Everyone has heard the term cryptocurrency being bandied about but how much do we really know about this virtual currency and where does it come from? The perception of some may be that it a currency only used by the underworld for shady deals involving ransomware and other illegal activities but there is more to cryptocurrency and it does have a place in the legal world. Crypto coins are controversial as the power to make this virtual currency is given to the general public and not monitored by a central bank institution. They behave like gold nuggets – once you own crypto coins you can use them to buy items online or just hang onto them in the hope that they will increase in value.
In this article we will take a look at how some businesses are leveraging cryptocurrency mining to get their hands on this elusive magic internet cash.
So, what is cryptocurrency mining?
Each time a transaction is performed with cryptocurrency, an entry is added to a distributed database called the blockchain. (The blockchain is a public ledger that records all crypto coin transactions)
Cryptocurrency miners are simply computers which are connected together within the cryptocurrency network and it is the job of the miner to provide book keeping services to the crypto coin network. This is done by taking the information in the blockchain and solving mathematical equations which ensure that the information in the blockchain is correct and secure. In return for the computing power that a cryptocurrency miner offers they will be “paid” in cryptocurrency. ( This could be a newly mined coin)
The computing power needed in order to effectively mine the cryptocurrency bitcoin is vast ( ref article in The Register), not to mention the electricity and cooling involved. So, if you are thinking of investing in a cryptocurrency mining rig, which will be working for you 24 x 7, why not think about placing it in a data centre where all the power, cooling and connectivity will be taken care of.
Caveat emptor : Have a read of this article before investing in a an expensive mining rig – China are upsetting the apple cart.
Datanet’s London edge data centre provides the highest levels of resilience and plenty of power, cooling, connectivity and security. Click here to find out about our Crypto Mining & Hosting offers
Call 01252 810010 to speak to Jeremy today