Everything about crypto mining
Introduction to GPU Cryptomining
Learn step by step how you can start generating passive income
What is mining and how can you passively earn money with crypto mining? In this article we explain it all to you.
With the rise of cryptocurrencies, a new type of database, also called a “blockchain”, in which all kinds of data can be stored. These can be transactions, such as payments with a digital currency, but also other important data that is exchanged between two parties, such as contracts, diplomas or title deeds.
All these transactions have in common that they are converted into blocks of digital information that are digitally “signed” by two parties. Because this exchange of data takes place without the intervention of a third party, such as a bank, a new way of checking is required.
What is Crypto Mining?
This form of control is also known as crypto mining. Mining is validating transactions on a blockchain. Validating these transactions requires a computer that can calculate whether the transactions are correct. Each transaction is verified several times by random computers. When a transaction has been sufficiently verified, a new block of information is added to the blockchain. As a reward for adding this block of information, the computers are paid with crypto currency.
What is a Blockchain?
A blockchain is a database in which transactions are stored, with all information encrypted using a technique called cryptography . Here comes the term crypto currency from for transactions with digital means of payment that use blockchain technology.
How does a blockchain work?
Within the blockchain, a transaction is converted into a block of information that is signed by two parties. This block of information is verified by cryptominers. Only after the block of information has been validated will it be added to the blockchain. The most recent block always contains information about the last transaction, but also information about all previous transactions. This creates a long, unchangeable and uncrackable chain of information. Since the last block always contains information from all previous blocks, more and more computing power is needed to verify the next block of information. Verifying a block of information – so that it can be added to the blockchain – is also known as “hashing” mentioned.
What is Hashrate?
To add a block to a blockchain, a computer must first find the most current transactions that still need to be verified. When a computer finds it, the computer can verify the transactions and add them to the blockchain. When this is successful, the computer is rewarded for providing the computational power needed to verify this transaction. Since the last block in the blockchain contains information from all previous blocks, the computational difficulty increases over time for a computer.
The “hashing power” of a computer is the computational power that a computer has to solve calculations. The amount of calculations that a computer can make with the computing power that a computer has is also expressed in “ hashes per second“, or hashrate, H/s.
- 1 kH/s is 1,000 hashes per second
- 1 MH/s is 1,000,000 hashes per second
- 1 GH/s is 1,000,000,000 hashes per second
- 1 TH/s is 1,000,000,000,000 hashes per second
- 1 PH/s is 1,000,000,000,000,000 hashes per second
The more calculations a computer can make, the greater the chance that a computer can verify the transactions in a blockchain and receive a reward for doing so. These rewards can amount to hundreds of thousands of euros per block. For this reason, computers often work together in a so-called “ mining pool”, in which computers combine their computing power to solve a block faster. The reward is then distributed among all computers.
Where to start with cryptomines?
The most important thing for cryptomins is the hashrate of a computer. The higher the hash rate, the greater the chance that a computer can add a block to a blockchain.
In GPU Mining, a computer’s hashrate is determined by its video card, where the more video cards are connected and the better quality these video cards are, the higher a computer’s final hashrate is.
Heb je geen idee hoeveel hashrate je nodig hebt en hoeveel je hiermee kan verdienen? Dat is geen probleem, want bij Miners Nederland hebben wij bij onze standaard modellen GPU Miners de winst alvast voor je uitgerekend. Bij aanschaf van een GPU Miner, brengen wij de miner bij je thuis, sluiten we de miner aan en stellen we deze af op de meest rendabele mining pool. Het enige wat jij hoeft te doen is de computer aan laten staan en toekijken hoe het geld binnenstroomt.
Ben je nieuwsgierig geworden? Klik hier om te zien hoeveel onze cryptominers per maand aan passief inkomen genereren.