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
