Bitcoin and cryptocurrency mining can be done in several ways, each of which has advantages and disadvantages. But no matter what type of mining you choose, some crypto mining terminologies are important to know so you can get started as quickly as possible and avoid getting scammed by others. Here’s a quick overview of the most basic terms so you can better understand the lingo.
A 51% attack is a potential attack on the Bitcoin network whereby an organization is able to control more than 50% of the network’s mining power. This would allow them to double-spend coins, prevent certain transactions from being confirmed, and more. While this type of attack is certainly possible, it is unlikely, given the current distribution of mining power.
A hard fork is a radical change to the protocol of a blockchain that makes previously invalid blocks/transactions valid (or vice-versa). A hard fork requires all nodes or users to upgrade to the new version of the protocol software. Put simply, a hard fork is a permanent divergence from the previous version of the blockchain, and the newest version will no longer accept nodes running previous versions.
There are two main factors that affect hash rate: the speed of your computer’s CPU/GPU and the mining software you are using.
This is a measure of how quickly your computer can process data from the blockchain and is typically measured in hashes per second. The higher your hashing power, the more likely you find a block and earn rewards.
The mining difficulty is a measure of how difficult it is to find a hash below a given target. The difficulty is adjusted periodically as more miners join the network or drop off, and the network hash rate grows or shrinks. The Bitcoin network has a global block difficulty. Valid blocks must have a hash below this target.
Proof of Work (PoW)
PoW is the most common consensus algorithm in cryptocurrency. It is used in Bitcoin, Ethereum, Litecoin, and many other coins. PoW works by having miners compete against each other to solve complex math problems. The first miner to solve the problem gets to add the next block of transactions to the blockchain and receives a reward in the form of cryptocurrency. The more miners there are, the more difficult the math problem becomes.
PoS (Proof of Stake)
PoS is a consensus algorithm that allows a person to mine or validate block transactions according to how many coins they own or stake. The more coins you own, the more mining power you have. PoS is different from PoW (Proof of Work) because it doesn’t require miners to use their computational power to solve complex math problems.
SHA-256 is a cryptographic hash function that takes an input of any size and produces an output of 256 bits. It’s used in many cryptographic applications, including digital signatures and message authentication codes. In Bitcoin, SHA-256 is used for mining new blocks and verifying transactions.
In conclusion, it is probably going to be more profitable to mine CPU-based coins such as $WHIVE. The Whive protocol allows you to mine with any device, including android phones using the Yespower algorithm.
It is better to mine coins before they go mainstream and are discovered so you can benefit from price appreciation. A good coin to look at for mining is the Whive Protocol.