What are CRYPROCURRENCIES? Future currencies.. and What are the miners doing?
What are CRYPROCURRENCIES actually?
If you carry away all the sound nearby cryptocurrencies and lessen it to an easy precision, you realize it to be just finite entries in a database so anyone can't change without attaining specific requirements. It may look like usual, but believe it or not: this is sure how you can explain a currency.
Take the money to your bank account: What is it more than entry records in a database which can be exchanged below specific requirements? You can even catch actual coins and notes: What are they else than finite entries in a general physical database that can only be changed if you combine or link the condition than you physically own the coins and notes? Money is all about an authentic entry in some database of balances, accounts and transactions.
How do miners make coins and verify transactions?
Let us have a sharp look at the technique reigning the directories of cryptocurrencies. A cryptocurrency like bitcoin comprises a vast web of peers and every peer has the complete data history of all transactions as well as the balance of every account.
A transaction is a fundamental public key cryptography. A transaction is transmitted in the network, sent from one peer to every other peer after signing. This is called primary peer to peer technology and nothing special at all again.
The transaction is generally known almost directly by the entire network. But it gets certified only after a specific amount of time.
In cryptocurrencies, confirmation is a vital concept. So cryptocurrencies are all about vital confirmation.
In as much as a transaction remains unconfirmed, it is uncertain and can not be established. So a transaction is put in stone when it is confirmed. It is no longer fake now that's why it cannot be inversed because it is part of the permanent record of authentic transactions of the nominal blockchain.
So it is miners' job to confirm transactions in a cryptocurrency-network. They use transactions, mark them as legal and publicize them in the network. Every point has to connect it to its database after a confirmation transaction by a miner. It has become part of the blockchain.
Then the miners get rewarded with a token of the cryptocurrency for this job, for example with bitcoins.
What are the miners doing?
Generally, everyone can be a miner. Since a decentralized network has no power to delegate this charge, a cryptocurrency needs techniques to stop one reigning party from misusing it. Just imagine if someone makes thousands of peers and widens fake transactions. The system would automatically go down.
Satoshi set this rule that the miners have to spend some time on their computers to allow for this task. Actually, they have to get a product of a cryptographic function that joins the new block with its predecessor. This is called real proof of work.
i think cryptocurrency future is very bright and it will replace the fiat currency very soon. Your post is very very informative and i have learned from your post How do miners make coins and verify transactions?
Thanks brother @hamzayousaf.
Thanks for your appreciation.
Because the Future Of Cryptocurrency is created and managed through the use of advanced encryption techniques known as cryptography. so it is hoping the bright future always.
That's true Crypto currency is the advance form of currency for modern era and I support it but don't you think mining is damaging our environment a lot.
We are consuming a hell of a lot of energy which in result is increasing our carbon footprints.
Yeah it is true, Proof-of-work mining has some negative environmental impacts… as do the systems behind most other mediums of exchange. In other words, proof-of-work mining takes a lot of computing power.
So it’s worthy for people to experiment with their investment portfolios in cryptos really carefully.
You got a 4.02% upvote from @postpromoter courtesy of @hamzayousaf!
Want to promote your posts too? Check out the Steem Bot Tracker website for more info. If you would like to support the development of @postpromoter and the bot tracker please vote for @yabapmatt for witness!
Thanks. Nice Post.
very helpfull post deear most of peoples have not believe in crypto but because they have not believe in their self but inshaAllah paper money will become serender in crypto . crypto is future genuration currency
According to This Futurist, Cryptocurrency Will Replace National Currencies By 2030. so
It’s value will be continued to be up as people would soon see this.
I don't think crypto-currency will replace fiat very soon because unfortunately the greed of our governments have no limits but i do belive that blockchain will start to be adopted by more and more niches.
We will see what future will bring us... all we have to do is be the same and try to change only in better. I am really glad we are the first adopters of the the crypto-currency!
Wish you a great week-end and always Steem On!
Cryptocurrencies will certainly replace fiat money sooner than you think. To begin with ... Most cryptocurrencies are also extremely secure due to the use of dual-sided cryptography for every transaction.
Bitcoin may have taken a dip, while numerous other cryptocurrencies vie for the spotlight. But that doesn’t mean cryptocurrency itself is about to crash.
Thanks for sharing your valuable thoughts
Today crypto currencies become a global phenomenon known to most people. while still somehow geeky and not understood by most people, banks, governments and many companies are aware of its importance.
Cryptocurrency is a disruptor to the banking industry that should be taken seriously. The lack of intermediaries and oversight in cryptocurrency, which operates on peer-to-peer transactions, makes it remarkably attractive for investors, who can cut out fees for banks and financial advisers.
A cryptocurrency is a digital or virtual currency designed to work as a medium of exchange. It uses cryptography to secure and verify transactions as well as to control the creation of new units of a particular cryptocurrency. Essentially, cryptocurrencies are limited entries in a database that no one can change unless specific conditions are fulfilled.
Thank you very much for such nice addition from your side.
Miners help keep the cryptocurrency network secure by approving transactions. Mining is an important and integral part of every cryptocurrency that ensures fairness while keeping the cryptocurrency network stable, safe and secure🙂
Yeah agreed... mining plays a much more important role in the future of cryptocurencies. Overall, the crypto market cannot function without it.
Thank you for giving your feed
Well explained bro. I might add that in the case of Bitcoin, for one block, only one miner, who is able to solve the puzzle gets the reward, which is 12.5 bitcoins currently. All other miners just get the fee for verifying.
Yeah right... Thank you for addition