Bitcoins are the new cash that has evolved from the old age money in the forms of coins and notes to the new-age virtual cash. Bitcoins are not owned by a central system but rather a network of different systems that are present everywhere around the world. This is the new Era of Bitcoins, which will soon take over the world with its virtue.
But what makes Bitcoins so special?
What makes Bitcoin’s so special and attractive is its value in the market. At today’s time, the value of one Bitcoin is approximately INR5 lakh.
But you must wonder how one keeps track of bitcoin and use it for their benefit. And what must one do to increase the value of the bitcoin? The answer lies in Mining.
If we use the complex terms, Bitcoin mining is solving and decoding the complex computational mathematical problems that are provided on the bitcoin network. It is quite similar to coal mining, just like people mine in the coalfield and finds coal, and each computer uses its software and work to solve these complex mathematical problems and find the answer, i.e. gold, and increase the value of the currency. In simple words, the value of the currency increases through mining.
Once the computer solves these complex problems, they produce a new bitcoin, and then by computing the math problems, the miner makes the network worth trusting and secure, through the verification of transaction information. It has dual motives.
How safe and secure is Bitcoin Mining?
Bitcoin is not held or controlled by a central authority or system. It is controlled by millions of systems and computers across the world that are referred to as “nodes”. These nodes perform the same function as Mastercard and Visa perform on our debit card and credit card transactions. The nodes store the information provided by the previous transactions and help to verify the accounts.
So, whenever someone makes a transaction using a bitcoin, the same effect that happens with the purchases made with debit or credit card, are stored by these nodes. The nodes group these transactions together in “Blocks” and are then added to a public record list which is called as “Blockchain”, such that the further transactions could be verified in the future. Hence, at Bitcoin Era ikkedeler. Meaning, they do not share any crucial information.
So, mining is important as it ensures that the bitcoin network is safe, secure and stable. It provides a way to issue the bitcoins, and also raise incentives based on the verification of transactions made by other users.