Miner
| Miner - an entity that takes part in the cryptocurrency mining process. Cryptocurrency mining is the process of verifying and adding transaction records to a public ledger (blockchain). This ledger of past transactions is called a blockchain. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Mining is how new cryptocurrency is brought into circulation. Miners are rewarded with cryptocurrency for verifying and committing transactions to the blockchain. Ethereum, the second largest cryptocurrency by market capitalization, uses a mining algorithm called Ethash. Mining requires specialized hardware and software. Ethereum miners can join a mining pool, where they combine resources and share rewards. Mining can be an energy-intensive process. Ethereum’s proof-of-work algorithm is designed to be resistant to ASIC (Application-Specific Integrated Circuit) miners, which are specialized hardware used for mining Ethereum. ASIC miners are often used in large-scale mining operations, where electricity is cheap. However, Ethereum is moving to a proof-of-stake algorithm, which will be more energy-efficient and is not as susceptible to centralization from ASIC miners. Mining is an important part of the cryptocurrency ecosystem. It helps to secure the network and add new cryptocurrency into circulation. Miners are rewarded for their work with cryptocurrency. Ethereum is moving to a proof-of-stake algorithm, which will be more energy-efficient and is not as susceptible to centralization from ASIC miners. |
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