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What is cryptocurrency mining?
29.08.2018
232Views

When you first hear about cryptocurrency mining, it’s hard not to picture crypto being dug out of the earth by miners with pickaxes and huge machinery. While cryptocurrency is not actually dug out of the earth, the mining metaphor is appropriate.

Crypto is brought into existence by digital “miners” expelling their energy, not unlike engineers figuring out how to best extract gold from the ground. In order to solve the complex cryptographic puzzles that are part and parcel of cryptocurrency programming. And while miners mine for crypto, they also validate transactions and include them in the blockchain. Thus mining crypto serves as the incentive for maintaining the blockchain.

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Mining EXCC

To further illustrate crypto mining, consider the following example of mining for EXCC. EXCC is the cryptocurrency behind the innovative exchanger known as xchange.me, the crypto exchange – Xult, and the decentralized exchange. A miner who wishes to mine for EXCC sets up his computer as a mining node by downloading the free EXCC mining software. Once this step is complete, the miner begins grouping outstanding transactions and adding them to the block. However, this is easier said than done, as miners need to solve complex cryptographic puzzles, submitting the answer to complete the block. The cryptographic puzzle is to find a number that, when combined with the data in the block and passed through a hash function, produces a result that is within a certain range.

Be successful miners

The number-answer to each cryptographic puzzle is found by guessing at random. The algorithm the crypto miners use to mine applies their results using the hash, combining the guessed number with the data in the block and eventually finding the solution. The first miner, or miners, as there may be several who find the answer at the same time, announce their success to the rest of the network. All other miners stop their work and begin solving the next puzzle. As a reward for their hard work, successful miners earn some newly created EXCC coins.

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