Crypto mining is one of the most lucrative and preferred ways to own cryptocurrencies. It is not only cheaper but also more future-proof of any fluctuations in the market. However, it wasn’t always this productive, as earlier IceRiver KS3L was done on GPUs and CPUs. But due to technological advancement and development, it is no longer viable to mine cryptocurrencies on computers.
Today, highly advanced ASIC miners are used to mine cryptocurrency as they are super-fast and can handle complicated computations easily. While these ASIC miners are robust and capable, there are still few things that affect their profitability. Problems faced by ASIC miners and how to solve them? ASIC miners are the most advanced tool available in the market for crypto mining. However, there are still a few wrinkles that need to be ironed out to make it even more rewarding. High Energy Costs
A mining farm has hundreds of ASIC miners working together to mine cryptocurrencies. These machines require a significant amount of power to work efficiently and generate yields. This high power consumption results in higher electricity bills that cut down the profits. Also, most of the mining farms rely on traditional sources of energy that harm the environment.
This problem can be solved in two ways. The first is to use less-power-intensive protocols that tokens such as Ethereum and Cardano are using. These protocols cut down the power consumption but are costly and centralized. The second solution is to rely on renewable sources of energy such as solar energy and hydroelectric energy. The latter solution is more effective and environmentally friendly. CryptoJacking
No matter how secure blockchain technology is, crypto mining is still susceptible to hacks. Hackers have several advanced tools at their disposal that can hack through protocols and affect the price of cryptocurrencies. To tackle this problem, blockchain networks use the Proof of Stake protocol combined with other protocols to add additional protective layers. If one of the protocols is affected, the other remains unaffected and gives the network a fighting chance.