The transactions that we perform on the Blockchain must be verified by multiple computers. These code strings are sent (brodcastés) on Blockchain in group (called blocks) and must be decoded by a computer. A block to be decoded, ie, carved, and by extension: Mined.
Each duly performed operation is rewarded with a percentage of the transaction. This percentage is set by the payer and will depend on the amount sent and the desired recognition rate.
The mining presents an interesting financial. In addition, you take part in the good development of crypto. It can be very easy to set up a few machines to start to undermine home. The biggest problem will be finding the material, and even more complicated for a good price.
Each Crypto is encoded in a different language (an algorithm). There are mainly four major algorithms:
- SHA256 for Bitcoin and friends
- Cryptonight for the Monero and friends
- X11 for the Dash and his friends
- Ethash for Ethereum and friends
Note that some Cryptos CAN NOT be mined, such as Ripple. That said, once you have chosen what you want to undermine Crypto, we have to choose (and find!) Equipment.
There are three families of materials:
- the CPU
It is the processor of our computers, but are rarely used because they have too little return.
These are the graphics cards of our computers, depending on the model, it gets interesting.
- the ASIC
These processors specially designed and dedicated to mining, these are the best performers.
Each type of material has its preferred algorithm. ASICs are ideal for SHA256 and X11, while GPUs are for Cryptonight and Ethash. You will have to choose, then calculate your performance.
For a few more details, continue here: Blasting Part 1.