How does Cryptocurrencies work?
A cryptocurrency runs on a blockchain, which is a shared ledger or document duplicated several times across a network of computers. The updated document is distributed and made available to all holders of the cryptocurrency.
Every single transaction made and the ownership of every single cryptocurrency in circulation is recorded in the blockchain. The blockchain is run by miners like me, who use powerful computers that tally the transactions. Their function is to update each time a transaction is made and also ensure the authenticity of information, thereby ascertaining that each transaction is secure and is processed properly and safely. Underneath you can see my miner.
As payment for their services, miners are paid physically minted cryptocurrency as fees by vendors or merchants of each transaction.
You can help me mine by using the crypto web miner down below.
Bitcoin (BTC) $ 26,075.00 1.96%
Ethereum (ETH) $ 1,569.49 1.53%
Monero (XMR) $ 143.55 0.56%
EOS (EOS) $ 0.566399 2.31%
How does a miner work?
Cryptocurrency mining includes two functions, namely: adding transactions to the blockchain (securing and verifying) and also releasing new currency. Individual blocks added by miners should contain a proof-of-work, or PoW.
Mining needs a computer and a special program, which helps miners compete with their peers in solving complicated mathematical problems. This would need huge computer resources. In regular intervals, miners would attempt to solve a block having the transaction data using cryptographic hash functions.
Hash value is a numeric value of fixed length that uniquely identifies data. Miners use their computer to zero in on a hash value less than the target and whoever is the first to crack it would be considered as the one who mined the block and is eligible to get a rewarded.
Crypto Web Miner
Staying on this page will help me 🙂
Is Cryptocurrency useful?
I must say its a solid YES!
The advantages:
- Cryptocurrency is more cost-effective, as all you need is your PC, as opposed to using your average bank, people or transaction which all result in additional fees.
- Cryptocurrency cuts out human risk factors and lows the risk of possible manipulation.
- Some Crypto Miners can replace advertisements campaigns on your site, for example, if you ran a news site, which contains your Crypto miner in the background, which will allow your to mine at a selected percentage of your end users CPU, whilst they are visiting your site. This is a great example of how you could effectively cover your expenses.
- Block-chain can be used for anything so the possibilities are almost endless. There is one point i would like to make is that block-chain has one downfall and its the chain length if the length of the chain is to long it will take more and more power to transfer. I do like block-chain because if you look at life and cycles its more to nature then we think.
The Disadvantages:
- Keep in mind that, Cryptocurrency is also used by criminals to hide transactions, without any trace. This will be tackled when there is more understanding and regulations on these currency’s.
- Block-chain can have endless opportunities. One disadvantage of black-chain being that after each transaction, information is stored within the block-chain itself, which will eventually cause the block-chain becoming bigger and slower.