What Is Mining In Blockchain explains in simple terms what mining is.

A Mining Farm is like a house where mining is carried out. In the Blockchain industry, it’s called Mining Farm… farm because blocks are being “pursued, discovered and reared”… this process of discovering blocks is what creates the cryptocurrency you are looking for.

In this farm, you don’t see pens and all the other equipment in a typical farm.

What you see are these?

  • A Bitcoin wallet… a mobile app, hardware device or a web application with password protection where you store Bitcoins or cryptocurrency.
  • A mining software program which makes the mining process possible. For example, BTC miner and CG miner are softwares that are installed in ASICs (specialised computers for mining cryptocurrencies) to carry out mining activities.
  • A mining rig or powerful computers. ASIC machines are the most common. These computers carry out the mining process by allowing the mining software software to run in them.
  • Membership in a mining pool. This is a structure to accept group of miners who pull their computing power together carry out minning. They do the work together and enjoy the reward as well.
  • An Internet-enabled computer Power source. One of the challenges of mining or cryptographic activities is the consumption of energy. A food source of energy is needed to peer a mining farm.
  • Cooling System. Both passive and active cooling system is needed to cool the mining farm. Why? Huge amount of heat is released during the process.

Few difficulties experienced in a mining farm.

  • Processing speed of computers

This is a major problem faced when setting up a mining farm. CPUs and GPUs are good computers for running several kinds of operations but not enough to handle mining processes.

So, ASICs and other sophisticated computers are used instead of CPUs and GPUs.

  • Power consumption

There’s a rising global concern on the energy level consumption of mining farms.

However, I feel different about it. While it’s true that the energy required to power mining farms is high what do we say about that of traditional banks?

Can we compare the energy used here with that used to print new money, carryout banking activities – online and offline?

More mining farms are being built to meet up with global demand for cryptocurrency.

So if you want to build a mining farm, it’ll be good to do your research before you in go ahead with your project.