The sudden uprise in Bitcoin’s value in the past few months took it out of the technology circles into the approach of common people. In a matter of weeks, everyone became familiar with the concept behind cryptocurrencies and their use in today’s society. For those, who still couldn’t get the point, will definitely be benefited from this article.
Bitcoin and other stable cryptocurrencies grabbed everyone’s attention when all of a sudden, their values were up to the sky. The news was all over the famous media forums including BBC as now, there is a whole new way of sending and receiving money, the virtual one.
What is Cryptocurrency?
Cryptocurrency can be simply defined as an intangible type of money which is virtually transferred to the other accounts for buying and selling products, without the need of a third person. It simply rules out the need for a bank, a sender or any other such organization. You just need to download the app for the respective cryptocurrency and you’ll be able to send and receive money from the person you are trading with.
Blockchain and Bitcoin Mining
Many people have this misconception regarding the cryptocurrency mining that it is somehow related to creating a new bitcoin or finding it from somewhere on the internet. It isn’t like this at all. Mining actually means keeping the record of the transactions that are being carried out all over the world and maintaining a ledger of the blockchain.
The blockchain is the chain of transfer history of all the transactions made from a cryptocurrency which is kept in PCs from all over the world. Mining helps to maintain the blockchain in a way that the blocks don’t get mixed up and each block is placed in a position where it should be.
Cryptocurrency miners from all over the world, use extremely high-end PCs to maintain these blockchain records so that each transaction is recorded accordingly. This whole process of maintaining the record is known as mining.
We’ll keep making more beginner level guides to ensure that all those uninformed folks out there get to know what is happening all around in the name of cryptocurrencies!