MINING FOR DIGITAL CURRENCY Bitcoin and other digital currencies operate as peer-to-peer networks, which means everyone who uses the currency is actually a piece of the system. Mining is simply the term used for maintaining the block chain and verifying each transaction. Miners use special software that solve complex math problems and are issued a certain number of Bitcoins in exchange. This provides a unique way to issue the currency and also creates an incentive for more miners to participate. As the popularity of Bitcoin increases more miners join the network, which makes it harder to solve these math problems. For this reason Mining is no longer feasible for an individual and it will continue to get even harder. This has led to the creation of Mining Pools, where many people combine their computing power and increase their odds to mine for Bitcoin. The profits from these pools is split up among everyone in the pool.
Posted on: Wed, 24 Dec 2014 20:30:52 +0000
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