Hi everybody!Everyone is familiar with a «paramining» concept, but not everyone understands what exactly it is. Today we will try to study it in more depth and answer the most common questions.
WHAT IS MINING?The concept of mining is inextricably linked to blockchain technology. In short, the blockchain can be represented as a chain of blocks, and mining is the process of adding new ones. As a reward for creating new blocks, miners receive coins of this blockchain, thereby increasing their issue. This process is becoming more difficult due to high competition and decreasing rewards for the block produced. Single miners, then creating pools, then creating ASICs and even entire mining-hangars. Today cryptocurrencies are being mined on a truly industrial scale, leaving ordinary miners with a small reward.
WHAT ARE POW (PROOF-OF-WORK) AND POS (PROOF-OF-STAKE)?PoW and PoS are two different models for verifying and confirming transactions during mining. PoW is an older model that is used for mining bitcoin and many other cryptocurrencies. This model uses the computing power of the hardware of the miners involved in the mining process. The reward is divided among all, but in proportion to the power provided by a particular miner. It is not difficult to guess that in modern realities, while mining for example bitcoin, a lone miner or even a group of people who make up the pool will receive a small reward for the above reasons. It is not difficult to guess that in modern realities, while mining for example bitcoin, a lone miner or even a group of miners who make up the pool will receive a small reward due to the above reasons. In the PoS model, the transaction is confirmed only using a coin wallet. As a reward, the miner receives a fee for conducting a transaction (so the reward is charged from coins that are already in circulation). Naturally, this reward is less than in the PoW model, but in this case there is no need for expensive equipment and energy costs for its operation.
WHAT IS PARAMINING?In fact, paramining is mining in the PoS model. That is the extraction of digital currencies using coins that are on the balance of your wallet. In other words, the cryptocurrency located on the user's wallet produces new coins for him, and thus generates income. In recent years the popularity of paramining is growing rapidly thanks to its obvious advantages over conventional mining. It is much easier for an ordinary user to get a certain amount of some cryptocurrency based on the PoS model, and then receive a reward just by holding it in their wallet, than to spend their money on buying and maintaining mining equipment. In addition, paramining also has its own pools, by joining it, each participant will receive a higher reward than working alone.
PARAMINING ON THE EXAMPLE OF THE QOOB COINThere is also the possibility of paramining in QOOB cryptocurrency. To start the process, the user only needs to have 100 QOOB on the wallet balance. The system of establishing referral links without using any links is also applied. After creating a new wallet, the system fixes the sender of the first transaction in the blockchain and permanently establishes a referral link that cannot be changed – this makes it easy to build global structures and increase the speed of mining new coins.
The difficulty coefficient is calculated as a percentage, and is proportional to the total number of coins issued. The maximum difficulty level is 60%, which corresponds to 6 billion generated QOOBs. Mining difficulty is a linear decrease in the number of coins mined, expressed as a percentage and depending on the total number of coins already mined by all users. More over, depending on the number of coins stored in the wallet, the mining coefficient for this wallet will also change (The more coins, the less production).
https://i.imgur.com/ml34Yd0.pngAn increasing coefficient can be applied to the paramining profitability of the account owner, depending on the number of coins in the structure of his followers up to level 77 inclusive.
https://i.imgur.com/oRD1ATA.pngThe blockchain also provides a storage coefficient, which is activated after transferring at least 100 QOOB to the wallet balance. The retention period cannot be interrupted by an incoming transaction or receiving a fee for generating blocks. After making an outgoing transaction the counter of the retention period is interrupted and the user's paramining balance is credited to the main balance.
https://i.imgur.com/95KQ6re.pngToday we discussed the basic and most important information regarding Paramining, its advantages and features. You can find even more detailed information in the QOOBER White paper.
Don't forget to visit the QOOBER ANN thread from QOOBER ACADEMY.
https://bitcointalk.org/index.php?topic=5279388.0
