Mining Cryptocurrencies: Complete guide to mining
The world of cryptocurrencies offers many interesting insights not only because it could soon become part of our daily life but also and above all because cryptocurrencies can represent today as today a valid outlet and outlet for those who have money to invest or general looking for a way to earn.
In this paper we deal with the fundamental concept of undermining cryptocurrencies .
Trying to understand what it is all about and what this expression now enters in the vocabulary of many people who carry out this activity on the net, a phenomenon that has experienced great expansion in the past.
In practice, as an introduction we can say that mining is used in cryptocurrencies because there is no other way to issue money. So the system and the meaning is already quite clear.
That is, in a system that does not provide the central bank that is able to print and physically produce money, we rely on new and more ingenious systems for issuing money, so that since the bitcoins and the world of virtual coins in general exist , there is also the mining activity , this is changing over time and therefore we start from trying to do some history of this activity.
Mining cryptocurrencies: the meaning
So what happens? In practice, the bitcoin network stores transactions within data structures that are called jargon blocks , these blocks are able to track transactions and testify to them.
In order for a block to be added to the block chain (this is the huge public database containing all the transactions that have ever been done in bitcoins) and therefore becoming an official part of the bitcoin world, a computer must “Close” by finding a particular code.
This is the seemingly very simple bitcoin system. The code can only be hit by numerous attempts.
What does cryptocurrency mining mean?
Doing this operation allows the block to crystallize preventing any kind of future modification, so it is clear that this is the system that allows bitcoins to exist and to be safe and very used, they are in fact reliable like a normal coin.
Whoever finds the code we were talking about is rewarded with a certain amount of bitcoins, in the past for example 25 bitcoins were given for having closed a block and in addition they were rewarded with all the transaction fees that he entered in a block, this was the main incentive to donate car time to the bitcoin cause.