There are different values and user demographics for every cryptocurrency, but one thing is uniform to all of them: they all need miners. Who are these miners? They are actors necessarily involved in every transaction within the digital economy. They take on the technical aspects of a cryptocurrency going into the circulation of the crypto, writing the transaction in the public ledger called the Blockchain.
More than this fact, however, they also make sure that the Blockchain is stabilized and secure the networks, so no individual is harmed in the transaction process. Thus more investors would trust the system of the crypto industry. Since those benefits are hard to do and Blockchain is not centralized to apply it to every transaction, miners conduct a fee to those who avail of their service. Alongside, the system rewards them for getting a trade done, which is usually in the form of a crypto token.
One misconception is that miners create new coins, but this is far from true. They only work on the crypto value available and deem their rewards through the reserves of the Blockchain. But more so, they invest in their hardware a lot, and some individual miners switch to joining a pool server because of how hard it is to find people who would avail of their service. For instance, mining servers like the Filecoin (FIL) mining server make it a point that beginners in the industry also strive.
- The Pros
There many pros to mining. The first is with the free use of your assets. You can expand it and better manage it since you know the ins and outs of transaction processes. You will be able to see through a transaction and estimate the true value of your benefits when engaging in that transaction. But also, you are barred from doing anything unfair to the other party because another miner is there to provide for checks and balances. You only become strategic with what transactions to take and not.
The second one is that you are more secured of counterfeiting practices. This pro account applies to those who are not miners. You can better avoid the problem of counterfeited money and lying in the digital space through miners.
Then, thirdly, the fee is more affordable when processing a transaction. Compared to traditional banks, you do not take out as much money in your crypto wallet to process a transaction than in the converse. Also, your identity is always secured, which leaves no space for the hackers to infiltrate in your account, because a centralized system is easier to take over than when there are many peers who work on securing the networks of the system.
- The Cons
For the cons, it can be quite draining to go over the process of mining, because the technical part of mining is simply not for everyone. Moreover, mining requires a lot of electrical power, which can too much for someone who is just starting out making money in the industry.