Bitcoin is a digital currency created in 2009. It follows the ideas included in a white paper by the mysterious Satoshi Nakamoto, whose identity has yet to be verified. There are no physical bitcoins, we don’t need it, only their owners contend to exchange them by writing transactions in a public ledger in the network, which is verified by a large amount of computing power, the Mining. Bitcoins are not issued or supported by banks or governments, although they are recognized as commodities, or financial asset. The popularity of Bitcoin has triggered the launch of other virtual currencies collectively called Altcoin.
DOING MINING MEANS USING HARDWARE TO CONSTANTLY PERFORM COMPLIMENTAL CALCULATIONS IN ORDER TO VALIDATE THE DATA OR TRANSACTIONS THAT ARE WRITTEN IN THE BLOCKCHAIN
THE COMPENSATION FOR THIS WORK CONSISTS OF THE CRYPTOVALUTA GENERATED BY EACH VALIDATED BLOCK
BITCOIN IS A NEW GLOBAL FINANCIAL ASSET
Blockchain MINING is the technology behind a new real economy
Data storaging and data transfer and ownership for any form of legal digital value
All mining is intentionally designed to require a large amount of resources.
The problem that has to be solved must be quite difficult to make sure that the number of blocks found every day by the miners remains stable. The individual blocks contain evidence of something that is not easy to produce but is trivial to control. The concept is identical to cryptography: a public key can be created if it has the private key. It is also easy to check that the output of a combination of a private and public key is correct, but it is very difficult or impossible to generate the private key if all you have is the public key. The main purpose of mining is to achieve a secure and tamper-proof consent. Mining is also the mechanism used to introduce coins into the system: miners are usually paid all transaction fees and a “subsidy” of new coins created at each block.
This serves at the same time in order to spread new currencies in a decentralized way and to motivate people to provide security for the system by mining. When a node creates a block by solving a very difficult mathematical problem, a designated number of other nodes on the network can quickly verify that the solution is correct. This allows people and their computers to conduct transactions with others even if they do not have guarantees to trust them otherwise. The fact that trust between the parties is not required to complete a transaction is the reason why this design is called “trustless.” It has huge advantages over the traditional banking system, which requires almost complete trust between the parties in which a party must always risk when starting a transaction.
