Background on BTC Mining
Fundamentally, Bitcoin mining is an activity which adds Bitcoin transactions to the blockchain ledger. The process of mining is referred to as proof of work. Bitcoin mining creates proof of work by solving mathematical problems to create hashes.
For a miner to verify a transaction, they must first calculate a 64-digit hexadecimal hash. This hash is used to identify one unique transaction on the Bitcoin blockchain.
To get credit for mining, you must be the first to meet the target hash. The more miners who are actively competing to predict hashes, the lower the chances of success.
To compete, miners use CPU power with connected, specialized circuit chips from application specific integrated circuits, also called (ASIC) mining hardware.
Debuted in 2013, the pioneers of ASIC hardware created devices specially intended to perform the computations required for mining cryptocurrency. The energy-efficient circuit chips are currently the premier hardware for Bitcoin miners.
Mining is considered an inclusive backend activity, yet the introduction of high-quality ASIC hardware has made it challenging for those who are unable to invest in equipment worth thousands of dollars. On top of the upfront cost of ASIC hardware, the chips use a large number of kilowatts to make computations.
Source: ICO Alert
