Cyber Currency – part 4/5 – Mining and Coins

MINING

  • The purpose of mining
    • Production of a cryptographic journal
    • Time delay and proof of work that serves to prevent counterfeiting
    • Currency expansion by creating new coin as mining rewards
  • Process
    • A request for a new block is issued
    • There is a block calculation competition by miners
    • After a competition has been won, the new block hash is verified
    • A reward is issued in the form of a fraction of a coin
  • Mining pools
    • A collective effort by miners
    • When the pool wins a reward, it is shared with miners according to work level
    • This creates more consistent earnings than solo mining

CYBER COINS

  • Virtual money, encrypted record but no physical token
  • Cyber currency exchanges exist to buy and sell
  • Cyber coins:
    • Bitcoin
    • Litecoin
    • Ethereum
    • Bitcoin cash
    • … about 1,000 more

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