How to start Mining Crypto today?
There is no doubt that Bitcoin has made a whole lot of people rich already.
However, the cryptocurrency has been facing a lot of issues with the existing protocols, which include a slow network and too much congestion.
Bitcoin and its underlying blockchain technology, known as the blockchain, is set to become the backbone of many other cryptocurrencies, the most significant of which is the Ethereum network.
Bitcoin and the blockchain have attracted more interest from developers in recent times, which makes them the preferred choice for decentralized applications (dApps).
Ethereum is different from Bitcoin in a few ways.
It is much more ambitious, and it would require a massive shift to even try to compete with it.
For any cryptocurrency to be successful, it must achieve three things:
Network must be capable of handling transactions
Compactness must be achieved
Block time is how much time between each block (about every 10 minutes). As the network grows, the probability that a block will be built on time will eventually start to decrease.
Bitcoin and Bitcoin Cash are limited by the block time of 10 minutes.
Ethereum is capable of handling a much higher volume of transactions and uses a block time of two minutes.
Bitcoin and Bitcoin Cash Network
Bitcoin’s network has many constraints:
The network is not capable of processing many transactions per second.
It is limited to handling only the amount of transactions it can process per unit time.
Even with the increase in transactions in Bitcoin, there will be a point of time where it will be unable to process the amount of transactions that are being generated.
The Bitcoin network is set to increase by 2MB each year, which is roughly equal to doubling the number of transactions per second, but it will not be enough.
The more transactions get added to the blockchain, the more transaction confirmation is required.
This increases the computational costs for mining and creates more congestion on the network, as well as on the servers in the network.
To solve this problem, there are two approaches that have been tried:
Decrease the block time from 10 minutes to 2 minutes, increasing the number of transactions per block.
Increase the block size, allowing more transactions to be processed.
These solutions are not ideal, as they introduce problems of their own.
The first solution does not allow time for users to process the new transactions.
The second approach creates a problem of scaling.
The Ethereum network was designed with some clear goals in mind.
The network aims to build something like a global computer, with everyone having their own address to store their data, similar to how your email address is used to access your account.
The transaction information is also shared among many nodes, instead of a few like in Bitcoin, and in case of failure or downtime.
