What is mining?
Things to consider as well as cautions in understanding mining
When learning about mining for blockchain and its calculations, it is important to consider the following
About the blockchain calculations
- A participant (minor) who finishes a new block calculation first receives the compensation
- Earning the newly issued cryptocurrency = mining
- This procedure requires a transaction fee
Performing a calculation of blockchain requires an enormous computing powerA high precision of the calculations is not necessary
GPU is a supplementary unit that assigns priority to calculating speed than the precision.
Due to the above reasons, the necessity of a system specialized for mining is currently on the rise.
Mining system consists of one CPU (general purpose processor) with multiple mining GPU cards installed.
→This means it is a specialized system for mining that is capable of performing calculations at the optimum efficacy.
Characteristics of cryptocurrency and its present situation
Blockchain computation becomes increasingly more complex
Current mining requires high computation capacity, due to the fact that as the number of issues increases, the newly generated blockchain calculation becomes more and more complicated.
It is impossible to get enough rewards from the home mining system
There is an emergence of the concept of the "mining farm.”
Mining farm consolidates a large number of mining systems and realizes a large-scale mining
The increasing complexity of blockchain calculation
Commonalities and differences between GPU adapted HPC and cryptocurrency mining (farming)
- Calculation power is needed more than calculation accuracy
- Specialization and optimization for large-scale operations
- Security issues at the higher layer level
- Different hardware requirements: data communication capabilities between systems etc.