{"id":"mining","title":"Mining","content":"**Cryptocurrency mining** is validating and recording transactions on a [blockchain](https://iq.wiki/wiki/blockchain) network while creating new units of a specific [cryptocurrency](https://iq.wiki/wiki/cryptocurrency). [\\[1\\]](#cite-id-u6gv1dr9jf7)​\n\n[YOUTUBE@VID](8dAWgnmgcso)\n\n## Overview\n\nCrypto mining involves using specialized computer hardware to solve complex mathematical puzzles or algorithms. Miners compete against each other to find the solution and validate a block of transactions. Once a miner successfully solves the puzzle, they add the block to the [blockchain](https://iq.wiki/wiki/blockchain) and are rewarded with a certain amount of crypto as an incentive. [\\[2\\]](#cite-id-hqhx6qxi8zb)​\n\nThe reward decreases transaction fees by creating a complementary incentive to contribute to the processing power of the network. Mining is measured by hash rate typically in TH/s.[\\[5\\]](#cite-id-1ymuunl6wm6)​\n\nSome miners pool resources, sharing their processing power over a network to split the reward equally, according to the amount of work they contributed to the probability of finding a block. A \"share\" is awarded to members of the mining pool who present a valid partial [proof-of-work.](https://iq.wiki/wiki/proof-of-work-pow)​\n\n### Mining Hardware\n\nTo participate in crypto mining, miners utilize powerful computer systems equipped with specialized mining hardware. In the early days of cryptocurrencies like [Bitcoin](https://iq.wiki/wiki/bitcoin), mining was possible using standard CPUs (central processing units) or GPUs (graphics processing units). However, as cryptocurrencies gained popularity and the mining difficulty increased, dedicated mining hardware called **ASICs** (Application-Specific Integrated Circuits) was developed. ASICs are highly efficient and designed specifically for mining cryptocurrencies like [Bitcoin](https://iq.wiki/wiki/bitcoin-btc), [Litecoin](https://iq.wiki/wiki/litecoin), etc. [\\[1\\]](#cite-id-u6gv1dr9jf7)​[\\[3\\]](#cite-id-blpr934mtho)​\n\n#### GPU Price Increase\n\nAn increase in cryptocurrency mining increased the demand for graphics cards (GPU) in 2017. The computing power of GPUs makes them well-suited to generating hashes. [\\[6\\]](#cite-id-vx0cehholm)​\n\n#### Mining Accelerator Chips\n\nMultiple companies have developed specialized crypto-mining accelerator chips, offering higher price-performance capabilities compared to CPU or GPU mining. Intel, at one point, introduced its crypto accelerator chip, called Blockscale. [\\[7\\]](#cite-id-7zvge5s0yh9)​\n\n[YOUTUBE@VID](kZXXDp0_R-w)\n\n### Mining Pools\n\nMining pools allow miners to combine their computational resources in order to increase their chances of finding and mining blocks on a blockchain. When a block is successfully mined, the rewards are distributed among the participants based on their contributed computing power. [\\[4\\]](#cite-id-xd1vhbbl7dt)​\n\n### Energy Consumption\n\nCrypto mining requires substantial computational power, which translates into high energy consumption. This has led to concerns about the environmental impact of mining, particularly for cryptos like [Bitcoin](https://iq.wiki/wiki/bitcoin). The energy consumption associated with mining has prompted discussions on the development of more energy-efficient mining technologies and the use of renewable energy sources to mitigate environmental concerns. [\\[4\\]](#cite-id-xd1vhbbl7dt)​\n\n### Mining Rewards\n\nMiners are rewarded for their computational efforts in the form of newly minted cryptocurrency and transaction fees. The specific reward structure varies among different cryptocurrencies. For [Bitcoin](https://iq.wiki/wiki/bitcoin), the reward is halved approximately every four years in an event known as **\"Bitcoin halving.\"** This mechanism is designed to control the inflation rate and ensure a limited supply of Bitcoin over time. [\\[2\\]](#cite-id-hqhx6qxi8zb)​","summary":"Cryptocurrency mining is validating and recording transactions on a blockchain network while creating new units of a specific cryptocurrency","images":[{"id":"QmbNjt5Abn18JkMDF9w4ye9y1dnxo8xND8ABJZ3CLKwwTd","type":"image/jpeg, image/png"}],"categories":[{"id":"glossary","title":"glossary"}],"tags":[],"media":[{"id":"https://www.youtube.com/watch?v=8dAWgnmgcso","size":"0","name":"8dAWgnmgcso","type":null,"source":"YOUTUBE"},{"id":"https://www.youtube.com/watch?v=kZXXDp0_R-w","size":"0","name":"kZXXDp0_R-w","type":null,"source":"YOUTUBE"},{"id":"https://www.youtube.com/watch?v=pWnN3WQ2m5M","size":"0","name":"pWnN3WQ2m5M","type":null,"source":"YOUTUBE"}],"metadata":[{"id":"references","value":"[{\"id\":\"u6gv1dr9jf7\",\"url\":\"https://www.webopedia.com/definitions/cryptocurrency-mining/\",\"description\":\"webopedia - mining\",\"timestamp\":1687096270585},{\"id\":\"hqhx6qxi8zb\",\"url\":\"https://coinmarketcap.com/alexandria/glossary/mining\",\"description\":\"alexandria - mining\",\"timestamp\":1687096695830},{\"id\":\"blpr934mtho\",\"url\":\"https://academy.binance.com/en/articles/what-is-crypto-mining-and-how-does-it-work\",\"description\":\"binance academy - mining\",\"timestamp\":1687097478574},{\"id\":\"xd1vhbbl7dt\",\"url\":\"https://freemanlaw.com/mining-explained-a-detailed-guide-on-how-cryptocurrency-mining-works/\",\"description\":\"freemanlaw.com - mining pools\",\"timestamp\":1687097674859},{\"id\":\"1ymuunl6wm6\",\"url\":\"https://books.google.com/books?id=HWJ6EAAAQBAJ&dq=Crypto+mining+th%2Fs&pg=PA222\",\"description\":\"book - crypto mining for dummies\",\"timestamp\":1690464016248},{\"id\":\"vx0cehholm\",\"url\":\"https://www.theverge.com/2018/1/30/16949550/bitcoin-graphics-cards-pc-prices-surge\",\"description\":\"theverge - gpu price surge\",\"timestamp\":1690464097273},{\"id\":\"7zvge5s0yh9\",\"url\":\"https://arstechnica.com/gadgets/2023/04/intel-introduced-bitcoin-mining-chips-a-year-ago-and-theyre-already-going-away/\",\"description\":\"intel - blockscale\",\"timestamp\":1690464262466}]"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmdVzeYC83VTcUe5doQ73R1rsthVJDwXnTqsDVRNzcqgUr\""},{"id":"commit-message","value":"\"Removed cryptocurrency mining article content\""},{"id":"previous_cid","value":"QmdVzeYC83VTcUe5doQ73R1rsthVJDwXnTqsDVRNzcqgUr"}],"events":[],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x212Cb3F4aE6611054637f9f78F18fB628AD258bb"},"operator":{"id":"0x1E23b34d3106F0C1c74D17f2Cd0F65cdb039b138"},"language":"en","version":1,"linkedWikis":{"blockchains":[],"founders":[],"speakers":[]},"recentActivity":"{\"items\":[{\"id\":\"49e01bcc-1da4-40a5-9658-8a6ffc05d575\",\"title\":\"Mining\",\"description\":\"Cryptocurrency mining is validating and recording transactions on a blockchain network while creating new units of a specific cryptocurrency\",\"timestamp\":\"2026-06-02T03:04:15.803Z\",\"category\":\"glossary\",\"status\":{\"icon\":\"RiGlobalLine\",\"label\":\"Wiki Updated\",\"iconClassName\":\"text-green-500\"},\"user\":{\"name\":\"0x212Cb3F4aE6611054637f9f78F18fB628AD258bb\",\"address\":\"0x1E23b34d3106F0C1c74D17f2Cd0F65cdb039b138\"},\"button\":{\"label\":\"View Summary\",\"icon\":\"RiFileTextLine\"},\"summarySections\":[{\"title\":\"Tags\",\"subtitle\":\"Tag list was updated: some tags removed, a tag added, and the final tags array set to empty.\",\"variant\":\"modified\",\"changeCount\":4,\"changes\":[\"Removed tag id 'cryptocurrencies' title 'Cryptocurrencies'\",\"Removed tag id 'Glossary'\",\"Added tag id 'glossary' title 'glossary'\",\"Final tags array is now empty\"]},{\"title\":\"Content\",\"subtitle\":\"Main article content was updated: a YouTube embed was removed and the content text/formatting was adjusted.\",\"variant\":\"modified\",\"changeCount\":2,\"changes\":[\"Removed YouTube embed [YOUTUBE@VID](pWnN3WQ2m5M) [[1]](#cite-id-u6gv1dr9jf7) [[2]](#cite-id-hqhx6qxi8zb) [[5]](#cite-id-1ymuunl6wm6) [[3]](#cite-id-blpr934mtho) [[6]](#cite-id-vx0cehholm) [[7]](#cite-id-7zvge5s0yh9) [[4]](#cite-id-xd1vhbbl7dt)\",\"Updated content text/formatting (minor whitespace and ordering changes compared to the previous version) [[1]](#cite-id-u6gv1dr9jf7) [[2]](#cite-id-hqhx6qxi8zb) [[5]](#cite-id-1ymuunl6wm6) [[3]](#cite-id-blpr934mtho) [[6]](#cite-id-vx0cehholm) [[7]](#cite-id-7zvge5s0yh9) [[4]](#cite-id-xd1vhbbl7dt)\"]},{\"title\":\"Metadata\",\"subtitle\":\"Various metadata fields were added or changed (size value types altered; new metadata entries added).\",\"variant\":\"modified\",\"changeCount\":6,\"changes\":[\"Changed 'size' from numeric 0 to string \\\"0\\\" (2 occurrences)\",\"Added 'type': null (2 occurrences)\",\"Added metadata 'words-changed' with value '3'\",\"Added metadata 'percent-changed' with value '0.18'\",\"Added metadata 'blocks-changed' with value 'content, tags, events'\",\"Added metadata 'wiki-score' with value '65'\"]}]}]}"}