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What is Bitcoin Mining?
Bitcoin mining is a process of mathematical calculation performed on Bitcoin Network. As we all know, Bitcoin runs in an online system, and the purpose of mathematical calculations is to verify the bitcoin transactions that exist on the Internet. By doing the verification, bitcoin miner will get a new block gap in the Bitcoin network containing a new amount of Bitcoin and can be taken. That's where a Bitcoin miner will get Bitcoin for himself. More process of verification and the creat new blocks, that meab more mined bitcoins too.
Mining is the process of collecting and validating transactions into a block and appending the block to the block chain. The miner that adds a block earns the block reward. There is a contest that chooses which miner gets to add the next block. In this contest, the miner performs a process (called a hash) that generates a number. The first miner to generate a number that is low enough wins the contest. Miners try again and again until someone wins, so the chance of a miner winning is proportional to their hash rate.
CPU Mining
Mining Bitcoin with a CPU is pretty easy, because it only requires a computer device that can connect with a bitcoin mining network. This Bitcoin mining network, commonly referred to as mining pool.
The level of difficulty in the bitcoin mining process is getting higher, many bitcoin miners leave this CPU device. This is because the Bitcoin results obtained isn't balance with electricity and internet connection costs.
Bitcoin mining with a CPU is obsolete because it can no longer compete with ASIC devices, but there are a few altcoins are mined with a CPU.
CPU mining is unrelated to mining pools. A mining pool is a group of people combining their mining capacity and sharing the block rewards.
GPU Mining
GPU (Graphical Processing Unit), or known as graphics card. GPU, can be used to mine Bitcoin, because GPU has special functions which not performed by the CPU, the difference is why GPU are more profitable to mine Bitcoin than CPU.
FPGA Mining
This device is a bitcoin mining hardware that is made by the Butterfly Labs company "ztex german". This device using chip technology.
Bitcoin mining with a GPU and FPGA mining is obsolete because it can no longer compete with ASIC devices, though many altcoins are mined with a GPU or FPGA.
ASIC Mining
ASIC mine device, based on SHA-256 / GHS algorithm. This device is usually used by Bitcoin cloud mining company. The ability to mine Bitcoin is worth with the price which is very expensive. However, by using this hardware, will be able to optimize the results in mining Bitcoin.
An ASIC is a specialized chip designed specifically for mining. Because it is designed for mining it is more powerful than CPUs, GPUs, and FPGAs. ASIC devices have been manufactured for only a limited number of currencies.
Cloud mining is unrelated to ASIC mining, though a cloud mining site may use ASIC devices (if it is not a scam).
Scrypt Mining
Scryp mining using an algorithm which is more simple than the SHA-256 algorithm. In addition, the resulting hash is in kilohashes per second (kh / s), and Megahashes per second (MH / s). Hardware to be able to use scrypt mining is not should using ASIC or other special hardware.
Some currencies, such as Litecoin, use a hash algorithm called Scrypt in the mining process (compared to double SHA-256 hash algorithm used in Bitcoin mining). The Scrypt algorithm is much slower than double SHA-256, so the hash rates are lower. There are now ASIC devices manufactured for Scrypt mining.
