Information about mining


#1

Hey guys, I would like to see a summary of mining.

I was going through the mining technologies, And I am confused by hearing about pool mining, cloud mining and mining at home solo. There are only explanations about mining bitcoin, is it any different with others altcoins that are on blockchain?

It is also really unclear to the explanation - “Miner’s are doing some crazily complicated math” - What are they doing? I read the information about kind of hacking and finding a code to add it to the blockchain. Is that right? And the proof of work in this story.

Is there any analogy that would simplify this mining process?

The info about random rewording of a miner, is that only in theory when everyone has the same computing power?

I am sorry if this is discussed on the crypto pub in a different post, this is my first post/question.

Thank you.


#2

In brief, proof-of-work requires zero complicated math, and mining just requires computing power.

Mining at home solo just means you’re using your own computing power, pool mining means you’re contributing your personal computing power to a group of miners (a pool) to achieve a higher chance of success to mine the next block. The same applies to cloud mining, it is just a pool that you contribute to, possibly with the help of cloud resources


#3

Ok thanks, this was helpful.

Do you know anything about: How miners earn rewards?
By that I mean is it completely random or it is equal to their computing power?

In some articles the mining was set on the same rank as gambling or even lottery ticket, does that make any sense or not?


#4

It is completely random, whichever mining group solves the Nonce first is the one that earns the reward.

I.e. as soon as a mining group solves the equation by figuring out the nonce of the block (in bitcoin, getting to a hash that starts with 18 zeros) they then distribute the block to the network, the network validates this work and if A. it proves to be correct and B. the timestamp on the block shows that this mining group solved the block before all other groups, then they get the block reward.

There is a space reserved in the block in which the mining group adds their data, once the block has been validated it is added to the blockchain and the reward is allocated to this address.

You don’t need to have the biggest computing power to solve a block, it is simply a question of who gets to the right hash first and adds that number as the nonce in the block. In a large way this is a lottery, I wouldn’t call it gambling because in gambling you can play odds in your favour. The only odds in your favour in this case is the amount of hashing power you can produce, which can give you results faster.