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What is mining?

In our website, we’ve discussed what Cryptocurrency is and how it is different from the Government issued Fiat Currency. What happens with Fiat currency is the government simply print money and distribute it via the central banks. But in case of Cryptocurrency, crypto coins aren’t printed, they do not have a physical value meaning you cannot hold it in, you cannot put it in your wallet or satchel or purse.

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What is mining?

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  1. What is

  2. In our website, we’ve discussed what Cryptocurrency is and how it is different from the Government issued Fiat Currency. What happens with Fiat currency is the government simply print money and distribute it via the central banks. But in case of Cryptocurrency, crypto coins aren’t printed, they do not have a physical value meaning you cannot hold it in, you cannot put it in your wallet or satchel or purse.

  3. In order to get Cryptocurrency or discover them, you’ve to mine them just the way you dig deeper into the ground and get hold of gold. But, Cryptocurrency cannot be dug, and you can't mine it using a jackhammer. The mining of Cryptocurrency is carried out using computers all around the world and the best part is your computer has to compete with million other computers to get the mining done. Let me tell you how we transfer money using some banking system.

  4. Suppose, I’m transferred 4$ to my friend via banking channel, and after I transferred the amount I need to have some proof that the transaction is confirmed. And this transaction is confirmed by the bank, we all know this basic procedure, right? Well here, Bank acts like a central authority that confirms the transaction and records the amount transferred in its ledger and this is shown to us in our Bank Statement/Passbook and then we get the assurance that the transaction has taken place.

  5. But as Cryptocurrency is Decentralized there’s no central authority to verify the transactions made. And this is where the miners come in. In Cryptocurrency, the miners confirm all the transactions taking place and they record it in a public ledger called Blockchain

  6. Content designed By: Askrypto.com

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