What is mining and why is it important?

Cryptocurrency mining is an activity that secures a blockchain network. Miners dedicate vast amounts of computing power using CPUs, GPUs and specialized hardware to solve the hash that belongs to the next block of the chain. This is called ‘finding a block’ and miners earn a reward for their effort. Miners compete against each other to find the most blocks. Those who commit more hashing power will find more blocks in a statistically deterministic fashion. For TUBE and most other CryptoNight coins, the difficulty of finding the next block is adjusted continuously so blocks are found roughly every 120 seconds.

Mining secures the network because a malicious actor will require the majority of the network hash rate to attempt to manipulate transactions in a so-called ‘51% attack’. The bigger the network, the more expensive it is to execute such an attack. Additionally, more miners mean that the block reward will be shared among more users, reducing profitability and increasing the production cost and therefore arguably the inherent (thermodynamic) value of the coin.

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