There have existed different means of exchange since time immemorial; there was barter trade, then came money inform of prints and coins and recently the world has adapted to the bitcoin. Bitcoin is a type of virtual currency that is used to enhance payment. In another term, we can refer to it as a means of paying for goods and services in different areas of commerce.
Bitcoin is a coined word from bit and the word coin, whereby bit refers to a basic unit of certain information in computer science and a coin is a flat metallic or plastic medium of exchange. It has been adopted in the whole world as a means of exchange for goods and services.
This kind of system operates without supervision from an officer unlike a central bank or any other systems that require close monitoring for its management and administration. This means any transaction conducted using the bitcoin is dealt by people who are in business of exchanging goods or those involved in offering services.
Transactions made through bitcoin are checked through the network’s nodes and then they are spread or transferred to a ledger where users can check the transactions. Bitcoin is usually in form of digital and usually operates on a network controlled system. There is no information that relates who created or invented the bitcoin whose transactions are dated back in the year two thousand and nine (2009) but was released in form of an open software.
Bitcoin has the ability to be exchanged for other currencies like dollars in purchases of goods and even when accessing certain services online. Bitcoin is created in the process referred to as mining hence bitcoin mining.
What is Bitcoin Mining?
Bitcoin mining refers to the process by which the transactions done on all networks are checked after which they are added to the distributed ledger that host all the transactions. This results in creation of new bitcoins. Blocks refer to the units in which bitcoins are mined. This mode of currency has been facilitated by internet access hence any person who can access the internet service can be involved in bitcoin mining. Bitcoin mining involves bringing together all transactions that have been made recently into blocks and then trying to solve a puzzle.
This activity is performed by various participants and the participant that solves the puzzle first becomes the person to place the block to the block chains hence claiming the reward or payment for the win. Mining is like editing; whereby the miners are involved in the process of verifying the transactions made in the distributed ledger blocks.
It’s not automatic for a miner to earn as it involves capturing the right answer before another miner gets it hence it sometimes a matter of luck. In mining, a person uses a tool called graphics processing unit or specifically integrated circuit mining tool. The undisclosed transaction is usually known as the target hash that enables a miner to win a bitcoin.