MiningFriend: Legit Crypto Mining Gig? – BitcoinExchangeGuide.com
What Is MiningFriend?
MiningFriend is a digital platform that enables users to purchase a share of the mining capacity or mining rights. Users receive a mining profit generated by their capacity share of mining rights purchased. Best of all, they receive this payout regardless of market fluctuations.
The company behind MiningFriend is Stonewell AS, which has its headquarters in Norway under Swiss management. Stonewell AS stores its information in Switzerland. Users benefit from the most advanced data protection law and the neutrality of Switzerland. They enjoy a high degree of location and supply security in a country that is economically and politically stable. Overall, MiningFriend enables users to benefit from the good reputation of Switzerland.
MiningFriend Briefly Explained
Mining is essentially a reward system to ensure the blockchain operates as designed. It operates on the process of using computing power to process transactions, secure the network, and keep every party on the blockchain synchronized. The network of computers is a huge data center but designed to be fully decentralized and managed by miners operating across countries with no single individual having control over the network. The process of confirming transactions or creating new bitcoins is referred to as “mining”—equivalence to gold mining.
Different From Gold Mining
Contrary to the principles of gold mining, Bitcoin mining provides a reward in exchange for useful services required to operate a secure payment network. Once all the supply of Bitcoins is mined, which may not happen until 2040, miners are still required to confirm transactions through solving cryptographic puzzles. The more computing power accumulated the more chances to solve the puzzles and receive a reward. In other words, the larger the network, the higher the potential income.
The Blockchain Revolution
Blockchain is the technology behind cryptocurrencies. It is a decentralized database, distributed to all participants in the network. Figuratively, the blockchain database is a ledger that contains all transactions made on the blockchain.
The blockchain is secured by a consensus mechanism known as the “Proof-of-Work.” During the mining process described above, specialized computers use their computing power to solve extremely complex computational tasks. If the solution is correct, a miner gets the right to put the next block of data in the chain. Once the network confirms that the problem has been solved correctly, a new block of data with the included transactions and the hash value of the previous block is added to the blockchain and the successful miner is rewarded.
The more computing power a miner has, the more transactions to confirm. The profit of this activity is proportional to the resources used such as hardware, software, and electricity. The ratio of input and output is linear. The more resources a user spends, the higher the daily production, and the higher the yield.