of the network, and this system requires a large computer power spending to test the health of transactions, and this makes it difficult for any one party to control or manipulate the network

Revenue and costs

The metal gets a reward consisting of the new currency that is released with each block, in addition to the transactions fees paid by users, but these returns are matched by significant costs that include purchase, maintenance and electricity consumption, which is one of the most influencing factors on mining profitability, and the difficulty of mining increases over time, which reduces the return while keeping the costs remains fixed or high.

Legal and environmental aspects

The legal status of mining differs from one country to another. Some countries encourage mining as part of the digital economy, while other countries are prevented by security or environmental concerns, as mining raises controversy due to its high energy consumption and carbon emissions resulting from electricity production in some areas.

The digital currency mining represents the backbone of the blockchain networks that depend on proving work, and although it may be profitable, it needs major initial investments and understanding of local technology and laws, and with the continuous development in this field we may witness more efficient and friendly solutions in the future.