Cloud mining

{{Short description|Cryptocurrency mining using a remote data center}} {{pp|small=yes}} {{original research|date=October 2014}} '''Cloud mining''' is the process of cryptocurrency mining utilizing a remote data center with shared processing power.<ref>{{cite book|url = https://books.google.com/books?id=RfWcBAAAQBAJ&q=cloud+mining&pg=PA57|title = Handbook of Digital Currency: Bitcoin, Innovation, Financial Instruments, and Big Data|author = David Lee Kuo Chuen|date = 2015|publisher = Academic Press|isbn = 9780128023518}}</ref> Cloud mining has been used by ransomware groups and scammers to launder cryptocurrency.<ref>{{cite news |last1=Lakshmanan |first1=Ravie |title=Ransomware Hackers and Scammers Utilizing Cloud Mining to Launder Cryptocurrency |url=https://thehackernews.com/2023/06/ransomware-hackers-and-scammers.html |work=The Hacker News |date=June 15, 2023 |language=en}}</ref>

This type of cloud mining enables users to mine bitcoins or alternative cryptocurrencies without managing the hardware. The mining rigs are housed and maintained in a facility owned by mining company and the customer simply needs to register and purchase mining contracts or shares.<ref>{{cite web|url = http://cloudminingreport.com/about-cloud-mining/|title = About Bitcoin Cloud Mining|author = |date = |work = Cloud Mining Report|access-date = 2 January 2018|archive-date = 2 January 2018|archive-url = https://web.archive.org/web/20180102191658/http://cloudminingreport.com/about-cloud-mining/|url-status = dead}}</ref> Since cloud mining is provided as a service, there is generally some cost and this can result in lower returns for the miner.

==Types of hosting== [[File:Cryptocurrency Mining Farm.jpg|thumb|A mining farm located in Iceland. The picture shows scrypt miners.]]

Users of hosted mining equipment can either lease a physical mining server or a virtual private server and install mining software on the machine. Instead of leasing a dedicated server, some services offer hashing power hosted in data centers for sale denominated in Gigahash/seconds (GH/s); users either select a desired amount of hashing power and a period for the contract or in some cases can trade their hashing power.

==See also == *Mining pool

==References== {{Reflist}}

==External links==

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Category:Cryptocurrencies