The mining process of crypto coin involves the compilation of recent transactions to form blocks while trying to solve a computationally difficult puzzle. It adds more transactions to the blockchain and creates new bitcoin in the process.
The processes involved in setting up your computer for mining are;
Deciding on hardware
There are 2 things to put into consideration before picking out a hardware for use;
1. Harsh Rate : This is simply the amount of calculations your hardware can perform in a second as it tries to solve the computationally difficult puzzle. It is measured in megahashes(MH/sec), gigahashes (GH/sec) and terahashes(TH/sec).The faster your hardware is, the more likely you’re able to solve the puzzle and make more crypto coin.
2. Energy Consumption
Obviously, computing power sucks a lot of energy and this should be a factor when choosing a hardware, you can calculate how many hashes you get from a watt of electricity by dividing the hash count by the number of watts. For example, if you’re using a 500 GH/sec hardware and it’s taking 400 watts of power, then you’re getting 1.25GH/sec per watt.
There are 3 main hardware that can be used; GPUs, FPGAs and ASICs.
- GPUs/ CPU;This is found in our computers but is considered slow by modern standards.
- FPGAs; Field Programmable Gate Array is designed to be configured after being built which enables them buy the hardware in chips,customize them for mining and input it in their equipment. They are faster than CPUs.
- ASIC; Application Specific Integrated Circuits are specifically designed to mine crypto coins at a very high speed and with low power consumption. They are expensive and time constraints to produce but it’s worth it.
This is what instructs the hardware to do the work, passing through transaction blocks for it to solve. There are a variety of software depending on your operating system.
After setting all of these up, it is advisable to join a pool of miners to ensure steady flow of income. It is important to note that a mining pool should not exceed over 50% of hashing power as it may disrupt the whole network.