What is mining? ASIC GPU CPU And Cloud Mining
In simple terms, mining is a confirmation of crypto money transactions by specially equipped computers that solve complicated problems and are rewarded with crypto money that appears after the transaction. Every high reward business –like high-scaled crypto money mining- needs to have quite an amount of capital. That is also applied for crypto money mining. There is a small-scaled crypto-mining option as well. There are 4 ways of mining;
- ASIC mining
- GPU mining
- CPU mining
- Cloud mining
ASIC Mining
ASIC – Application Specific Integrated Circuit is hardware, specifically created for that kind of mining. These high-end computers have been programmed for this task only. ASIC hardware has the highest power of calculation but, they consume an excessive amount of electricity. To have this kind of device, you should first have an efficient electrical infrastructure. The main difference the ASIC devices is, only they have the hardware to create proof-of-work crypto money such as Bitcoin and Litecoin.
CPU Mining
CPU mining is doing mining with a processor. It is possible to do mining with your personal computer at home with the assistance of miming software. However, CPU mining is proof-of-stake which is not popular. Mainly because the most popular crypto coins are proof-of-work. In Proof-of-stake, the mining program should always be open and it does not consume electricity as much as ASIC mining does.
CLOUD Mining
Cloud mining is for the people who want to do mining but do not have enough time or hardware. A user, apply for mining services, and they rent enough transaction power for the user. Usually, cloud services offer contracts that include hardware, software, cooling, maintenance, etc. The rental fee seems high, but the profit in this mining process is higher than the cost. There are also low-income options, but the profit is lower.
GPU Mining
GPU mining is conducted with a processor within the graphic card. The processors of the graphic cards are stronger than the main processor of the computers so they can mine material such as Ethereum. GPU mining is more common than ASIC mining since it is cheaper. GPU mining is available with more than one graphic card connected. These kinds of devices with multiple graphic cards are called ‘’Rig’’.
