The first decentralized cryptocurrency, bitcoin, was created in 2009 by pseudonymous developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash function, as its proof-of-work scheme. Bitcoin was the first established currency, Since the inception of Bitcoin, there are now over thousands and more different cryptocurrencies seemingly launching each week. In this time, we’ve seen a number of headlines around the digital currency market and in particular, it’s volatility.

In order to understand how mining works, first you need to understand how it relates to the blockchain. Every transaction made using cryptocurrency is encrypted and added to a block and after a number of transactions been made, this block is then added to a publicly available blockchain. Due to these blocks being heavily encrypted, it is essentially a difficult equation that only a powerful computer can solve to release the block to a public blockchain. The miner is then rewarded with that particular coin as part of a “finder’s fee” and also increases the coin’s supply.

In 2010, a PC with an i7 Intel processor could mine around 50 bitcoins per day. That was almost useless at that time, as bitcoin was only worth around $0.08. Miners ended up paying more for the electricity it took to mine bitcoin than the coin was worth.

USING GPUs FOR MINING bitcoin

With the growth and popularity of bitcoin and the rise in network difficulty, mining with PCs gradually became inefficient. Bitcoin enthusiasts began to realize that high-end graphics cards (GPUs) could process Bitcoin’s cryptographic hashes at much higher speeds than CPUs. Starting in October 2010, people began to build mining rigs that mined bitcoin using GPUs. A typical mining rig back then was built using a motherboard, a CPU processor, and six high-end graphics cards. Of course, such GPU mining rigs consume a great deal of electricity. The use of GPUs for mining bitcoin led to a rise in the network difficulty. As time passed, the efficiency of GPUs in bitcoin mining has steadily declined.

ASIC MINERS

Mining via field programmable gate arrays (FPGAs) was preferred over GPU mining rigs, as their electricity consumption was comparably lower. Mining bitcoin via FPGAs lasted no more than a year, an ASIC (application specific integrated circuit) miners were first offered for sale in June 2012 by Butterfly Labs.

By 2013, ASIC miners became the most powerful cryptocurrency mining device on the market. Now ASIC miners are use in mining both bitcoin and altcoins, including Namecoin, Gridcoin, Ripple, Next, Primecoin, Feathercoin, Peercoin, and Swiiftcoin. The first ASIC miner could produce a hash power of around 1,500 GH/second, which was 100 times more efficient than the most powerful GPU mining rig back then.

With the popularization of ASIC miners and the rise in the price of bitcoin, the network difficulty skyrocketed. With this, the mining hash power began to be controlled by individuals and companies which owned huge mining farms with hundreds to thousands of ASIC miners. By 2014, one needed to invest a large amount of money in ASIC mining equipment in order to mine bitcoin.

Developers started to work on creating cryptocurrencies that are ASIC resistant and can still be mined by CPUs and GPUs. A wide array of ASIC resistant cryptocurrencies was created since 2013, including Bytecoin, Monero, Quazarcoin, Ethereum, Ethereum Classic, and Bitcoin Gold.

Bitway is developed to decentralize the process of mining. Bitway mining platform enables users to mine a variety of ASIC resistant cryptocurrencies. It is design to help introduce more people to the world of cryptocurrencies through mining, as all they have to do is join the Bitway platform and begin mining with just a single click.

for more information on Bitway Project follow the below links

Website - https://bitway.net/

Whitepaper - https://bitway.net/whitepaper.pdf

Bitcointalk Thread - https://bitcointalk.org/index.php?topic=5122307.0

Telegram - https://t.me/bitway_net

Facebook - https://www.facebook.com/bitway.net/

Twitter - https://twitter.com/bitway_?lang=en

Instagram - https://instagram.com/bitway_official

 Writen by CLE_HABS