What is Bitcoin and How Mining is Used for Bitcoin?

July 6, 2020

Bitcoin is a virtual currency. What is virtual currency? What is Bitcoin? In a nutshell, it is a ” virtual currency.” It is “virtual” “currency”. First of all, bitcoin is money, as you can see from “currency” and “coin”. It is still “money” like yen or dollar. Since it is “money”, there are currency units such as yen and dollar. You can count as 1 BTC (1 bit coin) like 1 yen or 1 dollar.

However, as you can see from the “virtual”, unlike the yen and the dollar, there is no visible shape for the hand. There is no coin that has a large “B” written on it. Bitcoin is a “virtual” “currency.”

Common virtual currency examples

The currency in an online game is easy to imagine as a virtual currency. If you pay yen or dollars to get the currency used in the game, you can buy the item at the in-game store where you can use the currency used in the game. A virtual currency that can only be used in-game.

Other virtual currencies exist only on certain websites. There are websites that use the mechanism of purchasing 1,000 points for 1,000 yen at the time of registration for use, and purchasing paid services for the 1,000 points. It is a virtual currency that is valid only within the “usable” website.

Bitcoin is similar. If you can get Bitcoin, you can buy goods and services where “use” Bitcoin.

Mining to generate bitcoins

What is Bitcoin mining?

Bitcoin adds all transaction records to the transaction ledger at regular intervals. For the processing of the additional recording, it is required to accurately record the data of the transaction ledger that is distributed and stored on the network and the data of all the transactions that occurred during the target period of the additional recording while maintaining consistency. ..

The task of achieving that consistency can be achieved by computer calculation, but it requires a huge amount of calculation. It is necessary to accurately verify all the data of one large trading ledger data that is distributed and stored and the data of the transaction to be added before adding the data.

Therefore, Bitcoin borrows volunteer computer resources for this additional work. By borrowing the computing power of the surplus computer, we are doing a huge amount of calculation and adding it to one large trading ledger that everyone shares.

Bitcoin will be paid in return for those who helped with this postscript work, those who did a huge amount of calculation for the postscript work, and as a result succeeded the postscript process. In other words, Bitcoin will be paid as a reward for helping the additional writing work so that the entire Bitcoin can be operated soundly.

This reward will be paid by the newly issued Bitcoin. In other words, new currency issuance occurs at this moment.

Whether you are playing a game or playing online, the new Bitcoin is a modest thank you to those who have contributed to the development of Bitcoin as a whole by carrying out huge calculations. Is issued.

The act leading to this new issue is called “mining “. There are several guys all around the world who are striving for mining day and night; allocating the computer’s computing power to money. Thanks to that, Bitcoin is still safe today.

The new issue of Bitcoin as currency can only be done through this mining. Therefore, people who believe in the development of Bitcoin are focusing their efforts on mining activities (= updating one large trading ledger) one after another.

Who manages Bitcoin?

If the currency is exactly the same as the yen or dollar, there is no need to create a new currency.

The top difference among these is that there is no “central bank” to control the currency. Bitcoin does not have an issuing organization or an organization that manages distribution. Use for mining.

Bitcoin is not a virtual currency operated by a nation or a company. Even though it is a currency similar to the yen and the dollar, no country or company is involved in the issuance and distribution of bitcoins. This insane concept is the main feature of Bitcoin.

What is Bitcoin and How Mining is Used for Bitcoin? was last modified: by

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