What is Bitcoin Anyway?
A transaction is a file that states: Tim sends X bitcoin to Tammy and is signed by Tim. Once Tim signs, the transaction is broadcast to the network , sent from one peer, to every-other peer.
After a specified time the transaction is confirmed by the miners, which is the only way a transaction can be confirmed. That is their soul purpose in the Cryptocurrency network. They validate transactions, then spread them to the network.
The miners are given an incentive to complete these tasks by receiving payment in cryptocurrencies. In this example, they are paid in Bitcoin. After a transaction is confirmed by a miner, all the other nodes in the network must add it to their database and it becomes part of the block-chain.
Who can mine Bitcoin?
Any one can be a bitcoin miner, they just need to give up a considerable amount of their computers power to make sure they can execute the task.
Miners across the network compete to solve a cryptographic puzzle. The first miner to complete the transaction and add it to the block-chain is the miner to receive the bitcoin reward. Essentially that’s it.
There are many underlying benefits of using cryptocurrency which i will go into in more detail in various places on our website. I just wanted to clear up any misconceived notions as to what bitcoin was. Bitcoin is not fake internet money, it did not come out of thin air. Bitcoin and other digital currencies solve real world problems, have real value based on real work by real people and computers and some ( including myself) say it (Bitcoin), or at the very least, block-chain technology, is the future of payments. I personally believe it will be integrated into every technology that utilized the internet of things (iot).