Mining News

Cryptocurrency mining is an important step in the validation and processing of transactions within a blockchain network. Most commonly associated with Bitcoin, mining is ubiquitous to every proof-of-work (PoW) protocol. In PoW protocols, ‘blocks’ represent a number of transactions bundled together, which must be validated by miners before it can become part of the blockchain. Proof-of-work is a consensus mechanism, which ensures all node operators, or miners, agree on a single version of a blockchains’ history.

Essentially, miners use high-powered computers, called ASICs, to solve a difficult computational problem which validates a block. Miners are competing to be the first one to solve this cryptographic problem, and when they do so, they receive a ‘block reward’ – a bounty paid in the native token of that protocol. Block rewards can be highly lucrative, especially in the Bitcoin network, and as such many commercial operations have been established to mine BTC.

Because mining is so difficult, and the chance of a single machine validating a block is low. Therefore, miners either invest in multiple ASICs in large scale mining operations or group together and share the block rewards if that group validates a block. At its height in 2017, Bitmain, one of the largest mining groups that also manufactures its own ASICs, had an enormous 25,000 machines, using $39,000 worth of electricity to power them per day.

Bitcoin block rewards undergo a process known as ‘halving.’ This is because Bitcoin is a deflationary currency, with a fixed and finite supply of 21 million. For every 210,000 blocks which are processed, the Bitcoin network undergoes a halving. In 2020, the block reward will halve to 6.25 BTC. This makes BTC more scarce over time, but it also increases the mining difficulty. Each PoW blockchain network will have a similar permutation of this setup and block rewards.

Mining can be a complicated subject, and it’s constantly changing. Stay up to date on Mining with [blokt], the leader in cutting-edge cryptocurrency news. We are at the forefront of blockchain technology, bringing you the latest developments daily.


Why Coinbase-backed Startup Coinmine’s New Mining Rig May Not Be a...

Despite the current low prices of cryptos, a new cryptocurrency mining device has just been launched by Coinmine, a startup that is backed by...

Nvidia Shares Fall 19% After Company Reveals Q4 Revenue Might Fall...

Even without directly investing in cryptocurrencies, Nvidia was one of the biggest winners in 2017’s crypto boom. With last year’s soaring prices of digital...

Bitfury Mining Company Planning an IPO, and a Potential $3 Billion...

Bloomberg reported on Oct. 25th that Bitfury, one of the largest cryptocurrency mining companies in Europe is considering to go public and if it does...

Cobo Vault Set for International Expansion, Offers Built-in PoS Mining Rewards...

With the number of cryptocurrency wallets currently available for crypto investors, it’s getting harder for start-ups to stand out from the rest of the...

Chinese-Based ASIC Chip Maker Bitmain Bracing for Tough Times Ahead as...

The South China Morning Post reported on Oct. 16 that Bitmain, the world’s largest manufacturer of cryptocurrency mining hardware, is bracing for tough times as...

Crypto Mining Not as Profitable Anymore: New Diar Report

Weekly crypto outlet Diar’s new report is proving to be disappointing for the crypto community. The Oct. 8 report suggests that Bitcoin miners are...

Huobi Pool Enters the World’s Top 10 Bitcoin Miners by Hashrate...

Huobi Pool, part of the Huobi Group, is now one of the top 10 mining pool entities in the world by global hashrate distribution....

Hackers Have Been Secretly Using Indian Government Sites to Mine Cryptos

India is one of those few countries where the status of cryptocurrencies remains uncertain. Reserve Bank of India, the country’s central bank, has been...

Can Cryptocurrency Mining Drive Further Growth to the Clean Energy Sector?

Although cryptocurrency mining contributes significantly to the greenhouse effect, the crypto mining industry may be the answer to further investment and growth for the...

Electricity Rates Increase in Grant County in Washington for Bitcoin Miners

Grant County, a town located in the US state of Washington, currently hosts a number of cryptocurrency mining operators. These operators migrated to the...

LATEST NEWS

PRESS RELEASES