The essence of crypto mining is that computers located in various places around the world perform calculations and thus generate new blocks of the blockchain. This system is compared to a big book containing all the records of what is happening with cryptocurrency. It is the platform on which the operation of any cryptocurrency is based.
Mining the most popular cryptocurrency – Bitcoin – is no longer possible without special expensive equipment. If previously even a home computer with a powerful video card was suitable for this, now industrial computing power is required.
The fact is that there cannot be more than 21 million Bitcoins. Most of them have already been generated, and more and more capacities are required for each new Bitcoin. The miner’s business is essentially processing large amounts of electricity in exchange for bitcoins.
Helium hotspot mining
Helium hotspot mining has really started to take off recently due to how insanely profitable it is while having a low startup cost and a compact miner that produces no noise or heat.
Helium is a distributed network of long-range wireless hotspots, this Kerlink hotspot miner enables anyone to own and operate a wireless network for low-power Internet of Things devices.
The Helium hotspot mining however provides hundreds of square miles of connectivity and can transmit data at a fraction of the cost of a cellular network, because helium uses an open-source Long architecture, which combines the Lora WAN wireless protocol and the Helium blockchain.
Hotspots also act as miners on the Helium blockchain so that its owners can earn a new cryptocurrency (HNT), for building the network and transferring IoT device data.
The helium hotspot mining goal is to create a blockchain-powered network for the Internet of Things devices which will help in creating what they call “The People’s Powered Network”.
Knowingly, Helium is a global, distributed network of Hotspots that creates public, long-range wireless coverage for Lora-enabled IoT devices, so its network is a physical wireless network that succeeds based on the amount of reliable coverage it can create for users deploying connected devices on it.
And as such, a required working algorithm was built for this case.
Looking at Proof-of-Coverage, it takes advantage of the unique, undeniable properties of radiofrequency to produce proofs that are meaningful to the Helium mining network and its participants.
The Hotspots produced from helium mining are compensated in HNT, which is the native cryptocurrency of the Helium blockchain.
Helium miners also use less than $1 of electricity per month while mining makes it a go-to for people that want to make easy passive income from home.