Monday, 8 May 2017

What is Bitcoin and Bitcoin Mining

If you are not familiar with bitcoin then you can get more information about Bitcoin from meritmock by reading this article here.
What is Bitcoin and Bitcoin Mining

What is Bitcoin?

Bitcoin is a virtual currency, If you have Bitcoins, you can not physically purchase goods in the form of notes or coins. Bitcoins are mainly used for online / electronic purchasing and transfer of money. You can use Bitcoins for friends, businessmen. Every one purchase is digitally logged on the computer (instantaneously) and the transfer log also updates with the exchange. It immediately reveals how many Bitcoins owns.

This digital transfer log of bitcoin is called 'block-chain'.

There is a difference between the word 'Bitcoin' and 'bitcoin'. Bitcoin, where "B" is a capital letter, refers to the entire system. On the other hand, bitcoins, where "B" is small, displays actual currency.

The popularity of Bitcoins is increasing rapidly, Although, at the outset, the Speculative had a great deal of interest on their way to earn money in it. Those who were looking at buying a bitcoins at a lower cost and making money by selling them at high prices. But now the trend of Bitcoins is growing rapidly in the business.

Bitcoin is the currency of a digital asset and a payment system, invented by Satoshi Nakamoto in the year 2008 and released in 2009 as open source software.

How Bitcoins Pricing?

Bitcoins are like any other currency: they keep coming in fluctuations like the value of other currencies. Every time a Bitcoin purchase changes its ownership, and at the exchange the seller and buyer's mutual consent determine its value. Generally, depending on the rate at which buyers sell Bitcoins to others. It is the responsibility of the seller to give a reasonable price to it. The difference between bitcoins and other currencies is that there is no centralized bank in it that can print currency and determine prices. Bitcoin's value keeps fluctuating through the supply and demand of transactions.

Where are Bitcoins formed?

Some users work to confirm transactions in peer-to-peer networks with their computers. The more computing power these users contribute to the network, in the same proportion they get new bitcoins.

Importance of Bitcoins on Credit Cards

We charge transaction fee of about 2 to 3 percent for every credit card payment. Almost no additional charge is payable in transactions with Bitcoins. That's why the seller is also encouraged to accept Bitcoins. 

If buyers and sellers agree on an amount for a service, using Bitcoins gives them complete control and transparency. Like any other credit card, it does not have a credit limit, nor is there a cash flow problem. The biggest advantage of Bitcoins is that all the necessary information is public and transparent.

Without disclosing the identity of the buyer and the seller, each transaction of the entire Bitcoin network is to be known.

What is Bitcoin Mining?

The process of updating a transaction (transit) in Bitcoin's public bookkeeping is called Bitcoin Mining. Just like you have ever printed all your transaction details on your passbook in the bank, Bitcoin's transaction is also updated in its online bookkeeping and this process is called mining. Like you have details of old transactions in the book, and in the same time you update the new details as well as in Bitcoin. You can view all Bitcoin transactions online.

What is Blockchain?

The information of each old transaction is called block and transaction transaction of the last transaction is called blockchain in Bitcoin world. That is, when you go to update your old passbook, this process of updation can be called mining in Bitcoin's language. The printed passbook with the previous transaction is your blockchain and the information of every debit credit listed on that passbook is blocked only. Blockchain works to confirm transaction in Bitcoin network.

People who have better knowledge of software work on it to mining, to verify bitcoin transactions and add it online in public laser (bookkeeping). People who do this work, ie mining, are called Minor in Bitcoin's language. And you will be surprised to know that in return, miners get their fees and also get new bitcoins which are made in this mining process.

What's the purpose of mining?

The main purpose of bitcoin mining is to provide bitcoin nodes with a secure, fishing and tamper-proof. Mining is also a mechanism that launches bitcoin in the system. Miners also get fees for mining, as well as "subsidy" for new bitcoin.

It promotes the spread of new coins in a decentralized manner as well as the purpose of providing security to the system. It is called Bitcoin Mining because it is like mining of other things: This requires diligence and it gradually brings new currency at a rate such as gold mining from the ground.

Apart from obtaining bitcoin from this mining process, you can also get it in exchange for currency exchange, online games, products and services.

Bitcoin mining is deliberately designed to be very complex and processed by any resource. In this way, the number of blocking numbers that can be done on a daily basis is kept constant for every minor. The validity of each block is with the "proof of work" associated with it and this "proof of work" is checked in every transaction by the second bitcoin nodes. And every time the Bitcoin uses the function called a hashcash to check this "proof of work".

What is Proof of Work?

Proof of Work is a small part of bitcoin data, which is the form of mining complex and time consuming process.

The production of the Proof of Work notification can be a random (random) process with less chance, so there is a lot of effort needed to build a valid Proof of Work. Bitcoin uses #Hashcash-Proof for this job.

Bitcoin Mining, Big Sources of Earning:

When a minor searches for a block, it receives a certain number of Bitcoins in the form of a reward, which is the amount accepted by everyone in the network. Currently, this prize money is about 25 bitcoins. And according to the price of today, the price of 25 bitcoins will be Rs 10 lakhs 15 thousand 90 rupees in Indian rupees.

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