The digital currency bitcoin was created eight years ago by Satoshi Nakamoto though his identity is not known and whether the name represents a single person or a group of person. It was created in the aim to have a currency that is not controlled by any authority or the central bank.
The users that are mining bitcoins are operating independently thus it is a challenge to have a record of the actual number as well as the size. When it comes to the computing capacity of the entire network, it is said to be that earlier this 2016 the power is 43,000 more than that of 500 supercomputers put together.
Computers that belong to large mining pools have the ability to solve complicated mathematical problems that are automatically generated. These puzzles are there to help ensure every transaction block and make sure that the network will not be hacked or else manipulated. For the users of the digital currency, the main reason why the virtual currency is so attractive is because of its security.
Once a miner has already done securing a block filled with transaction, other miners that are also in the network are the ones verifying. The block is then put together with all the other blocks in a system called blockchain wherein all the transaction data that has ever happened in bitcoin is recorded. This blockchain is very hard to manipulate since there are miners always checking if the system is still legit. The mining, in essence, is the very heart of the bitcoin network that keeps it alive.
Nowadays, bitcoin is already accepted by merchant especially huge organizations. Overstock.com, an online retailer in the United States, and Expedia, the travel firm, are some of the examples.
Many users are attracted to the prospect of the bitcoin because of the fast transaction which are not monitored by a central body. Many investors are also eager to learn about bitcoin since it has proven to be a profitable commodity. The secret for these mining firms to profit is to make sure that their profit must not be less than the expenses such as electricity.