Blockchain & Web3 Explainer
THE GLOBAL CRYPTOCURRENCY ECOSYSTEM
Miners are the consensus layer of proof-of-work blockchain and the security of all smart contracts relies on them establishing consensus to maintain the network. In return for this service, miners get a fee.
What is cryptocurrency
It might seem obvious but what is cryptocurrency and it’s definition? Not many people actually know what it is by cryptocurrency’s true definition is the following. in short, it’s a digital version of money to buy and sell digital money over the internet securely. In simple terms, a bit more advanced than your traditional banks netbank or internet banking but runs on the blockchain.
The oxford dictionary’s definition of cryptocurrency.
a digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by a centralized authority.“decentralized cryptocurrencies such as bitcoin now provide an outlet for personal wealth that is beyond restriction and confiscation”.
Bitcoin is the world leading cryptocurrency or digital asset.
Bitcoin is a decentralized digital currency that can be transferred on the peer-to-peer bitcoin network. Bitcoin transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
What Is Bitcoin Mining? Bitcoin mining refers to the process where a global network of computers running the Bitcoin code work to ensure that transactions are legitimate and added correctly to the cryptocurrency’s blockchain. Mining is also how new Bitcoin is entered into circulation.
Whenever a transaction is made with bitcoin, bitcoin miners verify the transaction with specialised machines or miners called ASIC’s short for application speicfic integrated circuits. These are high powered computers need lots of energy to run these bitcoin mining operations and is spreadout globally in a decentralised network. It sounds simple enough but to run and operate bitcoin or cryptocurrency mining operation that’s successful is very complex, you need a massive amount of time, skill and a great deal of knowledge of networking and high end computers in general at a basic level, you actually need a lot of knowledge in the computer and network space in detail. Other cryptocurrency’s like ERG is similar to Bitcoin but is focused more on GPU Mining. Neoxa has a very good use case as well. You can mine with Gaming called Proof-of-Game. Earn cryptocurrency while you play games or mine it with your specific hardware and software.