We will take you to learn the basics of mining in detail. However, at the bottom of this article,
I shall discuss the best free mining platform novelty that offers cryptocurrency enthusiasts an opportunity to mine a given token for free and with attached bonuse. So, let's start our discussion. Ready?
We already have a simple understanding of mining. Mining is actually an image metaphor.
Cryptocurrency mining is different from raw material or natural resources mining, so you don’t need to carry digger or spade anymore.
However, with cryptocurrency fetching you don't need a hoe to mine in a mine, rather, you are only expected to use a computer or mining equipment at home to start mining.
So, let's talk about mining cryptocurrency and the requisite knowledge in the rest of this article.
An Analogy of the Concept
We all know that fetching cryptocurrency requires mining it. A simple example will let everyone know what cryptocurrency mining is all about.
For example, when you are in school, you can get 5 little red flowers (the 5 red flowers here represents the cryptocurrency you earn for answering the teacher's question) by answering the teacher’s questions.
Then the teacher came up with a math problem on the chalk board; whoever can answer the right one may get these 5 little red flowers. So, X is the first to answer, and so, X can get these 5 small red flowers (this method is regarded as mining alone).
No, X couldn’t answer it alone, so he chose to hire other students from the group to answer it together (which is now a process known as mine).
The problem was too difficult, so X found a group of classmates who were out of school to assist in solving the problem. So the problem was divided it into proportions according to the degree of each person's problem solving (this is known as mining pool).
The above is a simple analogy (the mines and mining pools mentioned will be answered in detail in the follow-up articles), so what exactly is cryptocurrency mining?
Mining is the process of recording transactions and storing them permanently in the chain. Miners verify each new transaction and record them in the general ledger.
On average, a new block will be “mined” every 10 minutes. They are then included it in the block and are added to the blockchain.
The transaction on the above is called a “confirmed” transaction. After the transaction is “confirmed”, the new owner can spend the cryptocurrency he got in the transaction.
Miners receive two types of rewards during the mining process: new currency rewards for creating new blocks, and transaction fees for transactions contained in the blocks.
In order to obtain these rewards, miners rush to complete a mathematical puzzle based on cryptographic hashing algorithms.
The answers to these puzzles are included in the new block as a proof of the miner's computational workload, which is called PoW — Proof of Work.
Take Bitcoin as an example. Bitcoin is an application of blockchain technology. The blockchain is composed of many blocks.
Each block represents a bill. Connecting all blocks together is a block. After the chain, any transaction information and transfer records are recorded in the blockchain.
The mining code is constantly updated, which is equivalent to a treasure hunt. After a period, a random code will be generated on the Bitcoin system, and then all computers will search for this code.
Whoever finds it first can get it. Bitcoin is rewarded, and a block can also be obtained for accounting. To calculate this randomly generated code, a lot of CPU operations are required.
What is the Mechanism of Mining?
It is to determine the complex calculations that need to be run in cryptocurrency transactions. Miners use computers or mining machines to execute these calculations. The first miners are rewarded. This is the most fundamental mechanism of mining.
Let's also take Bitcoin as an example. Bitcoin is a key pair generated based on the mathematical elliptic curve encryption algorithm. The so-called Bitcoin is actually a long string of passwords.
The so-called Bitcoin mining is to constantly use passwords to solve and calculate the matching password.
Even if mining is completed, the elliptic curve encryption algorithm is an encryption algorithm based on the difficulty of calculating the discrete logarithm on the elliptic curve.
Another mechanism of Bitcoin is that the total amount is limited, which is about 21 million.
When Satoshi Nakamoto originally designed Bitcoin, it was stipulated that every 210,000 blocks are generated, the Bitcoin reward will be halved until the Bitcoin can no longer be subdivided.
Because Bitcoin, like gold, has a limited total amount. So Bitcoin is called digital gold, and Bitcoin production is also commonly called mining.
As Bitcoin continues to be mined, the number is constantly decreasing, but miners are constantly increasing, so the competition between miners is also extremely fierce, and the global computing power is also increasing, so there is not enough calculation. It is difficult to mine and succeed.
The Benefits and Risks of Mining
After understanding the basic mining knowledge, what is the profit of mining?
It can be calculated by a formula:
Mining revenue = generated cryptocurrency (such as Bitcoin, Ethereum, Litecoin, etc.) currency price — mining machine cost, electricity cost, maintenance cost and labor cost, depreciation cost, etc.
The reason why the risk of investing in mining is low is that in the bull market, the currency can be sold directly to cash out the legal currency, and in the bear market, you can wait for the currency price to rise.
In truth cryptocurrency mining is not an easy venture to take especially if you are a newbie in the industry or intends to kick start it with a very little capital investment amount.
Nevertheless, there are big corporations who are rearing up with their different token that they mine and only co-opt cryptocurrency enthusiasts to partake in their enterprise.
Some offer the partnerships to partakers at a token investment amount while some give it out entirely free.
Though most of these offers cannot be trusted, there are quite a number of them with reputation and with the clear intent not to defraud affiliates. One of the most trusted is Ronex.
Ronex offers a genuine mining platform 100c/o free for signed up members and as well gives a $20 bonus for registered members and a $40 worth of RX Coin you can use to mine on the platform.
At present, Ronex has scored a high reputation on the TrustPilot platform for its genuine standing. You can simply enjoin their offers now that it is up for takes by signing up on the Ronex platform before it closes its offer in December 2020.