Mining is a lucrative venture in the blockchain, it accounts for the majority of the transactions done in the blockchain if not all of it. What started as a new idea birthed by a person or group of persons under the identity of Satoshi Nakomoto has grown to be the force it is today. Total market cap value of the Bitcoin is near $400bn although not up to the global market capitalization of the forex or gold market which stands at over 1 trillion USD, it’s been speculated by various sources to rise to this point in the nearest future.
Today, due to the craze and excitement over DeFi, of the feature of staking a coin and gaining immense monetary value and rebate, we’ve seen quite the rush by new users, enthusiasts and newbies into the blockchain ecosystem fueling the hype and skyrocketing price of new coins, a record 3 BTC for 1 YFI coin!
Everyone wants to take part in the DeFi market, the hype is real. And a whole lot of people are interested in mining cryptocurrencies and Bitcoin equally. CryptoMining is the ability afforded by some selected members of the blockchain community which solves complex mathematical problems to arrive at a consensus, a situation known as the Proof of Work {POW} concept.
Often times, it’s commonplace to find mining of only one single coin and not multiple at a time, this pose as problem in many ways as follows;
- Value: What if the value of the mined coin drops significantly, what becomes of the enormous effort put into mining it in the first place.
- Variety: Where is the choice of coins and its varieties, allowing for multiple benefits from different coins.
- Cost effectiveness: The cost of mining one coin when channeled appropriately can mine way more than one.
Mining is by no means a cheap venture. The reader is expected to be aware of the cost implication of running his own Mining rig. The cost which comes in various forms from energy consumption to heat production and high demand for human time and attention lest nothing worthwhile will be accomplished. In fact we’ve got data centers that engage in shared power that helps investors, enthusiasts and generally anyone with interest in mining to take part in its operation no matter the cost.
It is in this stead that we’ve seen to the rise of cloud mining in various forms. We’ve got the faucets, the mobile Miners app all of which are time wasteful mechanisms and could go as far as damaging users’ devices due to the amount of dangerous malwares that are oftentimes characteristics of such `cloud mining” applications and softwares.
There is a need for an even much more effective solution to this lingering problem of cloud mining. A solution that will solve the following problems associated with mining cryptocurrencies especially as a beginner:
- Entry: Barrier of entry is a big factor in blockchain as an entity, how much more mining, barriers ranges from technicalities to set up to actual solving of the mathematical problem that would lead to transaction confirmation. You see, it’s a solid information that by no means is mining cryptocurrencies and Bitcoin a walk in the park.
- Cost: The cost of purchasing mining hardware is huge, it’s not a cheap venture in any angle, setting up a data center, buying ASIC and GPU gadgets will drain a low income earner who wishes to take part in the mining industry.
- Energy consumption: The amount of energy required to take part in mining is so enormous that countries opt in for the easy way out for individuals not to mine in the country, they choose to ban outrightly instead of regulating, this saves energy from depleting and reaching more end users.
- Heat: Heat generated by data centers and mining rigs is so enormous that these mining facilities are oftentimes situated away from residential areas. Brejcha one fine cryptocurrency proponents, co-owner of crypto trading platform NakomotoX uses the excessive heat caused by mining to grow tomatoes popularly called cryptomatoes
There exist certain companies that seek to solve all of these problems listed, while some have been quite progressive and have gone to establish themselves in the industry, others are big on their Whitepaper and empty on actual accomplishment. Amongst existing solutions, Multimine seems to have a lot of positive ratings as seen on their Facebook wall.
Further research into the company shows that they have been in existence since 2014 and handled by a team of experts who are well grounded in the crypto space, an essential ingredient very much needed in the industry. A unique attribute of the Multimine organization is the fact that the Multimine solution can be used to mine more than 1 cryptocurrencies as support for multiple coins exist in the system built.
For example they provide support for SHA-256, X11, EtHash, CryptoNight, Scrypt and more algorithms. There exist companies that offer cloud mining services but only few offer cloud mining services with multiple coin support.
The ecosystem is still at its infancy and more innovations are expected and welcome.
