Crypto Mining
Types of Cryptocurrency Mining
There are multiple types of cryptocurrency mining. These include, Cloud mining, ASIC mining GPU mining, CPU mining, Mobile mining, and others. Cloud mining is a process that uses a large remote data center which shares its processing power. ASIC mining, (ASIC = Application Specific Integrated Circuit) is a mining rig comprised of unique chips, motherboards, power supplies, etc which was designed with one sole purpose, . . . to mine for cryptocurrency according to a proof of work algorithm. GPU mining (GPU = Graphical Processing Unit) is a mining rig that uses the computational ability of graphics cards, to contribute to the block chain in a proof of work algorithm. CPU mining is an inefficient mining method that relies on a computer’s central processing unit for calculations, while mobile mining uses the power of a cell phone for its computations.
It Started with Bitcoin
Bitcoin (BTC) is the most popular cryptocurrency known throughout the world. After launching in 2009, it grew to be the world's first successful cryptocurrency (aka Crypto). Cryptocurrency is a digital asset that functions as an exchange medium between individuals without middlemen, like banks.
Cryptocurrency is based on a peer-to-peer cashless exchange of value. One of the critical advantages of cryptocurrency is secure decentralization, which resists the control of a central authority. This facilitates safe and seamless asset transfers between local and foreign entities, without government middlemen and without excessive risks of currency fluctuations.
In short, decentralized cryptocurrency allows people and businesses to safely move money around the world while at the same time mitigating risks of currency fluctuations, inflation, and control from a central authority.
Blockchains and Mining
Public ledgers, called blockchains, safely hold records of crypto transactions. A blockchain is a "chain" of linked transactional "blocks" of documents encrypted with cryptographical mathematical algorithms. The encryption occurs through a process called "mining."
A series of computer calculations anonymously records each transaction. Simultaneously, the blockchain controls the creation of new coins and verifies each transfer of ownership. Together, this process is called cryptocurrency "mining."
Things to Consider
There are many different cryptocurrencies, and they're not all mined the same way. When determining which type of currency to mine, one must consider things like longevity, relative decentralization, security, support, its particular use case, and how coins get distributed. There are many different cryptocurrencies from which to choose. Also, mining protocols differ between cryptocurrencies.
With Bitcoin, each completed block gets sent to each node on the chain for verification. It is so secure that it is nearly impossible to hack bitcoin's blockchain, a characteristic that adds to bitcoin's value. Computers compete to be the first to complete transactions, and the nodes with the most power usually win. Each person accessing the blockchain is considered a validator or node and receives a full copy of the entire blockchain.
One downside to bitcoin mining is that it is an energy hog. By some estimates, bitcoin mining consumes more than 40% of the world's energy production. Bitcoin is therefore not environmentally friendly.
Bitcoin: Not the Only Game in Town
There is little doubt that cryptocurrency is part of the world’s future. As various exchanges and central banks gear up for the new economy that’s currently on the horizon, different cryptos are created and adopted by nations, banks, and exchanges. Anyone can create a cryptocurrency if they understand the process.
Ripple (XRP), is another popular cryptocurrency, but it approaches transactional resolutions differently. XRP has a predetermined committee of miners who come to an agreement on transactions in mere seconds. The public does not participate in the mining process, although they have access to the XRP ledger. XRP, while decentralized, actually goes through a centralized blockchain as a way to increase the speed of its transactions. XRP has value as both a currency and as a utility.
Helium: The People’s Network
Yet another type of mining invites the public to participate in its blockchain. Helium (HNT) designed a cryptocurrency network called, “The People's Network”. This network is groundbreakingly unique within the cryptocurrency world. The vision behind Helium is birthed in creating a low-powered Internet network to service the modest connective needs of the Internet of Things (IoT).
IoT home instruments include refrigerators, lamps, televisions, thermostats, appliances, and more. You may also have seen the scooters and bikes for rent in most major cities. All of these machines need to transmit tiny amounts of data over the Internet. However, it isn't cost-effective to pay a monthly Internet subscription just for smart appliances. The Helium main-net lets these low-powered smart objects transmit their data via a network of wireless nodes.
Helium nodes are the system's network of hotspots. Each hotspot is partly a blockchain-mining device and partly a wireless Internet gateway for low-powered devices. Its network is decentralized, with users around the world participating in it. Users let others connect via their hotspot, which they either purchased, made, or hosted, to transmit tiny amounts of data over their wireless Internet.
Profitable Passive Income
In payment, those with 2HPM hotspots earn 20% - 50% of gross rewards in the form of HNT tokens. HNT itself has a value that fluctuates, but its value increases as the network grows and its use case increases. HNT crypto is exchangeable for US Dollars as well as other cryptocurrencies.
Operating a HNT hotspot mining device affords the host with a regular source of passive income that is projected to last up to 50 years. Once plugged in, making money with the Helium hotspot is entirely effortless with low costs to operate.
One of the best things about this extensive network currently underway is how little energy it consumes. Unlike Bitcoin, Helium consumes very little power. It typically costs less than 12 dollars to run a Helium hotspot for an entire year. Neither is the meager amount of wireless capacity consumed by smart devices enough to make a difference in the homeowner's high-powered devices' performance. Helium's low consumption of energy coupled with its rewards program makes it an attractive passive investment with a high return on investment (ROI).
Two-Fold Value
The value of the Helium network is two-fold. One is as an investment token and source of passive income. The other is it benefits the world’s community by identifying and correcting the inadequacies that currently exist in the IoT infrastructure. Industry experts predict that by the year 2025, there will be more than 40 billion devices connected. Helium's network is paving the way for this future with profits for those participating within it.
In the future, there will be more ways to mine various cryptocurrencies, as more currencies are created and find their niche within the new digital economy. Cryptocurrency is the new kid on the block, soon to be everyone's favorite, displacing fiat currency entirely. This is because the Federal Reserve inflates the amount of available fiat currency, causing each dollar's value to be less. As a non-inflated currency, crypto is not subject to loss of worth due to inflation.
Consensus Mechanisms: Proof of Work vs Proof of Stake vs Proof of Coverage
Proof of Work is based on an advanced mathematical algorithm that requires powerful computers and significant amounts of energy to solve equations. It uses these equations in this Proof of Work model to determine how blockchains reach consensus in a secure decentralized way.
Proof of Stake models, on the other hand, are based on a consensus mechanism that selects block chain validators in proportion to the amount of crypto coins they hold. Therefore, a validator must have a significant amount of crypto coins to be eligible for block chain validation. This reduces the risks of a malicious attack from untrusted validator sources who have minimal stake in the subject cryptocurrency.
Proof of Coverage is an algorithm on the Helium blockchain that uses radio waves to validate that hotspots are providing legitimate coverage all over the world from everyday people like you and me. With random consensus groups synchronizing with each other via radio waves, validation work and other tasks are completed with a high level of integrity, security, and legitimate wireless coverage.
There are multiple types of cryptocurrency mining. These include, Cloud mining, ASIC mining GPU mining, CPU mining, Mobile mining, and others. Cloud mining is a process that uses a large remote data center which shares its processing power. ASIC mining, (ASIC = Application Specific Integrated Circuit) is a mining rig comprised of unique chips, motherboards, power supplies, etc which was designed with one sole purpose, . . . to mine for cryptocurrency according to a proof of work algorithm. GPU mining (GPU = Graphical Processing Unit) is a mining rig that uses the computational ability of graphics cards, to contribute to the block chain in a proof of work algorithm. CPU mining is an inefficient mining method that relies on a computer’s central processing unit for calculations, while mobile mining uses the power of a cell phone for its computations.
It Started with Bitcoin
Bitcoin (BTC) is the most popular cryptocurrency known throughout the world. After launching in 2009, it grew to be the world's first successful cryptocurrency (aka Crypto). Cryptocurrency is a digital asset that functions as an exchange medium between individuals without middlemen, like banks.
Cryptocurrency is based on a peer-to-peer cashless exchange of value. One of the critical advantages of cryptocurrency is secure decentralization, which resists the control of a central authority. This facilitates safe and seamless asset transfers between local and foreign entities, without government middlemen and without excessive risks of currency fluctuations.
In short, decentralized cryptocurrency allows people and businesses to safely move money around the world while at the same time mitigating risks of currency fluctuations, inflation, and control from a central authority.
Blockchains and Mining
Public ledgers, called blockchains, safely hold records of crypto transactions. A blockchain is a "chain" of linked transactional "blocks" of documents encrypted with cryptographical mathematical algorithms. The encryption occurs through a process called "mining."
A series of computer calculations anonymously records each transaction. Simultaneously, the blockchain controls the creation of new coins and verifies each transfer of ownership. Together, this process is called cryptocurrency "mining."
Things to Consider
There are many different cryptocurrencies, and they're not all mined the same way. When determining which type of currency to mine, one must consider things like longevity, relative decentralization, security, support, its particular use case, and how coins get distributed. There are many different cryptocurrencies from which to choose. Also, mining protocols differ between cryptocurrencies.
With Bitcoin, each completed block gets sent to each node on the chain for verification. It is so secure that it is nearly impossible to hack bitcoin's blockchain, a characteristic that adds to bitcoin's value. Computers compete to be the first to complete transactions, and the nodes with the most power usually win. Each person accessing the blockchain is considered a validator or node and receives a full copy of the entire blockchain.
One downside to bitcoin mining is that it is an energy hog. By some estimates, bitcoin mining consumes more than 40% of the world's energy production. Bitcoin is therefore not environmentally friendly.
Bitcoin: Not the Only Game in Town
There is little doubt that cryptocurrency is part of the world’s future. As various exchanges and central banks gear up for the new economy that’s currently on the horizon, different cryptos are created and adopted by nations, banks, and exchanges. Anyone can create a cryptocurrency if they understand the process.
Ripple (XRP), is another popular cryptocurrency, but it approaches transactional resolutions differently. XRP has a predetermined committee of miners who come to an agreement on transactions in mere seconds. The public does not participate in the mining process, although they have access to the XRP ledger. XRP, while decentralized, actually goes through a centralized blockchain as a way to increase the speed of its transactions. XRP has value as both a currency and as a utility.
Helium: The People’s Network
Yet another type of mining invites the public to participate in its blockchain. Helium (HNT) designed a cryptocurrency network called, “The People's Network”. This network is groundbreakingly unique within the cryptocurrency world. The vision behind Helium is birthed in creating a low-powered Internet network to service the modest connective needs of the Internet of Things (IoT).
IoT home instruments include refrigerators, lamps, televisions, thermostats, appliances, and more. You may also have seen the scooters and bikes for rent in most major cities. All of these machines need to transmit tiny amounts of data over the Internet. However, it isn't cost-effective to pay a monthly Internet subscription just for smart appliances. The Helium main-net lets these low-powered smart objects transmit their data via a network of wireless nodes.
Helium nodes are the system's network of hotspots. Each hotspot is partly a blockchain-mining device and partly a wireless Internet gateway for low-powered devices. Its network is decentralized, with users around the world participating in it. Users let others connect via their hotspot, which they either purchased, made, or hosted, to transmit tiny amounts of data over their wireless Internet.
Profitable Passive Income
In payment, those with 2HPM hotspots earn 20% - 50% of gross rewards in the form of HNT tokens. HNT itself has a value that fluctuates, but its value increases as the network grows and its use case increases. HNT crypto is exchangeable for US Dollars as well as other cryptocurrencies.
Operating a HNT hotspot mining device affords the host with a regular source of passive income that is projected to last up to 50 years. Once plugged in, making money with the Helium hotspot is entirely effortless with low costs to operate.
One of the best things about this extensive network currently underway is how little energy it consumes. Unlike Bitcoin, Helium consumes very little power. It typically costs less than 12 dollars to run a Helium hotspot for an entire year. Neither is the meager amount of wireless capacity consumed by smart devices enough to make a difference in the homeowner's high-powered devices' performance. Helium's low consumption of energy coupled with its rewards program makes it an attractive passive investment with a high return on investment (ROI).
Two-Fold Value
The value of the Helium network is two-fold. One is as an investment token and source of passive income. The other is it benefits the world’s community by identifying and correcting the inadequacies that currently exist in the IoT infrastructure. Industry experts predict that by the year 2025, there will be more than 40 billion devices connected. Helium's network is paving the way for this future with profits for those participating within it.
In the future, there will be more ways to mine various cryptocurrencies, as more currencies are created and find their niche within the new digital economy. Cryptocurrency is the new kid on the block, soon to be everyone's favorite, displacing fiat currency entirely. This is because the Federal Reserve inflates the amount of available fiat currency, causing each dollar's value to be less. As a non-inflated currency, crypto is not subject to loss of worth due to inflation.
Consensus Mechanisms: Proof of Work vs Proof of Stake vs Proof of Coverage
Proof of Work is based on an advanced mathematical algorithm that requires powerful computers and significant amounts of energy to solve equations. It uses these equations in this Proof of Work model to determine how blockchains reach consensus in a secure decentralized way.
Proof of Stake models, on the other hand, are based on a consensus mechanism that selects block chain validators in proportion to the amount of crypto coins they hold. Therefore, a validator must have a significant amount of crypto coins to be eligible for block chain validation. This reduces the risks of a malicious attack from untrusted validator sources who have minimal stake in the subject cryptocurrency.
Proof of Coverage is an algorithm on the Helium blockchain that uses radio waves to validate that hotspots are providing legitimate coverage all over the world from everyday people like you and me. With random consensus groups synchronizing with each other via radio waves, validation work and other tasks are completed with a high level of integrity, security, and legitimate wireless coverage.