Mining is a necessary component of decentralized blockchain structure functioning

We explain mining in layman’s terms


The essence of mining is producing calculations by cryptographic algorithms (solving mathematical problems of hash function search), necessary to record transactions into the distributed registry (blockchain) of a particular system (for example, Bitcoin or Ethereum). For these calculations, computers participating in the mining process (the so-called miners) receive a certain reward in the cryptocurrency of the network they are servicing (remuneration is generated from the issuance of new «cryptonyms» and transaction fees paid by users).

For effective solving of mathematical problems, computers are joined in networks (so-called pools). For pool functioning special software is needed, which is EasyPool.

In this case Easypool plays the role of the server that assigns and distributes tasks (calculations) between all connected devices and generates payments. The pool allows users to join resources to increase the probability of mining a cryptocurrency by joint solution of blocks. This helps to reduce the influence of the «luck factor» and more aids more steady and predictable receipt of the generated cryptocurrency.