Mining Experiences

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In cryptocurrency terms, mining is the act of discovering a new block for a specific blockchain by adding new transactions towards a block and propagating it towards the network. Afterward, when the block is full, the hash of the previous block is added and a specific hash is to be computed through an algorithm called Proof of Work. Once this is done, the block with the hash is propagated to the rest of the network, and the winner or discoverer of the block is given a block reward, which can be used to increase the currency. Bitcoin, the first cryptocurrency, used an SHA-256 PoW and would give 50 BTC every 210,000 blocks. The latest Halving for BTC (and BCH and BSV) turned the block reward from 12.5 to 6.25 BTC/BCH/BSV, with BCH and BSV chains being a few weeks early. The price follows soon after in some form or another due to the rarity of the reward.

Now, I want to tell how hard it is to mine anything in cryptocurrency space, and the expenses you have to face when mining any coin. The coin I will be using for my first example is a modified Monero fork called Blur Network, with the token designation of BLUR. I will also show examples of other kinds of coins such as Bitcoin (BTC), and Monero (XMR). I will also show how the Mistcoin (MIST) token worked.

The first thing you should notice is that BLUR uses a modified CryptoNight algorithm called CryptoNight-Dynamic. It is, as stated in their website, an algorithm that maximalizes usage on anyone using a computer itself. Based on my experience, CryptoNight-Dynamic runs weaker than Monero's RandomX with 30-60% hash loss. However, due to the low volume and preference of CPU, you are able to get the full block reward. No transaction fees, however.

I was able to succeed in mining a few sadly-empty blocks.

In this example, it shows us what Bitcoin mining was before GPUs, FPGAs, and ASICs were made specifically to mine Bitcoin. During the time of Satoshi and cypherpunks, they were able to mine BTC with simple CPUs found in 2008. In today, with better CPU chips such as AMD Ryzen, we are able to maximize CPU-based minings for the cost of running a computer.

Bitcoin mining right now is something I would definitely leave for the rich and able. Due to ASICs, CPU, and GPU miners need a whole warehouse full of an overclocked system to even reach one TH/s. It also meant that if you do try it, you will only get satoshis. There is a Bitcoin Miner app in the Windows Store, and do not use it.

I didn't continue my Cryptocurrency mining journey sadly since electricity costs are high.

From what I learned here, there are now too many variables to continue mining. One thing for sure, you need a beefy computer, a place with low electricity cost, and the correct program for the job. Usually, the Coin itself will tell you which mining software you will use. However, most of them will have a built-in miner.

Right now, I am trying out "mining" MIST, which as everyone knows is the first mineable SLP Token. As of the moment, it is alpha software, causing tons of double-spends. I suggest not going through, but if you do want to try, there is the Telegram link for help and installation: Here.

This mining tool for Mistcoin is really interesting in itself, as it is not like a normal Proof of Work; instead, the minting baton is passed from user to user. The way it was implemented, however, is still primitive.

One thing to learn is that this is a good way to decentralize a coin, for in my opinion whoever controls the mining hashes the most is the one that controls the blockchain. However, you don't need to mine to contribute, even if it is one of the defining traits of "crypto" in cryptocurrency. The best way to contribute is to share your experience, allow others to experience the true journey of Cryptocurrencies, and contribute to your favorite coins.

Mining is important, but user interaction even more so. Why would people spend electricity and computing power for a Coin that doesn't work? (Except BTC, since it has the first-mover advantage, and all coins are paired to it.)

This is Rowan, signing off.