CryptoURANUS Economics: 08/08/18

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Wednesday, August 8, 2018

Mining Rig: Defined in CryptoCurrency

Mining Rig: Defined in CryptoCurrency


Mining rigs are defined as computer specially designed to maintain the blockchain, this process is known as mining.



Mining is the process of using computer power to solve a complex math problem, review and verify information, and create a new block so the information can be added to the blockchain.


Mining requires expensive mining and a lot computer power. People buy rigs and pay for lots of electricity so they can earn cryptocurrency. Because rigs are built especially for mining, they do the job faster than other computers and can earn more.

Mining Pool: Defined in CryptoCurrency

Mining Pool: Defined in CryptoCurrency


A mining pool is defined as a group of people who combine their computing power to solve a complex math problem on the blockchain for a reward.



People join a mining pool to increase their chances of solving the blockchain math problem so they can earn a reward of transaction fees and new coins. 


Once the reward is won, it is split among all of the members of the group. In a pool, you often win the reward frequently but because it is shared, the payout is smaller.

Mining Difficulty: Defined in CryptoCurrency

Mining Difficulty: Defined in CryptoCurrency

Mining difficulty is defined as a measure of how hard it is to maintain and add to the blockchain. 



With bitcoin, users are required to own a computer that runs the blockchain program and compete to solve a complex math problem. The first miner to solve this problem creates a new block and typically, this process happens every 10 minutes.


However, the more computers competing to solve the math problem, the quicker blocks will be discovered. To keep block creation at a fixed speed, every 2,016 blocks (every 2 weeks), mining difficulty is adjusted.

As mining difficulty increases, the amount of work required to create a new block and earn the reward increases.