Cryptocurrency mining, also known as crypto mining, is using a computer to verify a form of cryptocurrency and adding it to the blockchain digital ledger. The mining process involves competing with other crypto miners to solve complex mathematical problems. As the crypto miner solves these problems, the miner adds these transactions to the blockchain. The first cryptocurrency miner to solve the problem is rewarded for authorizing the transaction and as a result, earn small amounts of cryptocurrency.
What is The Cryptocurrency Mining Process?
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- Verify if transactions are valid.
- Bundle transactions in a block.
- Select the header of the most recent block and insert it into the new block as a hash.
- Solve the “Proof of Work” problem (the more difficult the problem, the higher the value of the reward for solving).
- When the solution is found, the new block is added to the local blockchain and propagated to the network.
Bitcoin Mining
Bitcoin is the most well-known cryptocurrencies, and when its price spiked to nearly $20,000 in late 2017 mining this currency could be extremely profitable. The process of mining actually contributes to the “security” aspect of cryptocurrencies. Miners have to approve transactions before they are added to the blockchain, which keeps the Bitcoin network safe, secure and stable.
Types of Bitcoin Mining Hardware
What is Cryptojacking?
Cryptojacking is hijacking someone’s computer for the purpose of mining cryptocurrency. If you use your own computer to mine cryptocurrency, a normal person can expect to only make a couple of dollars per day. However, if you can figure out how to use other people’s computers, crypto mining can be far more profitable. As cryptojacking has become more profitable, it has become more common. Your computer will typically get infected with the cryptomining code through a link sent via email or through shady download links.
How To Detect Cryptojacking
Cryptojacking is a fairly simple process, but it’s not always easy to detect. Most malware detection tools won’t be able to find cryptojacking scripts that run on websites you visit or embedded in software you’ve installed. With this in mind, there are still a few ways to detect cryptojacking on your machine. These types of software are incredibly CPU-intensive, so they may cause your computer to overheat, or cause other tasks to run noticeably slower. Poor performance could be a sign of many different types of malware, but if you’re worried about cryptojacking this could be a sign you’ve been infected.