Bitcoin Mining and Security, Part 1

Now a major concern is to make sure our files are protected and no one can change the mentioned files and claim that their address actually contains more cryptocurrencies (Bitcoin, Etherium, Lightcoin etc.) than they own.

This is where “mining” works as a solution

Basically, we have a network that sends thousands of files on “rubber stampers” that can verify the authenticity of the transaction so it checks if everything is genuine and validates the transfer. This allows the sender to spend his bitcoin and in the end you are able to receive it without worry.

Now, this is where human nature begins, we have to compensate our people (or miners) for their time and effort in verifying all these transactions (there is also a cost of energy). Bitcoin leads to “minor”.

Did you see my comment above, “Why not share it with all of us”, Welcome to the 21st Century and the World of Cryptocurrency! After all we are cutting off the middle man (the banker and finally the government) so the “miners” are compensated with bitcoin through the blockchain to make sure all the transactions are genuine, so there is no middle man to manipulate the currency, this is an amazing deal. How for?

So now you have a decentralized currency (no government manipulation or intervention and that is important) being monitored by thousands of miners, who accept and receive a small fee, but are testing the legitimacy and integrity of all these transactions.

It means the 21st century and beyond.

Now, the transaction is covered, but where do I store my bitcoin?

This is where the wallet comes in.

Simply put, you have a unique bitcoin code, this code can be used to send you bitcoin so anyone can see and make it visible for your transactions in the bitcoin environment.

So where do I put my bitcoin?

In the same place you put your money (if you use a wallet) only it is a bitcoin (cryptocurrency) wallet.

All you have to do is enter a unique address where you will store your bitcoin (cryptocurrency) and go to this address to access how many bitcoins you currently hold. This program is accessed online with an email and password.

Okay, this is a simple explanation, I need to go into more detail which I will address in the next article.