Everything from high costs to security vulnerability can be mitigated.
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Crypto mining is the process of releasing cryptocurrencies into a network by completing a given set of mathematical computations. And just like any other mining industry — gold, data, etc.– it comes with a unique set of challenges.
For the uninitiated, cryptocurrencies are underpinned by a technology known as blockchain. Blockchains are digital ledgers that permanently store information. More precisely, they are strings of blocks containing verified data joined together by “hashes.” Hence, to create a blockchain, data has to be processed and verified. This is where crypto miners come in, verifying data and earning cryptocurrency rewards in return.
Originally, you could easily mine with your personal computers. However, this isn’t the case anymore, especially with an increase in the number of crypto miners. Theoretically, each crypto has its own “block time.” For Bitcoin, it takes about 10 minutes to mine a block, and for Ethereum, it takes about 20 seconds. With this in mind, it means single computers or PCs are disadvantaged. As such, miners are forced to adopt faster processors. To beat the heat of competition, many miners now adopt a special machine known as an application-specific integrated circuit (ASIC).
All in all, crypto mining can still be a readily profitable business venture, but it’s very important that you know the three major challenges crypto miners face and how they can be mitigated.
High Energy Costs
To maximize successful mining chances, you’d need to combine hundreds of ASICs together to solve one problem. Consequently, this would require extremely high power output, which…