All you need to know about Bitcoin mining

Currencies has always been linked to a country’s wealth, and until a few years ago, no one would have believed that an entirely virtual currency would be made and used. The Bitcoin, as a totally decentralized currency, resolves several issues related to money in general, and brings new issues at the same time. Solutions has been found for some of them, such as for the question of its value; to meet the condition of scarcity, the total units of Bitcoin to be generated is limited to twenty one millions, and each unit is delivered through a process called mining.  

The Bitcoin has Hard fork such as Bitcoin cach. Let’s review the mining of  bitcoin cash.

The Bitcoin cash, a currency like you’ve never seen before

Unlike any usual money, you can’t send your Bitcoins directly to your bank account, and you need to convert it to currencies such as the US dollar before you can do so. It actually doesn’t meet the criteria to be considered as a normal currency, and this is where its strength resides. Indeed, it’s not possible for a government or banking institution to control your Bitcoin transactions, as everything is automatically managed by the blockchain system.

A blockchain is a series of blocks, which is a compilation of data related to every transaction that occurred between Bitcoin users. Whenever two persons make a transaction with Bitcoins, it’s recorded somewhere in the blockchain, and everything happens automatically without any third party involved. Thanks of Bitcoin, companies such as PayPal may become obsolete in the future, since third parties might not be required anymore for two people anywhere in the world to make a transaction.

The blockchain is stored on a cloud that is composed by every computer linked to the Peer to Peer network of the Bitcoin. Since it isn’t centralized on a specific server, once a transaction is made, it can’t be cancelled, modified or falsified. The release and production of Bitcoin units is also different from any normal currency, as it is based on a process called mining.

A Bitcoin block weights around 1Mo, and normally allows 3 transactions per minute. However, the number of transactions of Bitcoin drastically increased over time, and the process has been slowed down a lot. You may have to wait up to one week before your transaction is confirmed, and to this, the Bitcoin Company came up with solutions such as the Bitcoin Cash, whose block weights 8 Mo, therefore allows up to 24 transactions per seconds.

How does the Bitcoin cash mining work?

The mining basis is the Proof of Work, which implies that in order to generate bitcoins, a user have to find one of the twenty-one millions solutions to a very complex mathematical problem. Once he does, he’s rewarded with a few number of bitcoins unit. Of course, the user doesn’t seek for the solution himself, he lets his computer handle the required calculations. The more powerful your computer is, the faster it will be for it to find some of the existing answers.

At first, it was interesting for anyone to mine bitcoins, as you just need to install a specific software on your computer, link it to the internet and let it run. Actually, it has become more of a rude competition, and startups are even mounted just in order to mine bitcoins using very powerful computers. By yourself, it is now harder to compete with such companies, but thankfully you can join a guild of bitcoins miners. In those, people join the calculation capacities or their computer to find the solutions in a faster.

The level of difficulty of the problem to be solved is automatically adjusted, depending on the computing capacity available on the P2P network. Once a solution, a hash is generated, and it takes place on the blockchain; a block is released approximately every 10 minutes. The difficulty changes every 2016, so the Bitcoin units release remains steady.

The Bitcoin cash mining is identical the only difference will be the size blocs.

How to become a Bitcoin cash miner

The first requirement for Bitcoin cash mining is a powerful computer, and this implies its high consumption of electricity. Your computer must be optimized in a way that it can provide a high computing power, while consuming an optimal quantity of energy. The use of an efficient GPU is a good way to reach that goal, and you can take a look at the products of brands such as AMD, or nVidia. Since the trends in terms of informatics hardware evolve fast, you might find even more powerful components on a periodic basis.

You also might decide to acquire Field Programmable Gate Arrays (FGPA) for your computer; it’s an effective way to easily optimize its electricity consumption. Even if you intend to join a guild, you’d still be expected to meet some requirements in terms of computing power. If you join a guild and your computer isn’t as powerful as others, it wouldn’t be fair if you received the same share of Bitcoin reward equally as every member. Indeed, you would have “worked” less than the others.