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Bitcoin

Bitcoin (BTC) is known as the first open-source, peer-to-peer, digital crypto currency that was developed and released by a group of unknown independent programmers named Satoshi Nakamoto in 2008. Crypto coin doesn’t have any centralized server used for its issuing, transactions and storing, as it uses a distributed network public database technology named block chain, which requires an electronic signature and is supported by a proof-of-work protocol to provide the security and legitimacy of money transactions. The issuing of Bit coin is done by users with mining capabilities and is limited to 21 million coins. Currently, Bitcoin’s market cap surpasses $138 billion and this is the most popular kind of digital currency. Buying and selling crypto currency is available through special Bitcoin exchange platforms or ATMs.

BlockChain

Blockchain technology, the power behind the distributed ledgers that allow for digital currency, is applied in new ways every day. The most basic definition of block chain is a shared, digitized ledger that cannot be changed once a transaction has been recorded and verified. All parties to the transaction, as well as a significant number of 3rd parties maintain a copy of the ledger (i.e. the block chain), which means it would be practically impossible to amend every copy of the ledger globally to fake a transaction. Bitcoin’s success has triggered the establishment of nearly 1000 new crypto currencies, leading to the delusion that the only application of blockchain technology is for the creation of crypto currency.

Mining

Cryptocurrency mining is a way to get Bitcoins. Of course, it is possible to buy them, but Bitcoin mining creates new ones by making new parts of the blockchain. In defining cryptocurrency mining, it should be stated how it actually works. In order to mine, there must be a peer-to-peer computers network so that tasks can be performed with their combined computing power. The more computers and less centralized the system, the faster tasks will be operated. Each computer is called a host in the blockchain and the network works based on a cryptographic protocol.