Blockchain Mining is Not Only about Earning Bitcoins

December 17, 2018 AtoZ MarketsMining is an important part of cryptocurrency and blockchain technology. Nevertheless, the process of discovering, checking and adding new blocks to the chain can do more than just increase the supply of a certain cryptocurrency.

How Mining Works?

In the blockchain, all transactions are interconnected through blocks. After a new transaction or block is added, the chain extends. In the mining process, users are offered to solve the puzzle for reward, usually some cryptocurrency or token. In addition to the transaction of reward or crypto a new block is added to the chain of data blocks. Users who provide their computing power for mining are called miners. They serve as the gatekeepers who ensure the smooth operation of building blocks. Although mining is usually associated with Bitcoin and other cryptocurrencies, this is just one small example of how mining can be used in a decentralized technology. 

Data Generated Through Daily Internet Usage Might be Used in Illegal Purpose

When Bitcoin was created and the first ever successful implementation of the DLT infrastructure happened, it seemed that the ground was set for the emergence of a completely decentralized digital space. Recently, the special attention of users has been attracted by the democratization of data and the return of control over it. As the chains of the public blocks theoretically decentralized, the data does not belong to any central server. Every day spent in the digital world leads the creation of certain data which is used by many companies to improve their systems, as well as their profits. As a rule, users remain in the dark about what happens to their data and what their value is until scandals arise. Those who live in the world of blockchains fought for the democratization of data, but up to this point, a platform for this has not been created.

Positive Impact of the Mining

Certain blockchain specialists suggest that mining could be used to promote positive social engineering in the digital space. Virtually every industry can greatly benefit from a chain of mining blocks, especially when it is used as a solid foundation for developing services and products. So far, we have seen how mining blockchains in a decentralized environment led to success in healthcare, education, and finance, and these are just some of them. If done correctly, mining on the blockchain can also lead to significant profits for miners. For some, mining has become a full-time job. It is relatively easy to start mining, all that is required is a home computer and an internet connection. In general, mining offers a new way of making money, participating in a real blockchain project, where the user stores tokens and a way to return to the community in which he participates, by checking information, and also help promote this amount of data. Many people believe that investing in blockchain is an exclusively financial effort. However, with all the advantages that miners carry in the world of cryptocurrency, mining can provide higher returns than net investments in decentralized technology.

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