FAQ

HOW DOES MINING CRYPTOCURRENCIES WORK?

A miner is a service provider to the network of other users of a cryptocurrency.

Basically, the miner ensures that every transaction made in the network is entered in

a so-called distributed ledger. All miners agree on a single valid ledger.

So no user can fake transactions, since the information on them can not be changed afterwards, as it is stored in a publicly accessible ledger.

For this service, one miner receives a block reward in the respective cryptocurrency after each block.

WHAT IS THE “BLOCKCHAIN”?

As the name implies the blockchain describes  a chain of blocks.

Each block represents a record of all transactions made during the block time in the

network of the currency. Depending on the cryptocurrency, all blocks have a constant block time or the block time varies dynamically.

So the blockchain grows over time, as more blocks get added to it.

WHAT IS AN ASIC MINER?

The acronym “ASIC” stands for “Application Specific Integrated Circuit”

ASIC Miners are highly specialized computers designed for mining cryptocurrencies.

In most cases, an ASIC consists of multiple hasboards, processors and passive heatsinks, and a controller board that drives the hashboards and connects to the Internet.

Commercial fans ensure sufficient cooling, because the hashboards sometimes have a considerable power consumption.

CAN I MINE CRYPTOCURRENCIES MYSELF?

The answer is simple: Yes, you can! All you need is a miner, power and internet connection via ethernet cable.

ASICs are designed for the mining process, so handling them is easy via a web interface.

WHAT DOES "AFFILIATE" MEAN?

An “Affiliate” is a partner who promotes a company’s products and services by making recommendations.

In practice affiliate links are shared in social media, which link directly to the website of said company.

In return the partner receives a part of the proceeds.

The affiliate program of Crypto Supply, for example, pays 3% of its sales to its partners.

All sales made via an affiliate link are tracked automatically and the affiliate receives a monthly payout of his or her share.

WHAT IS A MINING POOL?

If you want to mine cryptocurrencies you usually need a mining pool.

Why? In reality with many miners competing for the block reward the statistical probability is very low to collect the reward with your individual miner.

In a pool, many miners join together for mining. The payments are then paid proportionally to the hashpower of the respective miner.

A merger with many miners allows constant payouts as the probability increases that one of the many miners “solves” a block.