[Info] What is mining?

[sheepson]

[b]What is mining and how does it work?[/b]

Simply put, ‘mining’ is the process of breaking down blocks of encrypted data using processing powers such as your GPU or CPU. The Feathercoin network runs on these encrypted blocks, which carries various information such as transactions, as well as the amount of FTC in every individual’s wallet.

Everyone’s information is spread throughout the network, rather than one stationary source, which it makes it very difficult if not impossible to hack into the network to make malicious changes. This is because information is sent in every block, which as I mentioned, is encrypted. This is where miners come in. Each encrypted block must be broken down by miners. After this is done, that information then becomes verified. After “x” amount of verifications, the transaction becomes complete. As you can see, the only way to make a successful change in the network is to have over 50% to verify the false injected data.

Miners are needed not only to verify blocks (since the difficulty adjusts to work with even a very low network hash rate), but to prevent these 51% attacks. The more individual miners there are, the harder and more expensive it is for a malicious attacker to achieve over half the network hash rate.

By being a miner, you both help maintain and protect the Feathercoin network.

[b]How does mining make me money?[/b]

Yes, the important question: ‘How does mining make me money?’

When you or your pool break a block, you are rewarded with Feathercoins that come from one of two ways:

1- Transactions made charge a very small transaction fee, much smaller than what you would be charged from ordinary fiat transactions.
This fee is recycled and goes to the miners who put in their hashing power into running the network.

2.
For the time being, and for several years more to come, Feathercoins are still in the process of being “printed”.
There will be a maximum of 336,000,000 Feathercoins in existence, which won’t be achieved until approximately the year ([b]Anyone knows this?[/b]).
Until then, you are basically printing out the currency yourself and being rewarded with it.

Now is a very opportune moment to mine since there are still millions of Feathercoins to be created.

Feathercoins themselves already have spendable value, the merchants and store-base that accept Feathercoin are quickly expanding through our community’s efforts to publicize and promote Feathercoin.

You can also use one of many exchanges to convert Feathercoins into USD, EUR, etc.
From there you can use any options that the exchange offers in order to withdraw it as cash.

You can use our [url=http://calc.feathercoin.com/]Feathercoin calculator[/url] to approximate how much you’d make if you ran your miners for a day, after electricity costs.

Article made by aysyr.

[Markus1337]

I used this guide in my feathercoin android app, I did credit you, is that ok?

[sheepson]

[quote name=“Markus1337” post=“17811” timestamp=“1372265120”]
I used this guide in my feathercoin android app, I did credit you, is that ok?
[/quote]

Yes, you can credit aysyr, he wrote it! I only posted it ;)

[sheepson]

[quote name=“d2” post=“14498” timestamp=“1371175824”]
Recommend addition of [Info] to the thread title to avoid post seeming like a question that is waiting for an answer.
[/quote]
Only saw this now and i agree, i changed it!