What is an excavator and how it works?
The excavator can be a computer or a single graphics card. Most often these are sets of graphics cards or ASICs. They must meet the relevant requirements, especially in terms of power. The process of “digging” is approving new blocks and attaching them to an existing string – the so-called blockchain. In each block new transactions are recorded, but also new coins are emitted. To dig up a new block, you need to solve a cryptographic problem. This is finding a sequence of characters, the so-called hash. The performance of excavators is measured in hashes per second (H/s).
Digging cryptocurrency is nothing more than confirming a transaction in a dispersed database. To put it simply – it consists in confirming new blocks and attaching them to the existing blockchain. Calling this activity “digging” is connected with the analogy of “digging gold” existing in this case.
A block is the place where all new transactions are recorded, but also the area where new “coins” are issued, if foreseen in the protocol. In order to excavate a new block effectively, the so-called cryptographic problem should be solved. It consists in finding a sequence of signs, i.e. the so-called HASH, which meets the appropriate equation. Considering the fact that the cryptographic protocol is open-source – at any time you can check the problem that is being solved. Output data include: transactions and hash of the previous block. Persons involved in mining (digging) announce in the network the solution they found, while other participants of the process check its correctness. If this solution is approved, the new block is considered dug out and the person responsible for it receives a certain number of digital coins.
The most popular methods of digging are: Proof from Work and Proof of Stake.
Proof of Stake is not about solving complex mathematical problems. This method depends heavily on the amount of “coins” kept on the “switched on cryptocurrency wallet”. It is the algorithm that judges and finally decides which of the miners will confirm the transaction and receive commission from it. The decision of the algorithm depends on many factors, including the number of coins in the portfolio. To put it simply, the more coins someone has, the greater the chance of earning a profit from digging. This method, however, does not require the purchase of appropriate cryptographic equipment (graphic cards, etc.).
The Work Proof consists in extracting tokens by performing appropriate mathematical calculations using devices called excavators.
The cryptocurrency excavator is a computer or, more often, a graphic card used for extracting digital coins. The performance of excavators is measured in hashes per second (H/s). Excavators are built on the basis of a set of graphics cards or dedicated ASICs.
Cryptovalut excavators – profitability
Important is the fact that BTC requires us to dig on highly specialized hardware, while other cryptocurrencies can be extracted on the graphics card. And if so, the costs of investment in the possibility of digging Bitcoin are much higher. Also important is the factor of electricity consumption, which is necessary in large quantities for the excavator to operate efficiently and effectively. It should also be compared with the price of the cryptocurrency itself, which is different practically every day. Cost-effectiveness therefore depends on many issues and each individual excavator can only be profitable once a given currency has reached an appropriate value.
Is it worth to mine cryptocurrencies?
Considering the technological aspect – definitely yes. Because we are taking part in a real technological revolution that changes many industries – it is hard to say when the ability to configure a blockchain technology node will be useful.
Considering the financial aspect, you can say it depends. Consider the scale of the difficulty of digging virtual token data. In addition, you should consider the power consumption, as well as the relatively high cost of purchasing “mining equipment”.
The price of cryptocurrency excavators
Again, it depends on what kind of cryptocurrency we want to mine. Most attention is paid to Bitcoin, which is by far the most expensive. The equipment on which the BTC is dug is the most extensive and requires from us an expense of several thousand zlotys. Cryptocurrencies digging has become extremely popular, and consequently, the prices of equipment have increased significantly. Stores and wholesalers often do not have enough excavators in their resources to satisfy the needs of all customers, so the waiting time for them also increases.
Cryptocurrency excavators online
It is possible to extract cryptocurrencies via the Internet. This creates special browsers or plugins for the more familiar ones, e.g. Firefox or Chrome. In a browser, it works in such a way that the script extracts the tokens in the background. The user can set the speed at which the excavator should work.
The cryptocurrency excavators for phone
Like on a PC, it is also possible to dig a cryptocurrency on a smartphone. However, here you also need a phone with a powerful processor, and the best thing would be if it was a piece of equipment that we do not use every day. There aren’t many unnecessary applications that slow down the work of the processor.
The cryptocurrency excavator – calculator
Calculators are used mainly to calculate the profitability of digging the most popular cryptocurrencies converted into fiat currency. Most of them calculate daily, weekly, monthly and annual output (including earnings). Again, it should be added that Bitcoin is the leading one here, and many calculators are adapted to excavators extracting BTC.
Cryptocurrency excavator – 2019
In 2019, digging became very common, but electricity costs are not decreasing, and cryptocurrencies values are on the contrary. The extraction from the graphic card became so unprofitable that many large mines had to be closed.