What is mining?
Bitcoin mining is the act of running software with specialized hardware in order to validate Bitcoin transactions for the public ledger of the Bitcoin network, also known as the blockchain. The Bitcoin network compensates these “miners” for their effort by releasing bitcoin to those who contribute the needed computational power. This comes in the form of both newly issued bitcoins and from the transaction fees included in the transactions validated when mining bitcoins. The more computing power you contribute then the greater your share of the reward.
What is mining hardware?
Better known as ASIC miners (application-specific integrated circuit) are specialized microchips designed with the specific purpose of mining Bitcoins. ASICs designed for Bitcoin mining were first released in 2013 and began to mine at unprecedented speeds, while consuming much less power than FPGA or GPU mining rigs. There are now several reputable companies that have established themselves with excellent products.
What is mining software?
Mining software is just as important as the hardware. The main function of the software is to deliver the mining hardware’s output to the rest of the blockchain. Bitcoin mining software oversees the input and output of your mining hardware while also displaying statistics such as hash rate, temperature, fan speed and tempo of your miner. If you are an individual miner, bitcoin mining software connects your hardware to the Bitcoin network. If you are mining with a pool, the mining software will connect you to a mining pool.