An Insight Into Bitcoin And The Bitcoin Mining
Bitcoin, a venture that has no doubt gained eminence in the current market was initially designed to be a platform through which a user to user transfer of funds is made possible. What is special about bitcoin and what enhances its wide popularity is that it does not need a central authoritative figure to monitor the transactions carried out by the corresponding users.
This is completely private institution which came into existence in the year 2009, the idea being developed by Satoshi Nakamoto and focusing mainly on the digitization of currency.
Bitcoin Mining is one significant term which is quite trending nowadays. It refers to the process of adding transactions to Bicoin’s public database which is also termed as a “blockchain”. This particular database is widespread amongst the miners and contains mainly data files that keep records of the transactions which have taken place over the network.
Whenever a particular transaction takes place on a Bitcoin’s network, the miners verify the details of the corresponding transactions and quickly tally the same so that no bitcoin is used twice by the customer. This ensures that no ambiguity situation is created in the database or the network and all transactions function smoothly in the right manner.
Moreover, to keep the transaction records from being modified illegally, “the blockchain”, as so it is named, is highly encrypted in format using various cryptographic techniques and algorithms which are in fact quite difficult to comprehend, thus ensuring a security to the database. Of course, this all hard work done by the miners do not go unrewarded. They are given fresh coins as an incentive for their significant contribution to the network.
The history of bitcoin mining traces back to 2009 when there was relatively low level of cryptographic security involved which could easily be handled by a normal personal computer.
With the increasing number of Bitcoin users and the transactions made by the same, the difficulty levels regenerated to a whole new level of complexity. A lot of technology was involved with implementing the work of FPGA miners to the ASIC miners for further enhancement of the Bitcoin industry as a whole.