BITCOIN AND BITCOIN MINING BITCOIN There has existed different means of exchange since time immemorial
BITCOIN AND BITCOIN MINING
There has existed different means of exchange since time immemorial, there was barter trade, then came money inform of prints and coins and recently the world have adapted to the bitcoin. Bitcoin is a type of money that is used to enhance payment whereby in another case we can refer it as a means of paying for goods and services in different areas of commerce. Bitcoin is a coined word from the word bit and the word coin, whereby bit refers to a basic unit of certain information in computer science and coin is a flat metallic or plastic medium of exchange. It has been adopted in the whole world as a means of exchange for goods and services. This kind of system operates without the supervision of any office like central bank or any other single personnel for its management and administration which means that any transaction that is conducted using the bitcoin is dealt with by individual people who are exchanging the goods or those people involved in offering the service rather than like the money factor which involves control by the central banks. The transactions that are made through the bitcoin are checked through the networks nodes and then they are spread or transferred to a ledger where the individual users can check the transactions. Bitcoin is usually in form of digital and usually operates on a network controlled system. There is no information that relate who created or invented the bitcoin whose transactions are dated back in the year two thousands and nine (2009) but was released in form of an open software. Bitcoin have the ability to be exchanged for other currencies like dollars or even shillings, in the purchase of goods and even when accessing certain services they also accept. Bitcoin are created in the process referred to as mining hence bitcoin mining.
Bitcoin mining refers to the process by which the transactions done on network involving bitcoin are checked in the networks after which they are added to the distributed ledger that host all the transactions involving the bitcoin which results in the creation of new bitcoins. Blocks refer to the units in which bitcoins are mined. This mode of currency has been facilitated by internet access hence any person who can access the internet service can be involved in bitcoin mining. Bitcoin mining involves bringing together all transactions that have been performed recently into blocks and the trying to solve a puzzle. This activity is usually performed by various participants and the first participant that solves the puzzle first becomes the person to place the block to the block chains and then he or she goes ahead to claim the reward or payment for the win. Mining is like editing whereby the miners are involved in the process of verifying the transactions that are made in the distributed ledger blocks. Its not automatic for a miner to earn because it involves capturing the right answer before another miner gets it hence it sometimes a matter of luck. In mining a person uses a tool called graphic processing unit or specific integrated circuit mining tool. The undisclosed transaction is usually known as the target hash that enable a miner to win a bitcoin.