Mining is the process of validating transactions on a blockchain in exchange for fresh Bitcoin. This reward reduces transaction fees by providing a secondary incentive to contribute to the network’s processing capacity. The introduction of specialized processors such as FPGAs and ASICs running complex hashing algorithms has enhanced the rate of creating hashes, which validate any transaction.
Since the introduction of Bitcoin in 2009 and the subsequent explosion in Cryptocurrencies, there has been an arms race for cheaper yet more efficient devices. The hash rate of mining is commonly measured in TH/s.
As more people enter the virtual currency realm, producing hashes for validation has become more complicated, pushing miners to invest increasingly significant sums of money to enhance processing performance. Mining is popular in areas with cheap electricity, a cold temperature, and governments with clear legislation and legal frameworks.
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