Cryptocurrency mining: what does it mean?

Posted by John Smith on February 5th, 2022

This answer actually encompasses many myths that exist around the subject. Mining cryptocurrencies with Antminer D7 is not finding, discovering, or manufacturing new coins, but rather the set of processes necessary to validate and process the transactions of a cryptocurrency.
 
In the case of Bitcoin, mining consists of validating and recording transactions on the blockchain. For this, all the nodes of the network participate in the successful resolution of the puzzle that the search for the block supposes, where, taking into account a random number and applying a cryptographic function, a hash is found that meets a characteristic: that it has some number of leading zeros. 
 
This work requires effort and computing power, which ensures that it is complex to write new transaction blocks to the registry and thus prevent an attacker from generating a fake block and adding it to the network or modifying an existing block.
 
Not all cryptocurrencies work in the same way, since the way of mining with BitmainAntminer D7 depends on the system used by the blockchain or the algorithm of each cryptocurrency. 
 
However, they all have one thing in common: miners do not perform useless operations, rather they are necessary to maintain network stability and security. Since their work is so important, miners get paid a certain amount of money for their mining work. 
 
In the case of bitcoin, for example, every time a miner finds a valid block he is rewarded with 12.5 Bitcoins. The payment is made with coins that are in reserve and at that moment they enter circulation, which is why it is often mistakenly believed that cryptocurrency mining consists of generating new coins. 
 
The coins are already previously defined, however, through mining, new coins are brought into circulation.
 
Is mining cryptocurrencies profitable?
 
Although Bitcoin is the first and most popular cryptocurrency, there are currently more than 100 alternatives, also known as Altcoins.
 
Each of these coins has its own algorithms and mining costs. In many of them, it is possible to participate only with a good graphics card. These work very well to solve mathematical calculations or even with a traditional computer.