Actual Simple
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We write about digital marketing, business models, and startups in a simple and lucid manner.
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What Is Bitcoin And Why It Is Valuable?
On October. 31, 2008 a mysterious and anonymous Satoshi Nakamoto released a white paper Bitcoin: A Peer-to-Peer Electronic Cash System which tells about the creation of Bitcoin as a decentralized digital currency. Still, Satoshi Nakamoto’s identity has been a mystery. It’s not even clear who Satoshi Nakamoto is. It could be an individual, a group, a company, etc.
By Actual Simple2 years ago in The Chain
A Simple Guide To Crypto Mining
In an ever-increasing world of cryptocurrency and blockchain, there is one term that intrigues a lot of people which is “Crypto Mining”. Trading and investing in cryptocurrencies is one aspect of this beautiful technology. Mining them is one different space which surely fascinates people. But crypto mining can be complex and a little tricky to understand. This article aims to serve as a simple guide to crypto mining and how crypto mining works. TABLE OF CONTENTS What is cryptocurrency mining? Why do we need cryptocurrency mining? Blockchain and Ledger In A Simple Manner! How Crypto Mining Works? What is required to start mining? The Future of Mining! Related Articles 1. What is cryptocurrency mining? Let us first understand the well-known meaning of the term mining. It simply means to extract minerals from the Earth. Similarly, processing and extracting a new cryptocurrency coin is crypto mining. We add the new coin in the already existing coins. Mining a cryptocurrency involves solving a complex mathematical algorithm using processors. The people who run these machines with the aim of solving the algorithm are miners. When any miner solves the algorithm successfully, a cryptocurrency coin is rewarded. Moreover, it becomes a part of the already existing market for that coin. In a more easy manner – creating a new cryptocurrency coin is crypto mining. 2. Why Do We Need Cryptocurrency Mining? For fiat currencies, banks and government authorities regulate transactions. It ensures that transactions are secured and that no one is manipulating by simply duplicating the fiat currencies. We cannot print our own notes and use them, right? This scenario opens up a different challenge in the world of cryptocurrencies. We need a way to create new crypto coins without duplication. Above all, a simple motive is to create a new coin that would be unique in itself and not a copy of some other coin. We use blockchain and mining to deal with this challenge. 3. Blockchain And Ledger In A Simple Manner! Blockchain is a chain of blocks. We link each block to its previous block and its succeeding block. Picture a block containing, let’s say 2 bitcoins. Now, we link this block to its previous block containing some other amount of bitcoin. We also link it to the forward block containing some amount of bitcoin. 4. How Crypto Mining Works? Imagine a setup of multiple blocks linked together in the above-mentioned chained manner. Mining a cryptocurrency means solving a complex mathematical algorithm. The algorithm we solve is a hash function. A hash function takes a bunch of data and generates a random series of characters which is unique. Once we solve the algorithms, it validates the most recent block in the chain. As a reward, we generate a new block and add it to the chain. This new block contains a set amount of cryptocurrency. Above all, this block belongs to the person who solved the algorithm. When we perform mining, we are simply taking all the transactions (the value generated by the hash function) till the last/ recent block in the chain. We add a random number to it (called nonce) and then pass it to the hash function. If the result is a number that is smaller than the decided value for your cryptocurrency – a new valid block/ coin is created. Else you change the random number (nonce) and try again until you get a smaller value than the decided value in the cryptocurrency network. In the case of Bitcoin, the hash function used is SHA-256 5. How Crypto Mining Works? What Is Required To Start Mining? To start mining cryptocurrencies, we cannot use a basic laptop or mobile device. Such devices would take millions of years to solve the hash functions, add random numbers and validate the block. For mining, we require advanced computer hardware with high processing capabilities and Graphics Card (GPUs). 6. The Future Of Mining! The future of cryptocurrencies is quite bright as it is well received by the people. But when we consider mining, it is costly and requires a lot of electricity and time. In addition, such usage of advanced hardware and processing also adversely impacts the environment to a large extent.
By Actual Simple2 years ago in The Chain
Is Crypto As Salary A Good Option?
The world of cryptocurrencies and digital finance is exploding and making its mark in various domains. We are able to see its impact like never before. The underlying technology of blockchain has revolutionized the way a normal human was approaching finances, trading, and investing. Although Bitcoin and other cryptocurrencies have gained acceptance and are even legal in some countries, people are still skeptical about cryptocurrencies when it comes to salary payments Let us understand if crypto as a salary is a good option or not.
By Actual Simple2 years ago in The Chain
Top 10 Cryptocurrencies Apart From Bitcoin For 2022
The mainstream society has now come to know the sudden rise of crypto assets in the past few years. Even the laymen among us have heard terms like cryptocurrencies, bitcoin, blockchain, and so on. Bitcoin is one such name that almost everyone has heard of or read about. It has been the pioneer of cryptocurrency and contributed to a complex yet quite secure network of traders, investors, and miners. But do you know about some cryptocurrencies apart from bitcoin which are quite strong in the market?
By Actual Simple2 years ago in 01
The Best Crypto Exchanges For Investing In 2022
If you want to buy or sell cryptocurrencies in the USA, you will need the best cryptocurrency exchange for investing. In other words, these online platforms provide services similar to stockbrokers, giving us the tools to buy and sell cryptocurrencies such as Bitcoin, Ethereum, Shiba INU, DogeCoin, Tether, etc. Let us see an overview of The Best Crypto Exchanges for Investing in 2022
By Actual Simple2 years ago in Trader