Mining of Cryptocurrency

The Mining of Cryptocurrency

The Mining of Cryptocurrency: Gone are the days when we could use paper as cash money only. Gone are the times when we would have to juggle through the metallic coins inside our pockets to provide change. This is the era of technology, of science and of advancements to say the least. We have been progressing rapidly in each and every field of our life. And currency is no exception.

The procedure: Let us take an analogy. Imagine a coal mine. What happens here is that miners work on large portions of bedrock, constantly digging and chipping away at the rocks and boulders to get pieces of coal. Coal is then found in lumps and they collect it over time. After some time, they deposit the coal and in return they are awarded with their salaries. The procedure is the same in case of cryptocurrency mining. Huge amounts of data are gone through using powerful GPUs and computers. Then a transaction is made valid through this method. A hash value is generated that connects to the existing chain of hashes. As a reward, the miner is awarded with new cryptocurrency.

Cryptocurrency Wallets: Each unit of cryptocurrency comes with its very own addresses or keys. A cryptocurrency wallet is essentially a virtual wallet that serves to store all these aforementioned keys or addresses, so that they can be used in the future for receiving or spending the cryptocurrency.

Anonymity: A very important thing to understand in terms of cryptocurrency is that it is pseudonymous and not anonymous, thus effectively meaning that cryptocurrency owners are not identifiable but all transactions are public and hence can be easily tracked, so fraud is virtually impossible.

Competition: As a matter of fact the form of digital currency that we know of today, or cryptocurrency is not a new idea. It was first envisioned in 2009 when the first cryptocurrency was released, and suffice it to say that, even though there were quite a few ups and downs, there has been no looking back since then.

Cryptocurrency is the currency of the future, if not the present. It is absolutely necessary that we adopt such futuristic currencies and technologies so as to stay up to date with the current generation and its methodologies. Only then will we be able to decide for ourselves how best to use the boons in a controlled way and do away with the banes of cryptocurrency mining.

 

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