Frequently Asked Questions (FAQs)

What is cryptomining?

Mining is the process of creating a new block of transactions to be added to the blockchain by solving computationally difficult math puzzles. Bitcoin and Ethereum blockchain currently both use the proof-of-work (PoW) consensus mechanism.

Mining is the lifeblood of proof-of-work.

Miners, the computers running software, consume their time and computing power (aka “mining power”; hashrate is a measure of the computing/mining power) to process transactions, produce blocks and get block rewards, to make the blockchain payment network trustworthy and serve as a way to secure the network from attacks.

In most cases, the average computers wouldn’t be able to earn enough block rewards to cover the associated costs of mining. So the miners must purchase a batch of dedicated computer hardware in order to mine profitably within a vast and long-circle investment.