Cryptocurrencies such as bitcoin act as a point-to-point network, this means that all those who use a cryptocurrency such as bitcoin are a small fraction of the bitcoin bank.
Let’s continue with the example of bitcoin to know what it is really to undermine a cryptocurrency, but it is worth noting that not all the critics of the market are undermined. To learn about the mining of bitcoin, we have to learn where the bitcoin comes from. With money on paper, the government decides when to print and distribute that money, but bitcoin does not have a central bank.
With bitcoin the miners use special software to solve mathematical problems, and in return they are rewarded with small amounts of bitcoin. This provides an intelligent way to issue currency, and at the same time it is an incentive for more people to mine. And because the miners are required to approve the transactions of this cryptocurrency, more miners mean greater security.
The bitcoin network, like other cryptocurrencies on the market, automatically changes the difficulty of mathematical problems, depending on how quickly they are being solved.
In the first days the bitcoin miners solved these problems with the processors of their computers, nowadays these mathematical calculations are carried out with more advanced processors. There are many platforms that use mining to solve mathematical calculations, possibly the best known is the bitcoin digital currency, but there are more than 2000 cryptocurrencies on the market that do it.
¿What are the mathematical calculations solved by the miners? The mathematical calculations are the encryption algorithms of each transaction, if I send x amount of bitcoin to another person that transaction is encoded. The miners enter, they decode the transaction, validate it and register it. In this way it can not be altered or duplicated once the transaction is validated is recorded. And for that work to decode and validate 12.5 new bitcoin are generated that are distributed among all miners who worked all that is already programmed in the bitcoin algorithm, bitcoin must be seen as a free software that we can each have a part of He and that part has a value. Is it profitable to mine bitcoin? There are cryptocurrencies that are profitable, Monedo, Ethereum, etc. Bitcoin is not profitable with a simple computer since the mathematical calculations that we have to solve are more advanced.