Cryptomining — the procedure of mining cryptocurrencies into a network by assembling a given set of mathematical calculations. And just like any other mining industry, Crypto mining comes with a particular set of challenges.
Above all, You can use crypto mining as a readily valuable business venture. But, it’s very crucial to know the three major challenges of crypto mining and what are the solutions.
Challenge #1 High Energy Costs
Cryptomining requires an extremely massive power output, which will cost you high electricity bills. Now, this can become problematic for many miners and their pockets.
There are two solutions that Crypto miners can try according to their situation to solve this.
Crypto miners can select less power-intensive protocols, if possible. For example, Proof of Stake (PoS) consensus that protects networks via staking of crypto. Nowadays, Cardano and Ethereum are leading this shift.
Crypto miners can also do crypto mining at mining facilities and mining data centers that use renewable hydroelectricity and solar energy. Mining firms like Hydrominers and Burency help here in high energy costs by providing mining activities via hydroelectricity, and their mining plants are available there around colder regions to decrease costs.
Challenge #2 Vulnerability to Cryptojacking
As soon as it comes to digital platforms, one major issue that occurs is the security, privacy of the Crypto miners.
Hackers are sitting here all planned to profit themselves by harming others. Cyber thieves are much more dangerous than any other thief. Because they can misuse our private data.
Unfortunately, there is not any such conventional solution to combat this challenge. Yet, a modification by Digibyte in PoS that uses a combination of five protocols on the blockchain platform is a strong resource.
However, it doesn’t ensure full security. Yet, Crypto miners can use this to secure themselves.
ASICs can solely crypto mining a specific cryptocurrency. ASICs are so influential that once a particular ASIC is here, then, it’s sometimes difficult to mine without one.
Nonetheless, it is a major development in the crypto industry. Meanwhile, it is also occurring as a problem. It is because many crypto miners are influencing the way and manner in which ASICs are being created or designed. And since ASIC manufacturers are few in numbers. Thus, the crypto mining space gets centralized.
However, there are two reasonable ways to tackle this challenge:
- Firstly, Decentralizing the manufacturing process for crypto mining.
- Further, developing a new and effective hash algorithm that would effectively wipe out all existing ASIC crypto miners.
In the end, It’s never too late to start cryptomining. All you need is to keep your costs down along with defenses up, and then earn the rewards.