Crypto Currency Mining

What is crypto currency mining?

Recently, cryptocurrency and bitcoins have gained rapid traction in the Business market and are the town’s talk. You might have heard mining with cryptocurrency many times and must be pondering over what it means.

In digital money, cryptocurrency mining refers to verifying and assembling new transactions on a blockchain. It is usually done by solving long cryptographic equations and earning cryptocurrency with the help of a computer.

How does cryptocurrency mining function?

Experts in the crypto world known as miners are dedicated to solving cryptographic equations and puzzles. They add a new block to a blockchain using a considerable amount of computational powers and GPU.

Miners use encryption to ensure that the block they created is safe to share across the web. Once the block is encrypted and is safely shared, the miners are rewarded with Bitcoins or other cryptocurrencies for their work.

Upon verification of the new blocks, miners can successfully add new chains to the existing blocks.

According to one statistic of June 2020, there are now over 1,000,000 unique miners.

Mining Pools:

Some miners lack the sufficient computational power or the requisite digital pieces of equipment toine a block and earn. Therefore, various Mining Pools have come into being that help the miners to collaborate with them. They share the earnings equally according to the amount of work miners have contributed to finding a block. Mining Pools provide the miners with their computational resources to verify a block further and continue their successful mining for cryptocurrency.

However, mining pools are often criticized over concentrating powers on the mining owners and promoting centralization rather than decentralization.

New in Market:

There are various latest crypto currency-mining options available in the market. Let’s take a look at them:

  •   Mooncoin

Mooncoin is a unique and relatively new crypto-currency mining. According to the records, at every 1.5 minutes, a moon coin block is mined. As of press time, the moon coin was being traded for $0.00000953.

Mooncoin represents one millimeter of the distance between Earth and Moon. Mooncoin can be mined using ASIC. ASIC is a mining rig machine designed to mine a particular cryptocurrency. ASIC is power-consuming but gives the best results when it comes to Mooncoin mining. 

To become a Mooncoin miner, you can install MinerGate from the play store or join a miner pool. To calculate your profits, you can check Mooncoin profitability charts.  You may also know: Historical Spy Cameras

  •   Sweatcoin

 Sweatcoin is a healthcare app that rewards you with sweatcoins on the number of steps you walk. What you have to do is download the app and start walking. You are rewarded with 0.95 sweatcoins for every 1000 steps you take. After earning a sufficient amount of sweatcoins, you can get them exchanged for rewards such as fitness products, restaurant discounts, or holiday vouchers. You can even win exciting prizes like an iPhone or Apple watches etc., for 20,000 sweatcoins. 

Impact on the current crypto climate:

Cryptocurrency mining has recently stirred a controversy that it is highly power consuming and the electricity comes from the pollution of resources. According to a CCAF team survey, people who manage cryptocurrency networks degrade fossil fuels for energy consumption. New cryptocurrency mining like Mooncoin, which uses ASIS- a high power consuming machine can worsen crypto climatic situations.

However, applications like sweatcoin which is relatively less profitable but less energy-consuming as they have not yet become tokenized, perhaps applications such as these that demand success before becoming a crypto currency can improve the crypto climate.

NFT (NON- FUNGIBLE TOKEN)

What is NFT?

A NFT “Non- Fungible Token” is a unique, not interchangeable item of data referred to as a blockchain. It may represent digital files such as videos, art, audios, and video games. The first form of NFTs were based on Ethereum and introduced in 2015. The rapidly increasing interest in the market for NFTs has caused an increase in speculation, due to an increase in the investors who began trading NFTs in large volumes who had previously speculated on cryptocurrencies.

 

NFTs are similar to cryptocurrencies such as bitcoin. They are verified through a decentralized program of nodes through a consensus protocol and identified individually. Nevertheless, the NFTs are different from cryptocurrencies as they are “non-fungible”, indivisible, and unique. NFTs are unique as each and every piece of content is connected to a token stored in a smart contract. Only one individual can take ownership of a specific token.

 

Why are people spending massive sums on NFTs?

People who buy NFTs view their purchase as a medium to support their favorite actors, artists, athletes, and musicians. Although there have been few expensive sales recently, most NFT sales occur at a reasonable price that facilitates creators to make money out of their work. Just as collectors of different products such as baseball cards, antiques etc. NFT collectors hope that their purchase will increase in value and will thus act as a viable investment option.

Key characteristics of NFTs:

Indivisible: NFTs cannot be broken down into smaller constituents unlike bitcoin satoshis. They are thus indivisible and exist as a single item.

Indestructible: Since all NFT data is stored through contracts on the blockchain, each NFT token cannot be replicated, destroyed, or removed. Gamers and collectors have the possession of their NFTs, not the firms that manufacture them. This differs from purchasing items such as music from the iTunes where purchases do not actually have ownership of their purchase, they just own the license to listen to songs.

Verifiable: Another advantage of storing data on the blockchain is the fact that goods such as digital artwork can be linked back to their original manufacturer. This allows authentication of pieces without the requirement of verification by a third party.

Why are NFTs important?

NFTs have modified the areas of gaming and collectibles to a huge extent which is the reason for their popularity among firms and people who use crypto. Due to the introduction of blockchain technology, gamers have become the owners of in-game products and are able to monetize them.

For artists, the ability to sell their artwork digitally to buyers globally without the requirement of a gallery allows them to be cost efficient and maximize their profits from sales. Royalties can also be converted into digital artwork which allows the creator to receive a portion of profits from sales every time their art is purchased by a new person. William Shatner, the famous Captain Kirk from “Star Trek,” launched 90,000 digital cards on the blockchain portraying several pictures of himself. Each card was in the beginning sold for about $1 and now it provides him with royalty income upon every resold.

The Future of Cryptocurrency – valid as worldwide currency?

The US OCC opens up to the Blockchain

Earlier this month, the Office of the Comptroller of the Currency (OCC) of the United States issued the interpretative letter 1174, addressing whether US national banks and federal savings associations could use independent node verification networks (INVN – that is, blockchains) and stablecoins for payment activity.

And it was favorable.

This is basically recognition that cryptocurrencies are a valid form of currency, even if it is limited to stablecoins, and that blockchains are a valid form of ledger. I mean, if US banks are free to use it, why can’t we?

Of course, it is no surprise that the letter focuses on stablecoins. Stablecoins, as the name implies, are cryptocurrencies designed to have a more stable price. Although they aren’t as fun as less regulated coins such as Bitcoin (which just reached the 35k mark), they are more likely to enter wide circulation in the near future because you could use it to order a pizza without wondering whether its price grew by a thousand again in the last week.

So, what will this mean for the future of cryptocurrency?

Adoption of the blockchain

This means that US banks may now adopt blockchain technology into their ledgers and services. Although we can’t really expect this to happen any time soon, especially in the bigger banks – as overhauling an entire bank system is prohibitively expensive, time consuming and risky – newer, more daring banks and fintechs can take great advantage of it.

This also means, of course, much more investment into the technology, especially by bigger players. Just because the major US banks won’t adopt it entirely in the near future, that doesn’t mean they can’t find some use for it. After all, it is an inherently secure financial technology, and adopting it, even if partially, may mean less need to invest in cybersecurity. Using money to spend less money. Read more articles: Cybersecurity 

Adoption of stablecoins

This could also mean that US banks may give support to stablecoins in the future. Which could also mean that storing your coins in a bank may become much safer.

As the cryptocurrency world is currently unregulated – and many cryptocurrencies want it to stay that way – there are always risks involved, like the famous Mt. Gox scandal showed quite clearly, as well as foreign powers taking over the coins, as China managed to do with Bitcoin. It is a high-risk, very-high-reward investment, but only if you know what you are doing.

Banks providing support to stablecoins in the same way as they provide for the dollar would give much more security to the coins, which would make them even more stable. On the other hand, it is also to be expected that they would be under more regulation, as banks have their own laws and procedures to follow.

Creation of new coins

This could also lead to the development of new coins by the major US banks, as well as US entrepreneurs, especially by use of ICOs in order to finance many kinds of enterprises.

Most notably, it could enable banks to develop their own stablecoins, for many different purposes. For example, they could be an internal “fake” coin used to represent the dollar in digital transactions using blockchain. There could also be an optional, separate coin used for digital-only transactions between people who have accounts in the same bank.

This could give more room for cryptocurrencies created by American companies to grow in American soil. For example, Diem (previously named Libra), a cryptocurrency being developed by Facebook which is bound to be released this year, could greatly benefit from it, by gaining more legitimacy within the traditional financial world using Facebook’s financial leverage.

That could, however, also mean that independent coins will get less space in the mainstream world. On the other hand, this may be the American way of dealing with the Chinese monopoly on Bitcoin mining and China’s announcement that they would release their own digital currency.

We will have to wait and see how this goes.