What is Cryptocurrency Mining?
Cryptocurrencies are issued by blockchain networks that are decentralized networks. To remain decentralized blockchain incorporates consensus mechanisms such as Proof-of-Work to verify transactions on the network.
Nodes participate in a blockchain to solve encryption puzzles in order to verify transaction authenticity. In return, the blockchain issues new cryptocurrencies, therefore the verifying nodes are called miners.
In usual cases, mining requires the use of machines that have computational power. When the Bitcoin blockchain was first introduced, the required hash rate or computational power was not massive. Therefore, miners were able to use personal computers and GPUs to mine new BTCs.
However, as the Bitcoin network demand increased miners had to upgrade to mining units that were able to generate more hash rate such as ASICs and other latest machines.
There are also new blockchains that require a mining process, such that miners can use software such as browsers and mobile applications to verify transactions and mine new digital assets.
What is Browser-based Cryptocurrency Mining?
Browser-based cryptocurrency mining was introduced in 2011 when BitcoinPlus.com was first launched. At the time, the Bitcoin blockchain was limited to a few tech echelons. Therefore, the idea of mining Bitcoin blocks using websites such as browsers quickly became popular. However, after a surge in 2017 browser-based mining is gaining popularity once again recently.
The main reason for popularity of this application is on account of JavaScript-based application programming interfaces (APIs) and publically used machinery. However, it has created an issue of malicious usage of browser-based mining services.
Once cryptocurrency transactions are verified on a blockchain network they are added in the form of block-based records and remain immutable. This ensures security for a blockchain network that allows miners to keep generating new blocks.
How does Browser-based Mining Work?
Developers can install mining code in a browser application that allows it to solve encryption puzzles using mining power. This type of mining process leverages the online traffic on a browser application that in turn generates mining power to verify transactions. In this manner, miners can reduce energy bills and the cost of mining equipment.
Browser-based mining has various advantages that allow investors to generate additional sources of income. At the same time, there is a considerable rise in the amount of malicious mining scripts that are installed on the browser applications of unsuspecting users without their knowledge or awareness. This type of mining malware is called cryptojacking.
It takes place in the form of a JavaScript code that is sent to a browser app or website. In order to avoid such as situation, the users must refrain from visiting malicious sites and avoid granting permissions to installed applications.
How to Use Browser-based Crypto Mining?
Using browser-based cryptocurrency mining is a process that anyone can use by installing third-party services. Here are some simple and easy steps to utilize crypto-based mining:
- Look for a third-party services provider such as CryptoTab Browser.
- Create an account and complete the verification process.
- The browser will automatically start mining cryptocurrencies in the background and add generated rewards to the user account.
- Account holders can turn the mining option on and off and adjust preferences from the settings button.
- Users have to connect a cryptocurrency wallet address to the browser-based mining application to collect mining rewards.
- Applications such as Brave browser allow users to interact with various DeFi protocols such as decentralized applications, Web 3.0 games, and DEXs, in addition to crypto mining.
- Different browsers have support for specific blockchain networks such as MetaMask operates an Ethereum-based decentralized application.
- In some cases, users can add more dApp support by downloading additional extensions on a browser application.
Advantages of Browser-based Cryptocurrency Mining
Browser-based mining does not need expensive hardware that can require considerable energy input and increase the cost of operation.
Browser-based mining is accessible to everyone who has a computer or laptop and active internet connection rather than using specialized hardware such as ASICs.
Browser-based mining does not require miners to participate in a liquidity pool. In this manner, they are able to gain more autonomy and independence.
Conclusion
Browser-based mining offers various advantages. At the same time, it also entails various benefits such as security concerns regarding the main server, reliance on a secure socket layer, and unauthorized access.
