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Learning Bitcoin

Learning Bitcoin

By : Caetano
3 (3)
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Learning Bitcoin

Learning Bitcoin

3 (3)
By: Caetano

Overview of this book

The financial crisis of 2008 raised attention to the need for transparency and accountability in the financial world. As banks and governments were scrambling to stay solvent while seeking a sustainable plan, a powerfully new and resilient technology emerged. Bitcoin, built on a fundamentally new technology called “The Blockchain,” offered the promise of a new financial system where transactions are sent directly between two parties without the need for central control. Bitcoin exists as an open and transparent financial system without banks, governments, or corporate support. Simply put, Bitcoin is “programmable money” that has the potential to change the world on the same scale as the Internet itself. This book arms you with immense knowledge of Bitcoin and helps you implement the technology in your money matters, enabling secure transactions. We first walk through the fundamentals of Bitcoin, illustrate how the technology works, and exemplify how to interact with this powerful and new financial technology. You will learn how to set up your online Bitcoin wallet, indulge in buying and selling of bitcoins, and manage their storage. We then get to grips with the most powerful algorithm of all times: the Blockchain, and learn how crypto-currencies can reduce the risk of fraud for e-commerce merchants and consumers. With a solid base of Blockchain, you will write and execute your own custom transactions. Most importantly, you will be able to protect and secure your Bitcoin with the help of effective solutions provided in the book. Packed with plenty of screenshots, Learning Bitcoin is a simple and painless guide to working with Bitcoin.
Table of Contents (10 chapters)
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9
Index

Chapter 6. Understanding the Mining Process

 

"We have elected to put our money and faith in a mathematical framework that is free of politics and human error."

 
 --Tyler Winklevoss, Entrepreneur

The Bitcoin network distributes newly-minted bitcoin through a novel approach called Mining. By voluntarily supplying raw computing power, miners serve the network by validating and confirming Bitcoin transactions. In return, the miners are awarded bitcoins from a limited supply. Along with each award, they collect fees included with the transactions they choose to validate.

Bitcoin mining, an important aspect of the network, is highly competitive and involves many technical factors. In this chapter, we will explore the mining process in more detail. With this base understanding of the process, we will be able to understand the feasibility of mining.

In this chapter, we will discuss the following topics:

  • Explanation of the mining ecosystem, mining pools, and available...

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