01/20/2022
What is cloud mining?
Cloud mining is a process of generating cryptocurrency by using computing power rented from third parties (cloud mining service providers). Each miner actually participates in a "mining farm" (a remote data center dedicated to cryptocurrency mining), buying a certain amount of "hash power" from a service provider. In exchange, the facilitator will grant them a reward proportional to the amount of hashpower purchased by the miner.
Since mining operations are carried out through cloud computing, miners do not need to worry about computer equipment maintenance, noise, heat or energy bills
In general, miners can choose between 500 and 1,000 gigahertz per second contracts for periods of up to one year. (1 GH/s = 1 billion hashes per second.)
How does a mining pool work?
All participants in a mining pool share their computing resources to increase the likelihood of blocks being generated in a cryptocurrency blockchain - which requires solving complex cryptographic puzzles. If participants are successful, they are rewarded, usually in the form of cryptocurrency they mine. The amount they receive depends on the percentage of their processing power or work relative to the entire pool.
