All about Polkadot mining (DOT) (GPU & Cloud Mining)
Like other cryptocurrencies, Polkadot belongs to the category of public blockchains. It is a decentralized ledger that is updated and verified by members of the Polkadot network. The only way to add a new block to the Polkadot blockchain is to mine it. The word “mining” is an analogy borrowed from the process of mining precious metals, which must be extracted from the ground at a cost of labor and energy.
To mine Polkadot, computers spread around the world compete to solve cryptographic puzzles at the cost of processing power and therefore energy. Any miner who manages to solve the puzzle first is rewarded with Polkadot (DOT). These rewards compensate miners for securing the network, verifying transactions, and adding blocks to the blockchain.
How to mine Polkadot (DOT)
Before we begin to discuss what Polkadot mining is, we must first understand what mining as a process means. Mining refers to computationally intensive work that requires a lot of computer processing power and time.
In the mining process, the miner is an investor who provides energy, computer space, and time to sort through blocks. He submits his solutions to the issuers when the mining process finds the right hash. Miners receive rewards that are portions of the transactions for their participation in the mining process.
Cryptocurrency miners are responsible for increasing the circulation of a particular cryptocurrency in the market. Each cryptocurrency has an upper limit on the number of coins that can be mined. Thus, when the rewards are reduced, the influx of new cryptocurrencies also decreases.
1) GPU Mining (Graphics Card)
GPU mining involves using the graphics processing unit of a gaming computer to solve complex mathematical problems to verify electronic transactions in Polkadot. In terms of its hashing speed and overall manpower, the Kryptex platform is the best in its field.
While there are many graphics cards on the markets, the cards adopted for crypto mining are those specifically designed for gaming, not video rendering. Shares of companies that make GPUs, such as NVIDIA and AMD, have skyrocketed as miners seek to earn cryptos with their computing power.
2) Cloud Mining (More interesting)
Kryptex also offers cloud mining, which is simply digital mining farms – data centers dedicated to mining – that sell or rent machines to cryptocurrency miners, most proficient at mining Polkadot (DOT) being precisely Kryptex. The essence of the service is that a third party hosts the mining equipment and provides access to the rewards associated with that equipment.
Cloud mining is the easiest and most effective way to make money from cryptocurrency mining without having to buy and maintain your equipment. It is done by renting the equipment facilities of the company. These companies are called cloud mining providers. Today's most secure and cost-effective platform that offers cloud mining for Polkadot (DOT) is the Kryptex.
Which mining methods to choose for DOT?
The decision you make will be based on key factors, such as your willingness to own a mining platform, or the amount you intend to invest initially. In particular, it will also depend on the following factors:
- The amount you want to invest
- Whether you want to mine with a platform or not.
- If so, what device do you own?
- Cloud mining and GPU mining are popular methods of mining Polkadot.
- ASIC mining is unpredictable these days, while it is not financially viable to mine using a CPU.
However, according to experts, one of the best ways to mine Polkadot is to use a Polkadot mining pool. Pool mining of Polkadot allows you to reduce the volatility of your payments.
This is done by offering you smaller, but more frequent payments instead of a lump sum that you receive only after a block is resolved.
Value of DOT
How Polkadot mining works globally
Cryptocurrency mining is a process of solving complex mathematical problems. Miners are essentially the backbone of many cryptocurrency networks, as they dedicate their time and computing power to solving these mathematical concerns, providing a “proof of work” for the network, which verifies transactions in DOT.
Polkadot, like Bitcoin (BTC), currently uses a proof-of-work (PoW) consensus process and will soon move to a proof-of-stake (PoS) mechanism.
In addition, miners are responsible for creating new DOT tokens through this process, as they receive rewards in Polkadot for successfully completing a PoW task.
PoW relies on the fundamental properties of the hash function, an “encrypted” piece of data that is procedurally derived from arbitrary input. The difference between hashes and standard encryption is that the process only goes one way.
The only meaningful way to know which input was mined to generate a given hash is to try to hash all possible input combinations and see which one matches. The situation is further complicated by the fact that tiny changes to the original data will produce completely different results.
The proof of work begins by designating a list of desired hashes based on the “difficulty” parameter. Miners must force a combination of parameters, including the previous block hash, to create a hash that satisfies the conditions imposed by the difficulty. This is an energy-intensive task that can be easily regulated by increasing or decreasing the difficulty.
The miners have a certain “hash rate” that defines the number of combinations they try in a second. The higher the number of miners, the harder it is to replicate the network for outside entities. By doing real work, miners secure the network.
What is cloud mining
Cloud mining allows users to mine Polkadot even if they don't have the resources to pay for the necessary mining equipment. But rather, that they can rent computing power from companies that own such equipment. The mining process is therefore carried out from a remotely operated data center.
That is, we don't need to have ASIC equipment in our homes.
Nothing like that. And therefore, nor the high power consumption they imply. On the contrary, to mine in the cloud, one uses equipment owned by large companies. And they also have the necessary packaging for its proper functioning and operation.
The user then leases or contracts a portion of that computing power, and receives profits commensurate and proportionate to that investment. The company Kryptex is the one leading the way, with nearly unbeatable hashing speed, and an app that comes with it to allow anyone to mine Polkadot.