Cryptocurrency based on BlockChain technology like Bitcoin, Ether and technology behind that is making a buzz nowadays.Though it’s a bit late in India it has the good presence in developed countries like USA, UK, Japan. China is also getting a lot in cryptocurrency.Still it’s a best time to start Mining Crypto Currency in India.
“ A cryptocurrency (or cryptocurrency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency .”
Seems difficult to understand, let’s understand in the layman terms, cryptocurrency is nothing but our regular currency like Rs or Dollar which can be used to purchase good and can be exchanged. When we compare the cryptocurrency with our know currency many questions arises.
1. Who issued the currency?
The currency like bitcoin was created by Satoshi Nakamoto(Not known whether he is an individual or a group).They defined the rule by which it can be created or exchange. Not its managed by millions of computers by millions of community member. So we can say billions of computers are managing the currency and community members can be termed as the miner.
2. Who is controlling it?
No is controlling cryptocurrencies like Monero, Zcash, Ether or Bitcoin. , it’s managed by the community with the millions computer connected in a peer to peer network.
3. How does it look like?
It’s not physical, definition itself say’s its digital asset which has value depending on the market demand and supply.
4. How an Individual or Organization holds the currency?
Individual or Organization holds the cryptocurrency in the digital wallet created by them. One can open as many wallets as possible. No one is monitoring.
5. Is it legal?
Yes, it is. Many countries are using digital currency as a medium of exchange, many countries are planning to launch their own digital currency. China and Russia will be the first as per current news. The major concern is tracing and many governments are working on that.
What is Cryptocurrency Mining
Let’s start with a simple example of current banking System
“ Suppose User “A” wants to transfer the money to User “B” he uses online Banking System to Transfer the funds. Here Bank is the centralized authority that maintains the ledger and confirms the transaction against a small transaction fee.”
But in digital coins no one is the central authority, every computer that runs the bitcoin or monero node is the authority and he approves the transaction.So a very small fraction of the transaction amount goes to the computer owner who confirms the transaction. That computer owner is termed as miner and process is called as Crypto Currency Mining.
You can also say “Your Powerful Computers are Miners you can decrypt and approve the transaction.
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