The miners keep cryptocurrency users honest!īear in mind however that, unlike traditional currencies, cryptocurrencies don’t belong to a central bank, meaning they have no government backing. This step ensures the validity of the currency, with no one able to use the same money twice. The miners, who are like auditors, are then rewarded with a small amount of cybercurrency. These transactions are then verified by ‘cryptomining’, which is legitimate and a critical part of how cryptocurrencies work.Ĭryptomining uses the processing power of computers to solve complex mathematical problems and verify cybercurrency transactions. If you buy or sell cryptocurrency, or even use it to buy a coffee at a trendy ‘we accept bitcoin’ café’, it will be recorded in this digital register. Technology known as ‘blockchain’, acts as a digital register that records all transactions relating to a virtual currency. There are currently more than 1,000 cryptocurrencies the most common being Bitcoin, Monero and Ethereum. Cryptocurrencies such as Bitcoin are virtual currencies, which means they exist only online and there are no physical notes and coins.
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