The devices used for mining, which are called miners, solve complex mathematical equations with their high computing power and obtain digital currency in return. There are different types of miners that will have different profitability according to the power and cost. To know what a miner is and what mining means, as well as what miners you need to mine and with what requirements, read this article until the end.
What is a miner?
miner device Or hardware It is powerful that with Processing power Above your ability Solving complex math problems has the Miners by solving these complex problems in the networks from Proof of work consensus algorithm They use, work Verification of transactions And Block construction they do Then they are rewarded with digital currency in exchange for doing this, so called digital currency Extraction they do. Miners in the category of devices Isik (ASIC) Placed.
So, as it is known, miner and mining (mining) only work in proof-of-work networks, and there is no need for a miner in proof-of-stake networks.
Read more: Proof of work and proof of stake, concepts and differences
The mining process includes the verification and final registration of transactions in the blockchain. This will lead to the decentralization of the network, increase in security and ultimately the production of new digital currencies.
In this process, first all verified transactions are collected in the form of blocks. Then there is a cryptographic equation that must be solved by the miners. After solving this equation, new blocks can be added to the blockchain and finally, the miner receives the desired digital currency as a reward.
Mining plays an important role in securing the blockchain network and providing the intrinsic value of digital currencies. It is also used as a method for the initial distribution of these currencies.
Bitcoin mining is one of the most popular ways to earn money in the field of digital currencies and blockchain. At the beginning of the emergence of Bitcoin, it was very easy to mine and people could mine large amounts of Bitcoin using their personal computers.
But today, due to the limited number of remaining bitcoins and the sharp increase in demand, bitcoin mining is very complicated and requires significant investment in powerful equipment.
Although Bitcoin mining is still profitable, the intense competition and the need for a large initial investment have increased the risk of this business. As a result, making a decision about investing in this area requires careful consideration of all aspects.
Read more: Bitcoin mining risks and costs in Iran; Miners don’t make money for free
What is the difference between rig miner and miner?
Rigminer and Miner are both tools for mining Bitcoin and other digital currencies, but they also have differences from each other. Rig miners are actually powerful graphics cards that are used to perform complex mining calculations. But a Bitcoin miner is an integrated hardware system that is usually designed and optimized to mine a specific type of currency.
The main difference between the two is their flexibility. Rigminers can quickly switch from one currency to another and mine several different currencies at the same time. But the miner is usually optimized for mining a specific type of currency like Bitcoin and it is not easy to change it.
Some popular digital currencies that are mined by rigminers are:
- Monroe
- ion
- Ethereum Classic
- Zikash
Therefore, people who want to participate in the mining of different currencies so that they can quickly change the currency they want to mine when the market conditions change, go to rig miners. But those who seek to mine a specific currency prefer to use a dedicated miner related to that currency.
Read more: Mining rig or miner device? Advantages and disadvantages of mining with graphics card and ASIC
Types of miners
The types of miners can be theoretically defined in the following categories:
- CPU: or computer central processing unit, was the first tool used for mining. CPUs were the most available option, but due to low performance and high power consumption, they gave way to more powerful tools.
- GPU: or graphic processor, with higher computing power than CPU, was the next option for miners. GPUs were capable of mining several different currencies, but they were not very efficient for Bitcoin.
- FPGA: or “Programmable Gate Array”, allows high customization for mining. FPGAs have lower power consumption and more hash power than GPUs, but their performance is also limited.
- ASIC: which stands for Application Specific Integrated Circuit and eventually replaced the previous three with the advancement of technology to increase the efficiency and profitability of mining. Also, mining pools were another way to increase productivity.
ASIC miners are one of the most widely used devices in digital currency mining. ASIC literally means application integrated circuit. These devices are specifically designed to mine a type of currency that has become popular as a Bitcoin miner.
For example, Bitcoin ASICs only support the SHA-256 algorithm. In addition to Bitcoin, ASICs are also used to mine other currencies such as Litecoin, Dash and Dogecoin.
The important point is that currencies like Bitcoin and Litecoin can only be mined with ASICs. ASICs contain a large number of powerful chips that have a very high computing speed, but are only limited to cryptocurrency mining.
In contrast, conventional systems use the CPU and RAM for random access. But ASICs contain dedicated electronic circuits to store information related to mining.
Read more: Miner price in the Iranian market; Factors affecting the price of the extraction machine
Suitable devices for home mines
Home miners are tools that allow mining at home for ordinary people without the need for expensive professional equipment. These devices are usually used as bitcoin miners to mine it and other digital currencies that use the proof-of-work algorithm. There are several important points in choosing a home miner:
- The computing power or processing power of the device must be sufficient to solve complex mining algorithms. The higher the power, the greater the chance of success and receiving rewards.
- The amount of electricity consumption of the device should be optimal in view of the need to stay on continuously so that the user does not incur heavy costs.
- The production of heat and noise and the need for a suitable cooling system are also important.
- The cost of purchasing and maintaining the device should be proportional to the profit from mining.
- Products such as Antminer S19, Whatsminer M30S, AvalonMiner 1246 and Bitmain Antminer T19 are common home miners. Of course, before buying, it is recommended to choose the best device according to your needs in consultation with experts.
Equipment needed to set up a Bitcoin miner
Setting up a Bitcoin miner and starting to generate income from it requires the preparation of several basic items:
- Suitable hardware including powerful GPU, motherboard, RAM, high capacity CPU and powerful power supply
- Installing wallets such as Exodus or Electrum and creating addresses to receive profits
- Selection and configuration of software required for miner monitoring
- System preparation by providing proper cooling system and high speed internet connection
- Setting up and monitoring hardware performance
- Regular updating, security, and proper system maintenance
Considering these things and observing the technical details, an optimal mining system can be set up and generate income from it. Finally, it is important to note that in order to start working and investing in the mining industry, it is necessary to comply with all the things we have mentioned.
Conclusion
In this article, we examined what a miner is and what role it plays in blockchain networks. We also had a look at the types of miners and checked the equipment needed to set up a Bitcoin miner.
Although the popularity of digital currency mining has decreased in recent years due to various factors, it has not disappeared and many people are active in this industry. Have you ever had the experience of mining digital currencies? What is your favorite miner? Share your experiences and opinions with us in the comments section.
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