Suppose you are in the queue of a bank counter to do a neft. The man or woman in the counter will do the process for your account. In a certain case the process done by that man or woman can also be termed as ‘mining’. In that certain case crypto currency plays the role of money.
Briefly, mining is the integral process wherein generation, transmission and validation of transactions of crypto currencies are done. It ensures stable, secure and safe propagation of the currency from the payer to payee. But in this case the whole process is decentralized. Bank & government organization associated with printing & publishing of physical currencies requires highly modified infrastructural facility to execute the operation properly. But crypto currencies solve this crisis through its mining system and the people involved in the network of mining. Now these human beings who are associated with this process are termed as ‘miners’ or ‘nodes’.
Mining is a complex process involving more complex calculations. So there are some machines also to do the required calculations. Every consumer can’t afford the price of the machines. So, obviously there are some people who are only for mining. Consumers hire those people to complete the calculation i.e. mining in return of certain rent. This particular system is called cloud mining.
It is a very interesting process and complex too. Cloud is, by definition, a group of computers which are connected with each other. They may be PCs or network servers, private or public. As an example, Google is having a cloud that consists of both small PCs and large servers. The cloud of Google is private i.e., it is accessible by the users of Google only. This type of mining is more than an association. Cloud serves such applications and data which are available to a huge group of users, across enterprises and across platforms. We may get access there through internet. Any user who is authorized can get access to these from any computer over any internet connection.
Cloud miningshould not be confused with network computing where all the information are hosted on the company’s single network and it can be accessed by members on that network only.