What is cryptocurrency mining and what are its advantages

MINING is the method used by the bitcoin system and cryptocurrency generally (Monero, Litecoin, Ethereum) to issue and distribute digital money without a central bank or control, and without the opportunity to falsify money and create it at leisure.

The bitcoin network stores all the digital money transactions within data structures called “block”, and in order for blocks to be added to the chain (blockchain), i.e. the enormous public database containing all the transactions in a cryptocurrency, a processor has to “solve” it by finding a special code, which can only be found by brute force. This operation engraves the block “on stone”, preventing any future alterations, and whoever solves that code is recompensed with a certain amount of digital money, together with all the transaction commissions at that time, as an incentive for the service performed by the calculator (MINING RIG).

In jargon this operation is called MINING, which is derived from the parallelism Gold – bitcoin, formed of the miners who desperately sought gold nuggets in the rock.

Mining decentralisation

When the first bitcoin network was designed, its inventor was faced with the problem of how to issue a new currency in order for it to be efficiently distributed among the world population.

The solution was to design a system so that it issued cryptocurrency as a bonus to the network components that supply processing power, which is needed to boost the network. To work correctly and avoid problems in the financial transaction, the network used for cryptocurrency exchange needs multiple copies of the blockchain (public register of unalterable transactions) and numerous calculators that are decentralized and dedicated to validating the exchange transactions.

The more decentralized a digital payment network is, the better the new cryptocurrency issued is adequately distributed among the population, and the safer the network is as well.

Present and future potential of cryptocurrency

There is extensive potential for this new digital currency and, as it is easy to foresee, in one way or another it is definitely the future of money (also part of the present), for whoever wants to buy or sell services and products with this new revolutionary payment method.

To give a visual image of cryptocurrency, we can image digital safes full of securities and transferables, like an email in the internet.

The more decentralized and powerful the mining network is, the more secure the safes will be and, therefore, the greater value they can safely hold.

What are Mining Rigs and how do they work?

Mining Rigs are optimised processors for POW (proof of work) type mining. The name of MINING RIG used for these calculators is derived from the parallelism with the typical gold and oil mining rigs. When these processors are sufficiently powerful with GPU (video board) units optimized for the process, they enable noteworthy calculation results and therefore to obtain an economically profitable mining system.

The advantages of Mining Rigs built with the BITMINE RIG-V6 frame is that they are able to use numerous GPUs connected to a single Motherboard, and therefore able to perform numerous parallel calculations and reduce the final cost of the digital mining rig, making it economically more viable.