Bitcoin, Blockchain and Bitcoin Mining |
Posted: December 29, 2017 |
Bitcoin: we know it as a cryptocurrency, however, if all is that simple? My-cutsom-essays.com have taken a deeper look at the topic, and this is what we have found out. Many of us have heard about cryptocurrency and bitcoin. In the light of the recent events, many of us would like to buy at least a coin in hope for huge profits. But still, how many of us know what bitcoin is and how it functions? Moreover, if many of us know how we get new bitcoins? What Is Bitcoin Not many of us know though that bitcoin is, first of all, software. Yep, just a software, a set of protocols and processes. It is not physical, hence, we cannot touch it or store in a bank. Its value is what we assign to it: ? Bitcoin as digital money; What Is Blockchain Now, we believe, their terms look more familiar. Though, how the first bitcoins appeared and if it is possible to get new bitcoins now, or buying them is the only way to get them? What Is Bitcoin Mining Mining is adding transactions to the blockchain, like, say, we are adding a new mail to a string of mails. This doesn’t seem to be too complicated, but the fact is that now, there are so many coins in the market, and there are so many transactions made. Information about all those is contained in blocks, those blocks that build up the blockchain. How to Mine Say, we take a list of transactions. It is very long: just imagine, how many bitcoins are in the market and how many transactions have been already made – they all are recorded in the string. After that, we apply a cryptographic algorithm to generate the hash. Each new transaction changes the entire chain, hence, it becomes possible to generate a new hash. So, you generate a hash from all those transactions that have been made. The existent hashes are functioning; the new ones are added. That looks like an endless process. Though, bitcoin would not be so valuable if all were so simple. Bitcoins Are Limited Hence, Bitcoin…
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