Here are all the possible ways you could mine cryptocurrency

Cryptocurrency is known to be protected through cryptography technology, which is the best current method of securing blockchains and transactions. However, since the crypto network is digitalized, safety is provided in numerous other ways. One of them is mining. 

The mining process involves a globally-scaled effort to add and validate transactions on the networks in order to be free of third parties. Miners use specific hardware to solve complex mathematical problems, for which they are rewarded. In the beginning, mining was much easier than it is now since the blockchain wasn’t as packed with users and updated. Unfortunately, mining is quite complex now and requires miners to invest a lot of money in hardware and energy.

Still, these efforts made crypto easier to acquire. For example, you can buy Bitcoin with debit card, credit card, or even through Apple or Google Pay. Cryptocurrency is getting closer to worldwide adoption, so mining technology is also changing. Let’s see all the possible ways to mine crypto.

Cloud mining 

As mentioned before, mining tends to be quite expensive, so people are looking for ways to minimize investments. Cloud mining is one of them, as it empowers miners by allowing them to rent mining setups from specialized companies. People are charged certain fees for using these technologies, but it’s still more affordable than buying and setting up a mining rig from scratch. 

Cloud mining has numerous advantages, such as the following:

• It ensures miners a share of the company’s profits;

• It helps save time on mining;

• It relieves miners from the financial burden;

Still, crypto mining is prone to scams, exposes users to diminished rewards, and can put miners at risk of centralization, so it must be done carefully and after considerable research. At the same time, considering the increase in the overall mining difficulty, it might be possible for cloud miners to receive fewer profits since mining farms influence the hashing power. 

AI-powered mining 

Now that artificial intelligence has emerged in the crypto sector, it would be a waste not to use it in the mining process since it’s so demanding. AI mining can help users analyze more data at a faster pace, so they wouldn’t have to spend a lot of time identifying all the signs of a change in the market. 

Many aspects of the mining process could be optimized, from efficient energy use to predicting market price shifts, so miners can focus on improving their strategies and spreading out investments. AI can considerably improve these operations by increasing profitability, monitoring the market in real-time, and providing scalability.

We’re still not ready to use AI because it requires a lot of computational power, and the algorithm's complexity is also a challenge. Moreover, the regulatory environment poses numerous difficulties for miners, regardless of the mining technique chosen. 

Merged mining 

While regular mining limits users to mine only one cryptocurrency at a time, merged mining allows them to include multiple coins simultaneously with the same hashing power for more profitability. The cryptocurrencies must have the same consensus mechanism for the mining process to be possible, so Ethereum and Bitcoin couldn’t be mined together. 

Users choose a parent blockchain through which transactions will be validated, but “child” blockchains are also helpful in safeguarding the networks. The latter will be the income source for miners as a reward for contributing to safety. 

Miners can leverage the same hardware to mine multiple cryptocurrencies. Dogecoin, Rootstock, and Elastors are some of the coins that solely rely on merged mining with Litecoin and Bitcoin. Merged mining can be difficult due to its complex technical design and also risky as miners depend on the parent blockchain, which can be compromised. 

Underwater mining 

Underwater cryptocurrency mining is one of the latest shenanigans in the industry, as miners are overwhelmed with the rising production costs after the halving. The process involved setting up mining rigs to generate energy and provide cooling. Underwater mining is among the most sustainable ways of operating since it helps reduce energy costs and the environmental impact on the planet. 

Hence, mining rig manufacturers started creating liquid-cooled submerged Bitcoin miners that boost power efficiency per terabyte. These new technologies are also soundless, solving the problem of noise pollution that traditional mining rigs cause in people’s homes. 

Proof of Elapsed Time mining 

We already know what PoW and PoS leverage as consensus mechanisms, but there are many other technologies that rule over regular systems. PoET is one of them and has a unique approach to mining: randomly generating mining rights and block winners on the blockchain in a transparent and verifiable ecosystem.

The consensus ensures more efficiency by preventing high energy consumption. While initially created by the Intel Corporation, the technology is also leveraged in decentralized ecosystems. It’s based on the lottery system as it expands winning chances across the network. 

Green mining 

Green mining is one of the latest methods of operating without consuming energy. Since Bitcoin is a massive air polluter due to the massive CO2 from regular mining, miners demand sustainable methods. Underwater mining is one of them, but there are many other promising techniques. 

Green mining involves using renewable energy resources, such as solar or wind. At the same time, sustainable mining should also include using energy-efficient equipment and finding ways to capture carbon and transform it into something useful. 

Traditional mining isn’t harmful to the environment just because of its CO2 emissions. The hardware used is often tossed as it cannot be recycled or reused, ending up in landfills as its lifecycle is pretty short. Hence, the problem can be tackled from multiple perspectives to stop the activity from contributing to climate change. 

How do you mine cryptocurrency? 

Cryptocurrency mining is essential for maintaining a blockchain’s security and reliability. Still, regular mining with PoW and PoS pollutes the environment too much, so miners are looking for alternatives. Mining more cryptocurrencies simultaneously and approaching underwater hardware and renewable energy are only a few ways users can mine crypto more efficiently.