What does “Mining” mean?
While classical mining, means removing precious metals by hand or specific tools, digital crypto mining is working with software and hardware by using mathematical algorithms to generate digital currencies along the blockchain.
What happens during “Mining”?
A blockchain can be imagined as a digital cash register by recording all transactions and account balances. Each digital currency (e.g., Ethereum, ZCash) has its own digital cash register, the so-called blockchain. The miners are in that case decentralized monitoring organs of the digital cash register. They process and verify the transactions and are rewarded with a block reward (new coins). These coins, handed over to the miners, correspond to the inflated inflationary money supply in the system.
How profitable is “Mining”?
The own yield depends on the self-selected computing power (hash power) in relation to the total network performance respectively the blockchain. That means, one gets the newly-minted coins proportionately. Due to supply & demand, the value of the respective coins in relation to the mining yield changes which can be sold on the various Crypto-exchanges. The value of the generated coins is volatile, but the minimum yield can be maximized by the choice of an optimal sales time.
Ethereum can be related more with oil or gas for a decentralized Web 3.0 than with money for the Internet. One can assume, that there will be a large number of decentralized web applications, so called DAPPs, which will integrate the Ethereum Virtual Machine (EVM). Transaction fees in the micro area (like a gas price) are required for the use of different services or the transmission of ethers. In the future, Smart Contracts (programmable contracts) will enable comprehensive innovations. On the bitcoin blockchain that wouldn´t be possible.
ZCash is quite similar to Bitcoin, but started in October 2016 with its first block. In contrast to Bitcoin, the zCash Founder is supported by investors and receives a defined percentage of the mining rewards, which is why it can be assumed that development is progressing faster and a common line is being tackled. In addition, zCash makes it possible to transfer non-comprehensible (anonymous) transactions, whereas basically all bitcoin transactions are traceable on the blockchain.
DASH is another still very young cryptocurrency, which works instant in contrast to Bitcoin. This means that, there is no long waiting period, contrary to competing currencies, Furthermore, DASH, is, if wanted, anonymous (specific function) like zCash. DASH integrates a hybrid inflation model from POW and POS and considers all decisions of your community (DASH masternodes).
We use highly efficient graphics cards for our mining rigs. In this context, we are using AMD Sapphire graphics cards specifically designed for the mining process. These components, delivered directly from the factory, are not available in retail or wholesale, and are also optimized by our software specialists in terms of performance and energy efficiency.
The energy-efficient use of the equipment is probably the most crucial challenge in cryptographic mining – the digital gold mining – in addition to the physical infrastructure and the hardware components used in the mining process.
Due to our carefully selected site planning and the cooperation with well-known IT partners and energy suppliers, we are able to use energy effectively and cost-effectively. During the cryptomining offered by us, only eco-electricity certified energy is used. Various green energy concepts also enable us to re-use the thermal energy of the waste heat into the energy circuit, which allows us to operate our special computers in an environmentally friendly and cost-efficient manner.