The process of cloud mining is highly allegorical to real mining. In using the cloud to generate cryptocurrency, there is the involvement of a large number of intermediate factors and steps. Since the explanation of the steps requires technical awareness, the various technicalities involved and their underlying principles might sometimes seem esoteric. However, using the analogy of real mining, which is tangible and hence makes a direct connection with the experience of everyone, it comes in handy when attempting to delve into the intricacies of cloud cryptocurrency mining.
For starters, getting a handle on the basic procedure of getting the energy to our homes via mining would be opportune. The coal, natural gas or petroleum is extracted from the bowels of the earth with gigantic operations of mechanical, electrical and electronic (in modern times) rigs. These rigs refer to the entire system of machines that are run by humans to dig down and produce raw materials efficiently. The efficiency depends on several factors like the geographical nature of the region, which can be the open sea in the case of off-shore sites where crude oil or natural gas has been found, or mountainous hydroelectric projects that harvest the energy of water flowing down the terrain, and anything in between.
How these rigs become profitable is by supplying the product of their physical operations – be it in refined or unrefined form – to the consumers at the end of a long and complicated supply chain. Since all natural resources are unrefined at the point of extraction, they are delivered to refineries that in turn distribute the finished consumable commodity to large companies or through their own retail networks. Governments and public utility providers are allotted their quotas so that nations do not run out of power for the foreseeable future. Finally, the end consumers – us, to be precise – can use the output of the rigs to power our homes, buildings, vehicles and everything contained therein.
Now, in this entire value chain, the existence of each intermediary is necessary and defined. Big corporations or socialist governments might own some or all of the process, but the essential steps do not change much across owners or nations. Thus, it is logical to envision a system that assimilates the tasks of successive steps into more efficient processes. While the size and scope of the natural resources industries preclude this happening in the near future, technological cryptocurrency mining has achieved it in the past decade already!
Inexhaustible Supply Of Crypto Currency Through Cloud Mining
Relating the physical processes of mining to cloud mining, rigs are arrays of processors, notably the graphics processing units that were (and continue to be) the norm for gaming enthusiasts, which are ready to perform calculations which lie beyond the scope of personal computers or outdated systems. When a group of such processors is networked through servers to maximize computational capacity, a cloud is formed.
Since the GPUs operate over a wide range of processing speeds, these GPUs can be networked to look for answers to complex mathematical problems and run hashing algorithms that verify financial transactions. Hence, in our analogy, the information to be obtained by carrying out floating point calculations is the natural resource, while the GPUs linked together for that purpose are the rigs.
Just like real mining rigs, cloud mining rigs require power to run and quite advanced cooling systems to keep their temperature within operating limits. Also, GPUs can be overclocked, which means that they can be programmed to perform calculations faster than their rated speed. This practice generates excess heat and requires closely monitored high voltage, though, and that is why setting up a rig is not for everyone, just like the real mining rigs that require significant investment that takes a lot of time to recoup.
Cloud Mining Rains Down Crypto Currency
By setting up industry level servers and infrastructure, large cloud mining operations become profitable in a short amount of time. Bitcoin surpassed all estimates of its value by using the blockchain algorithms for verifying and securely recording financial transactions, and most cryptocurrencies that have been generated through cloud mining are direct derivatives of the same principles. When the process of cloud mining results in an output that is verified to be of value to solving the overall mathematical problem, the rig is awarded a share of the cryptocurrency which more than covers the cost of power and infrastructure, taken as an average over time.
Becoming part of this wave of the future is already resulting in genuine knowledge being created while yielding good dividends for stakeholders. Economies of scale are important in getting the faster return for your investment, and HashGains seeks to maximize returns while reducing payback period by deploying consistent processor arrays and support systems like servers, operational parameter maintenance, data security and verification of genuine cryptocurrency produced through cloud mining.