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This is a beginner's guide on mining cryptocurrencies.
🧵 👇🏻
Mining 101
Typically, when you transfer money using a service like Paypal, they take a small cut for facilitating the exchange.
In cryptocurrencies, people like you and me act as Paypal and facilitate exchanges of cryptocurrency. We get a cut for this just like Paypal did.
In order to make these transactions happen, our computers need to do some calculations which requires a lot of computational power.
A GPU or a Graphics Processing Unit which is typically marketed for gaming workloads can be used to mine cryptocurrencies.
Why do you need a GPU?
Today, there are so many miners that the "difficulty" of mining cryptocurrencies has skyrocketed, which basically means it takes a lot of computational power to mine crypto which GPUs can provide and CPUs cannot.
(❗ This is an oversimplification)
If you are interested in the inner workings of how blockchain and cryptocurrency, then I highly suggest that you read this thread by @oliverjumpertz
🧵 👇🏻
Mining 101
Typically, when you transfer money using a service like Paypal, they take a small cut for facilitating the exchange.
In cryptocurrencies, people like you and me act as Paypal and facilitate exchanges of cryptocurrency. We get a cut for this just like Paypal did.
In order to make these transactions happen, our computers need to do some calculations which requires a lot of computational power.
A GPU or a Graphics Processing Unit which is typically marketed for gaming workloads can be used to mine cryptocurrencies.
Why do you need a GPU?
Today, there are so many miners that the "difficulty" of mining cryptocurrencies has skyrocketed, which basically means it takes a lot of computational power to mine crypto which GPUs can provide and CPUs cannot.
(❗ This is an oversimplification)
If you are interested in the inner workings of how blockchain and cryptocurrency, then I highly suggest that you read this thread by @oliverjumpertz
What actually is a Blockchain?
— Oliver Jumpertz (@oliverjumpertz) February 16, 2021
Bitcoin is breaking record after record, but there must be more to the technology than just crypto, or not? Well, we can take a look at the underlying technology first to understand what it actually provides to us.
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