It is unlikely that you can find at least one person now who has not heard of cryptocurrency. This has become one of the key parts of digital technologies that are developing every day. Bitcoin, Ethereum, and many other cryptocurrencies have already begun to be considered not just a substitute for traditional currency, for which you can buy or exchange something. This is already a reliable asset that attracts not only those who want to earn extra money quickly or technology enthusiasts, but also large investors who invest heavily in this direction.
But where do these same investors get their cryptocurrencies from? If no one lets her out, then where do you get her from?
The answer is simple. This process is called mining. And it is carried out with the help of a mining installation. Many people know this device as a “mining rig”. For all those who are going to earn in this direction or for those who want to increase their expertise in the blockchain economy, it is important to know what is a cryptocurrency mining rig is and what its principle of operation is. So, let’s talk about everything in order.
What Is a Cryptocurrency Mining Rig
The mining rig itself is an equipment that is specially designed to perform one single task – mining cryptocurrency. It does not perform any ordinary tasks that are familiar to a computer. You can’t type texts on it, browse the browser, or play computer games. It can perform up to several million calculations in just one second, because this is the only way to make some cryptographic decisions quickly in seconds. Because this is the only way to benefit from such operations.
Not all cryptocurrencies are the same, and only one specific algorithm is available for one cryptocurrency. Each installation should work with only one dedicated algorithm, this is the only way to achieve results. Even when creating a complex, they choose a certain efficiency and energy efficiency. For example, take Bitcoin, which requires the SHA-256 algorithm to work with. But Ethereum will not work with such an algorithm. Everything functions individually. Now that we know crypto mining rig is, we can dive into more complex aspects.
What Is a Mining Rig Used For?
Maintaining the functioning of the blockchain is why the installation is being created. Of course, there may be additional functions, but they are all tied to the most important function. Transactions in cryptocurrencies cannot work, just as they cannot be recorded or confirmed if there are no miners. What can the installation do?
- It makes an initial connection to the blockchain network.
- Collects and analyzes complete information about all transactions awaiting confirmation.
- Performs a cryptographic task to achieve the correct result.
- You can only benefit if you add a block to the chain, and only the one who can solve the task first gets this right.
So, if you previously thought that the installation only helps to collect cryptocurrencies, then it is clear that this is not the case. It is at the heart of the entire system. At the same time, it provides additional stability and reliability of the network. Plus, in addition to the main functions, it also performs the tasks of supporting the decentralization of the blockchain and reducing the risks of double spending, which gives maximum benefit.
Types of Mining Rigs
Mining is constantly evolving, and already today, you can read about several technologies in this area. The choice of a particular technology depends on certain conditions at once.
Now let’s look at some of the most popular technologies:
- CPU miner (on the processor)
Initially, all the networks worked on this technology. In the system, the central processor has higher power when compared with conventional computers for work or gaming. But now this option is used extremely rarely, if not to say that it has ceased to be in demand at all, since the computational power of modern algorithms is much higher than a few years ago. This option remained only in some experimental projects well, or in small solutions.
- GPU miner (on video cards)
So, what is a GPU mining rig? Now this option has come out on top. It is technology that can process huge amounts of information. In addition, it is universal, and it can be combined to work with many cryptocurrencies. And the main advantage is that they are easy to install, so you can do it yourself. And then scaling can be performed.
This is another level with a higher level of energy efficiency. Their positive side is that they can be customized and then used for specific tasks. This is already a more difficult option, in the sense that installation, configuration, and operation require a certain order of skills. Only large companies or experienced miners can work with such systems.
- Application-Specific Integrated Circuit
This is a narrower range of equipment, since it can only work with some cryptocurrencies. Take, for example, Antminer for Bitcoin. Everything will work efficiently and with high speed here. But if you change the algorithm, no results will be achieved.
When choosing a technology, it is worth evaluating not only the complexity of the system, but also the ability to work with some kind of coin. This should be a fundamental factor, as the system may not work at all. And it is also worth analyzing your abilities, whether you will be able to cope, or whether you need to choose something alternative.
What Do I Need to Build a Crypto Mining Rig?
If you think that everyone can get and assemble an installation right away, then you need a lot of experience and knowledge. Each standard system should consist of the main components that make it work. What do I need to build a crypto mining rig? Among the main elements that you do not need to forget about during assembly:
- Graphics cards (GPUs) (you can use ASIC devices as an alternative).
- The motherboard (it is worth choosing one that can support multiple graphics cards at the same time).
- Processor (CPU) (there is enough of a completely basic version without any additional functions).
- RAM (4 to 8 GB is enough for operation).
- A hard drive or SSD.
- Power unit.
- Cooling, which should include fans, radiators, and possibly liquid cooling. This is a prerequisite to eliminate the risk of overheating, which will disrupt the stability of the system.
- A frame, for example, would be a convenient option for a server rack.
- Software, which includes elements such as drivers, operating systems, mining software, pools, and other necessary components.
In addition, uninterrupted power supply and Internet are essential conditions for stable operation.
Have you decided to take up mining, or are you just interested in mining? Then you should start by understanding exactly what a crypto mining machine is and how it works. This is the basic element of getting benefits from cryptocurrencies. This is not a mandatory super-advanced system, but the reliability, stability, and decentralization of blockchain networks are prerequisites.