Bitcoin is a period of time all of the per transaction records in the transaction ledger a postscript by consistency has managed the.
In the write-once processing, network taken up to now have been distributed to book data and the integrity of the data of all the transactions that have occurred in the period of the write-once recording that will be asked.
However, since the data of one large transaction ledger that is distributed and stored and the data of the transaction to be newly added are all accurately verified and then added, the work to obtain the consistency requires a huge amount of calculation.
Where do you borrow your computing power from?
Therefore, Bitcoin borrows computer resources from volunteers for this additional work in order to handle a huge amount of calculation.
- By borrowing the computing power of the surplus computer, it becomes possible to do a huge amount of calculation, and we are adding to one large trading ledger shared by everyone.
- New Bitcoin is presented as a thank you for lending your computing power
- Even if you lend me the computing power, if there is no return, no one will lend.
- If you’re a volunteer and you lend your computer, it’s better to watch online games and YouTube.
- So Bitcoin is paying new Bitcoins as a reward for lending computer resources.
- This reward will be paid by the newly issued Bitcoin.
- That is, a new issue of currency will occur at this time.
- As a form of appreciation for the volunteers for lending their computer’s computing power, they gave us a newly issued Bitcoin as a gift, also you can use bitcoin for traveling
Mining = flow until new issue
The computing power as described above lend by new issue of Bitcoin “to a series that is paid mining (mining) is called.”
Nakaniwa, computer of the computing power change to the money business is completely split with, the people who are working hard day and night mining (mining) around the world exist in, the people miners (minor) are called.
However, mining (approval) method of the current bit coin Proof of Work for that is the (mining method that is based on the CPU, GPU performance), mining dedicated an essential computer of the new entrants is difficult situation has become.
Bitcoin is still safe thanks to its people.
The new issue of Bitcoin as a currency can only be done through this mining.
Therefore, miners who believe in the development of Bitcoin are adding to one large trading ledger day after day as mining activities one after another.
This is the reason for the blockchain technology that maintains the authenticity of Bitcoin.
Address and wallet
- When using Bitcoin, there is something like an “account number “, which is called an address.
- Bitcoin consists of 27 to 34 alphanumeric characters starting from 1 or 3.
- Of the address aggregates that of the purse (wallet) says that.
- Bitcoin wallets are roughly divided into four types.
- Desktop wallet (wallet on PC)
- Web wallet (wallet on web), mobile wallet (wallet on smartphone)
- Paper wallet (wallet printed on paper)
- Hardware wallet (special wallet terminal)
- There is a high risk of hacking damage if you leave it at an overseas exchange, but you can increase the safety by moving it to the wallet.
- Initial wallet costs are high, but hardware wallets are particularly low risk.
Wallet on mobile device
It is a wallet that operates as an application on iPhone and Android.
This is very convenient for actual store use because you can use a QR code and it is easy to carry.
iOS is bread wallet or Copay; Android is Mycelium or Copay is recommended.
Wallet on computer
On your computer installation and local environment is a wallet that can be managed by.
This wallet is easy to use, has the advantages of high functionality and excellent security.
But, first install and configure the flame correct it is a disadvantage.
Also, be careful of backup and security settings, as it may happen that your PC malfunctions and you cannot retrieve Bitcoin, or it may be stolen due to virus infection or hacking damage.