What is digital currency extraction or mining?
Mining is the process of creating a block of transactions that must be added to the blockchain. Miners use their time and computing power to process transactions and generate blocks, and receive rewards for approved blocks.
Decred Mining (DCR)
Decred Cryptocurrency (DCR) is one of the cryptocurrencies on the blockchain. The currency was launched in February 2016. Decred and his protocol have open governance and a sustainable budget for development at the entrance to society.
Based on the white paper of this cryptocurrency, Decred is designed to approve all transactions and changes made to the protocol. For this reason, there is no way for Decred's holders to manipulate protocol performance. Decred was heavily influenced by Bitcoin and used many of its principles. In other words, Decred is a community-based cryptocurrency designed to provide a truly decentralized and equitable alternative. Current finances are in the hands of the bank or the government. With Decred Cryptocurrency, community members manage the system, set the rules, and determine the direction of the project.
This cryptocurrency uses a combined proof of work (PoW) and proof of stake (PoS) system to ensure that a small group can not dominate the transaction process or make changes to Decred without entering the community.
Factors affecting the revenue of cryptocurrencies
Several important factors in mining profitability are:
- Appropriate hardware: Miners must have the latest hardware to compete and succeed in mining. Equipment can become obsolete within a few years.
- Electricity costs: It is essential that a miner can use electricity at the lowest possible cost.
- Digital currency price: The price of the desired currency is very important in extraction. Because miners receive a certain amount of digital currency when solving math problems correctly. If the value of the currency is low, it may not be cost-effective to extract.
- Network Hardness: Network difficulty is a measure of how to extract a block of cryptocurrencies, or more technically, to find a target. The high difficulty of the network means that extracting the same number of blocks requires more computing power and makes the network more secure against attacks.
- Hash rate: The hash rate is a unit of measurement of the processing power of the blockchain network. The network must perform intensive mathematical operations for security purposes. When the network reaches a hash rate of 10 Th / s, it means that it can perform 10 trillion calculations per second. In other words, a hash rate is the total computational power used to extract and process transactions in the proof-of-work blockchain. The hash rate is often used as a measure of network health in proof-of-work cryptocurrencies. The higher the hash rate, the 51% more difficult it is to successfully attack. But increasing hash rate over time can also indicate an increase in mining interest. Conversely, reducing the hash rate causes miners to leave the network. Because network security is no longer profitable for them.
Digital Currency Mining Calculator
To make the most of your mining equipment, as well as have a better estimate of mining revenue, you need to explore the potential of your mining machine and not go into the process blindly. Hence the use of digital currency mining calculators is essential.
To work with the bombe's Bitcoin mining calculator, consider the following:
- Hashing Power: Enter the hash rate of the extractor in the TH / S unit.
- Power Consumption: Enter the amount of energy and electricity that your mining hardware consumes per watt unit.
- Cost per kilowatt-hour: Enter your electricity tariff (household, industrial, etc.) in kilowatt-hours.
- Pool fee: Enter the amount of fee the pool receives from you in percentage points.