What is Cryptocurrency Mining?¶
Cryptocurrency Mining is the process of extracting Cryptocurrencies for securing and verifying transactions made on the blockchain.
Miners use computers to work on computational puzzles that change their difficulty depending on the number of miners on the network. The difficulty changes to enforce that the blocks are mined at similar time intervals, also known as the Block Generation Time. Each block generated produces a predetermined amount of cryptocurrency to the individual or party who found the solution to the puzzle. This reward is commonly known as the Block Reward and is coded to reduce its emission over time.
The Loki cryptocurrency can be mined through the CryptoNight Heavy hashing algorithm, which is designed to be ASIC Resistant.
A mining pool is a hub where a group of miners share their processing power to the network. The rewards are split equally based on the amount of hashing power each individual adds to the block. In the early days of Bitcoin mining it was viable to mine as an individual. However, because there now exists tens of thousands of miners it has become less viable to mine individually due to the share of each individual being minute compared to the overal hash of the network.
Loki has a number of different mining pools to choose from:
Mining Loki in a mining pool requires the use of specific software such as XMR-STAK or XMRig.
The following are useful guides for mining Loki:
- How to mine Loki (CPU/GPU)
- How to use XMR-STAK: Guide on how to use XMR-STAK mining pool software.
- How to use XMRig: Guide on how to use XMRig mining pool software.
- Video Guide (CPU/GPU):
The following are useful guides or resources for mining: