These miners compete against one another for the opportunity.
I want to start mining litecoin on apple software#
In mining, participants called miners are required to utilize a combination of hardware and specialized software to solve complex mathematical puzzles in the race to resolve the next block of transactions to be added to the network’s ledger. Now that we have briefly covered the rationale for mining, let us investigate mining Litecoin in greater detail. In Litecoin, the token LTC is used for such compensation and they are derived primarily from mining Litecoin. Thus, it is more accurate to say that the potential reward in the form of tokens drives people to contribute resources. A network requires not only electrical and computational contributions but also work such as translation, marketing, bug testing, etc.
Secondly, mining activities motivates people to participate in the running of the network. Would you behave erratically if your money and assets are at stake? Very unlikely. They are meant to tie the security of the network with the value of the token and incentivize the contribution of resources to the platform.īy tying the security of the network to the token value, bad actors will disrupt the ecosystem as the damage done will devalue their token holding’s value. Regardless of the method, the purpose of each is similar. There are many other systems such as proof of stake, pre-mined tokens, consensus validation among many others. Without this context, the mining process would seem redundant and confusing.įirst off, mining is part of a proof of work system used to secure and maintain the running of a blockchain network. To understand why one should mine Litecoin, it is imperative to first understand what crypto mining is. Therefore, we shall be objective and look at the facts and processes surrounding Litecoin mining instead of shilling the token. This article does not promote mining and takes a neutral stance when broached with the subject. It is difficult to give a definitive answer as the motivations to mine cryptocurrencies can stem from a variety of reason, many of which has nothing to do with personal gains. Out of all the mineable cryptocurrencies in the market, why should a person consider Litecoin mining? The token valuation is, in turn, crucial to endeavors pertaining to mining as we shall explain in detail further down this article. In its history in the market, Litecoin has seen tremendous growth in its valuation, reaching an all-time high of approximately $375USD in December of 2017. Similarly to bitcoin, Litecoin uses proof of work to secure the network and incentivize participation through a tokenized reward system. To turn this bold new idea for private and borderless payment into a reality, the project was built off the Bitcoin client using the Scrypt algorithm.
I want to start mining litecoin on apple how to#
How To Mine Litecoin: Proof Of Work System In theory, anyone can easily mine Litecoin on windows. Its utility objective was born from the need for privacy protection and seamless global transactions not readily available in the traditional financial systems. For example, Alice can send funds to Bob which resides halfway around the world quickly and securely without prying eyes or restrictions from financial bureaucracy. This enables individuals to utilize the Litecoin tokens for private peer to peer transactions. The cryptocurrency project is designed to be an open-sourced platform. As a cryptocurrency project, Litecoin was conceived in the year 2011 by Charlie Lee, a former Google and Coinbase employee. To start, Litecoin is a cryptocurrency with the market ticker denoted by the initials LTC. Before we get into the details of Litecoin mining, let’s go into an overview of Litecoin and the significance of its utility when discussing Litecoin mining.