Cryptomining

Definition - What does Cryptomining mean?

The practice of “cryptomining” or cryptocurrency mining involves adding various cryptocurrency transactions and evidence of mining work to the blockchain ledger. As a miner works to generate the block contents and algorithmic outputs that make up new blockchain transactions, they are said to be creating a new “coin” of a particular kind in the blockchain.

Techopedia explains Cryptomining

In cryptocurrency mining, the miner delivers the processing power to create new blockchain transactions that make up a particular block of content. Experts talk about the “hash rate” that is determined by the algorithmic functions that work on these raw text pieces to make them into hashes that can be easily stored. After a particular block of cryptocurrency is mined, the miner has to ensure the authenticity of information and update the blockchain.

In order to facilitate this process, miners recognize cryptocurrency mining reward structures that determine how this value is created through digital mining operations. While anybody can mine for cryptocurrency, the equipment and power requirements lead to centralized mining operations with the majority of bitcoin mining, for example, being located in China. However, as cryptocurrency becomes more popularized around the world, companies in local communities are offering mining equipment as part of a bigger cryptocurrency market that also includes things like bitcoin and crypto ATMs where average citizens can convert national currency to cryptocurrency values. All of this is fundamentally accomplished through the process of “mining” these intangible items through a data process.

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