ELI5: What was Honeyminer?
Honeyminer was an automatic multiple coin mining program that pays users to use their spare computing power.
Honeyminer leveraged a variation of the concept of micro mining, w...
ELI5: Cryptocurrency Micro Mining
Micro mining is a cryptocurrency mining modality where large quantities of small, and low computing power, devices perform the mining work.
The idea stemmed from concepts relat...
Does cloud mining make financial sense?
Remember the Old West, when naive speculators often bought maps to gold mines hoping for quick riches?
Today, the basic question cowboys used to ask themselves still makes sens...
Who is Genesis Mining?
Genesis Mining is a cryptocurrency mining company founded in 2013.
The company runs the Enigma mining farm in Iceland (since 2014) and the Thor mining farm in Sweden (since 201...
ELI5 What is cryptocurrency mining?
Mining is the process by which cryptocurrency transactions get verified.
The process got its name from the fact that once a block is verified, whoever solved it will earns som...
Proof of Elapsed Time (POET) Summary [Cryptocurrency consensus mechanisms]
In this poetically named consensus mechanism, network participants prove that they have slept for a random amount of time before being able to mint a block. POET was released by Intel in 2016 and was originally aimed at trusted computing using Intel CPU’s. A special instruction set called Software Guard Extensions (SGX) allows programs to […]
Proof of Trust (PoT) Summary [Cryptocurrency consensus mechanisms]
In a Proof of Trust system, users in a network gain trust as they participate in special activities within the network. If a user tries to defraud the system, the trust is lost and they lose an equivalent amount in value (the cryptocurrency or token employed). In a Proof of Trust system, “trust” is staked […]
Proof of Space Time (PoST) Summary [Cryptocurrency consensus mechanisms]
Physicists have been discussing spacetime since the early 1900’s. A very smart person, by the name of Albert Einstein, modeled space as 4 dimensions rather than just 3. The axis were then X, Y, Z and …. time. Fortunately, you don’t need to understand Relativity Theory in order to grasp Proof of Spacetime! PoST Fast […]
Proof of Location (PoL) Summary [Cryptocurrency consensus mechanisms]
In a Proof of Location consensus algorithm, users’ geospatial coordinates are accounted for as proof of value. This kind of algorithm is usually employed in cryptocurrency geomining systems. In a geomining application, users earn rewards for being at a certain place at a certain time. If, for example, a company wished to gather participants for […]
Concepts In This Page
A process or system by which multiple parties are able to reach consensus. In the context of cryptocurrencies, it's the process which allows for everyone to agree on everyone else's money balance. E.g. Bitcoin employs Nakamoto consensus via PoW mining.
Proof of Stake
Proof of Stake is a consensus mechanism in which block verifiers prove their commitment to the network by staking their coins instead of by proving they performed some work (contrast with Proof of Work).
Staking is the process by which users delegate their Proof of Stake voting rights to a staking pool. The pool then verifies transactions on the users' behalf and, similarly to mining pools, share some of the profits back with the stakers.
Cryptocurrencies have sparked renewed interest in the search for sustainable energy sources, including hydro mining and solar power.
Hydromining is the practice of using water to generate electrical energy required for cryptocurrency mining.
Passive Income refers to obtaining financial returns without requiring work by the investor. In cryptocurrencies, investors usually seek passive income by Staking, lending or via DeFi.
Micro Mining is a kind of cryptocurrency mining where network participants each contribute a tiny amount of work into the mining process, receiving micro rewards against their efforts. Typically used by tiny devices or users which do not wish to invest into a dedicated mining setup (such as mining using CPU spare time).
Mining is the collective and decentralized effort performed by network participants in order to verify cryptocurrency transactions. Participants receive a reward for their work, which serves as an incentive for mining activity.
IoT stands for Internet of Things - a concept where large numbers of small devices are connected to the internet in order to exchange information.