To understand the meaning and process of Blockchain mining, first you need to understand the meaning of Blockchain itself. Please read to our “Blockchain Platforms, 9 Reasons Why it Shows a Never Ending Growth” blog post to understand the meaning of Blockchain.
This blog post will be discussed in 2 sections i.e 1, The need to mine, and 2, the types of mining Hardware.
1. The Need to Mine
There are millions of transactions taking place every day with cryptocurrencies such as Bitcoin and Litecoins, and these transactions are being verified by some specialized hardware known as crypto miners. Millions of these hardware are bought and run by individuals, and corporations across the world. Upon each verification made by these miners (hardware owner or coorporation), they are being rewarded with the cryptocurrency they are powering (say Bitcoin). Block Labs is a pioneer and an industry leader in the Middle East in terms of expertise in mining.
2. Hardware Types
The encryption technique or algorithms used in different Blockchains varies and so does the hardware and optimization required. For example, the Bitcoin network runs an algorithm called SHA-256. This algorithm has specialized ASIC (Application Specific Integrated Circuit) machines that help nodes process the input and work given by the network. Currently, the most popular ASIC hardware is produced by Bitmain (Antminer S9i), Whatsminer (microbit) Bitfily (Cheetah), Innosilicon (T2) and Japanese internet giant, GMO (B2/B3 miner).
Some other popular cryptocurrencies and their algorithms like Litecoin (SCRYPT algorithm), DASH (X11 algorithm) and Ethereum (ETHASH algorithm). Each algorithm carry their own hardware requirements, and they require specialized techniques to maximize production.
Experience Block Labs
This is where the expertise of Block Labs ® assists clients in maximizing revenue and diversifying their portfolio to include more efficient hardware and higher profitability Blockchain mining business.