{"id":"mining","version":1,"language":"en","title":"Mining","hidden":false,"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$$widget0 [YOUTUBE@VID](8dAWgnmgcso)$$  \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$$widget0 [YOUTUBE@VID](kZXXDp0_R-w)$$  \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)  \n$$widget0 [YOUTUBE@VID](pWnN3WQ2m5M)$$","summary":"Cryptocurrency mining is validating and recording transactions on a blockchain network while creating new units of a specific cryptocurrency","categories":[{"id":"cryptocurrencies","title":"Cryptocurrencies"}],"promoted":0,"tags":[{"id":"Glossary"}],"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":"Qma5BPQEN93gDLLYcvz7QUJwBnXdZemZHygbPM8zU2fDQz"}],"user":{"id":"0x212Cb3F4aE6611054637f9f78F18fB628AD258bb"},"author":{"id":"0x212Cb3F4aE6611054637f9f78F18fB628AD258bb","profile":{"username":"zainab","avatar":"QmPabyQDLVgKZJN8NQF9EixdgWo3JvLn7gnAWdVkETgMyu"}},"media":[{"name":"8dAWgnmgcso","id":"https://www.youtube.com/watch?v=8dAWgnmgcso","size":"0","type":null,"source":"YOUTUBE"},{"name":"kZXXDp0_R-w","size":0,"id":"https://www.youtube.com/watch?v=kZXXDp0_R-w","source":"YOUTUBE"},{"name":"pWnN3WQ2m5M","size":0,"id":"https://www.youtube.com/watch?v=pWnN3WQ2m5M","source":"YOUTUBE"}],"views":32,"events":[],"ipfs":"QmaCK8S2wpaQNYp4jT79JxYG4WYBLb1gcv9atATUYE42dY","transactionHash":"0x669265927d3234f58490d55918da29a9b5ab708214d61718e203316921b3adfb","created":"2023-06-18T14:45:36.131Z","updated":"2023-06-18T14:45:36.131Z","images":[{"id":"QmbNjt5Abn18JkMDF9w4ye9y1dnxo8xND8ABJZ3CLKwwTd","type":"image/jpeg, image/png"}],"linkedWikis":null}