Mining, is the process of acquiring new bitcoin and other cryptocurrencies by solving complex cryptographic problems or equations using miners, specially designed and equipped computers for the specific purpose of mining and also mining hardware. When such tasks are verified and confirmed by blockchain, then the miners are rewarded with blocks. These blocks are fragments that make up a bitcoin. After mining, the miners sell their bitcoins to investors or can store them in their wallets for future purposes like trading/exchanges, lending and even investing.
Mining hardware: The hardware you use for the purpose of mining bitcoin is referred to as your mining hardware. It could be your computer device CPU, GPU or any ASIC miner etc.
Hash rate: Hash rate is the speed a computer uses when carrying out a mining operation in the Bitcoin code. These computations for finding the blocks are mathematical algorithms and puzzles that a miner cannot just guess without a lot of computation. The number of attempts made per second is called hash rate or hash power. And this hash power or guessing attempts are made by miners who mine the bitcoin blocks. A high hash rate is profitable when mining because it increases your chances of finding the next block and receiving the reward.
Mining Pools : Mining pools are group of miners who contribute their hash power/mining resources together to solve cryptographic problems that lead to the finding and creation of new blocks/ bitcoins. The bitcoins/blocks that are found by the mining pool is shared among miners as rewards based on the hashrate contributed by each miner.
Mining Software : Bitcoin mining software works simotenously with mining hardware;
•It is the medium of communication with the bitcoin network and mining pool.
•Displays the statistics of hardware temperature, hash rate and other cryptographic informations.
Bitcoin Wallet : Bitcoin address that will be used to receive your mining rewards and payouts.
Cloud Mining : Cloud mining is the process of mining bitcoin utilizing a remote datacentres with shared processing power. This type of mining enables users to mine bitcoin or alternative cryptocurrencies without managing the hardware. The mining rigs are housed and maintained in facilities owned by mining companies and the customers simply needs to register and purchase mining contracts or shares