How Sumcoin Mining Works
Where do Sumcoins come from? With paper money, a government decides when to print and distribute money. Sumcoin doesn’t have a central government.
With Sumcoin, miners use special software to solve math problems and are issued a certain number of Sumcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine.
Sumcoin is Secure
What is the Blockchain?
The primary purpose of mining is to allow Sumcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Sumcoins into the system: Miners are paid any transaction fees as well as a “subsidy” of newly created coins.
This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system.
Sumcoin mining is so called because it resembles the mining of other commodities: it requires exertion and it slowly makes new currency available at a rate that resembles the rate at which commodities like gold are mined from the ground.
Mining the "Blockchain"
Sumcoin nodes use the block chain to distinguish legitimate Sumcoin transactions from attempts to re-spend coins that have already been spent elsewhere
What is Proof of Work?
Producing a proof of work can be a random process with low probability, so that a lot of trial and error is required on average before a valid proof of work is generated. Sumcoin uses the Hashcash proof of work.
What is Sumcoin Mining Difficulty?
The Computationally-Difficult Problem
Sumcoin mining a block is difficult because the Scrypt hash of a block’s header must be lower than or equal to the target in order for the block to be accepted by the network.
This problem can be simplified for explanation purposes: The hash of a block must start with a certain number of zeros. The probability of calculating a hash that starts with many zeros is very low, therefore many attempts must be made. In order to generate a new hash each round, a nonce is incremented. See Proof of work for more information.
The Sumcoin Network Difficulty Metric
As more miners join, the rate of block creation will go up. As the rate of block generation goes up, the difficulty rises to compensate which will push the rate of block creation back down. Any blocks released by malicious miners that do not meet the required difficulty target will simply be rejected by everyone on the network and thus will be worthless.
Select from any of the Sites below to navigate for more Sumcoin Mining Info
Given the speed, security and simplicity being able to hold the “SUM” of the market in only one coin, Sumcoin is for those who want to gain maximum exposure to the crypto space but may only want to hold one coin for simplicity, which can reduce risk factors. As the value is spread across 100 coins, there is a great reduction of volatility to Sumcoin vs any other coin.