Faqs

Frequently Questions

Spending energy to secure and operate a payment system is hardly a waste. Like any other payment service, the use of Bitcoin entails processing costs. Services necessary for the operation of currently widespread monetary systems, such as banks, credit cards, and armored vehicles, also use a lot of energy.

Mining software listens for transaction broadcasts through the peer-to-peer network and performs appropriate tasks to process and confirm these transactions. Bitcoin miners perform this work because they can earn transaction fees paid by users for faster transaction processing, and newly created bitcoins issued into existence according to a fixed formula.

Mining is the process of spending computing power spending computing power to process transactions, secure the network, and keeps everyone in the system synchronized together. It can be perceived like the Bitcoin data center except that it has been designed to be fully decentralized with miners operating in all countries and no individual having control over the network.

Mining creates the equivalent of a competitive lottery that makes it very difficult for anyone to consecutively add new blocks of transactions into the block chain. This protects the neutrality of the network by preventing any individual from gaining the power to block certain transactions. This also prevents any individual from replacing parts of the block chain to roll back their own spends, which could be used to defraud other users.
In the early days of Bitcoin, anyone could find a new block using their computer's CPU. As more and more people started mining, the difficulty of finding new blocks increased greatly to the point where the only cost-effective method of mining today is using specialized hardware.
These abbreviations stand for the hashing power that your miner is generating. MH/s stands for megahash per second and GH/s stands for gigahash per second. There is a direct correlation between how fast your miner works and how profitable it will be.
W/Gh and W/Th are abbreviations for watts per gigahash and watts per terahash. These metrics calculate how many hashes a miner can run per watt of electricity. Mining hardware with lower W/Gh and W/Th are more efficient. Currently, the Antminer S7 and Avalon6 are the most efficient miners available for purchase, at 0.25 W/Gh and 0.29 W/Gh, respectively.

The term "hashing" means how quickly your hardware is processing data from the Blockchain and solving the complex mathematical equations that are required to earn bitcoins.
A mining pool is a group of miners who have shared their hashing resources to solve blocks together and the rewards are then distributed amongst the members.
A Graphics Processing Unit powers most computer video cards and can be used to mine Bitcoins.
A share is merely an accounting method to keep the miners honest and fairly divide any rewards earned by the pool.
A Bitcoin mining module is usually a worker as assigned in the Bitcoin mining software. For example, four GPUs are plugged into the motherboard constituting the Bitcoin mining hardware. Then the Bitcoin mining software identifies each GPU as a unique worker.
An Application-Specific Integrated Circuit is a special chip designed specifically for mining Bitcoin and is much more energy-efficient and faster than GPU or FPGA mining.
A Field-Progammable Gate Array was already an established hardware product that can be used for different purposes, but in this case the technology was repurposed for mining Bitcoin.
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies are a kind of alternative currency and digital currency.