If you are familiar with Cryptocurrency, then you may be wondering how it gets created.
The process of generating new tokens is completed through a process known as Crypto-mining.
But what exactly is this, and how does it work?
We have some answers for you.
The basics of blockchain
The foundation of Cryptocurrency is in the distributed ledger technology known as blockchain.
Whenever a Crypto transaction is processed, it gets recorded on the blockchain.
The blockchain is tamper proof, highly secure, and ideal for financial transactions.
But these transactions need to be verified, and it is this verification process, which is known as mining.
As noted above, every Crypto transaction has to be verified before being added to the blockchain.
The reward given to those who verify these transactions, is to be given more Crypto tokens - this is mining.
But in addition to verifying transactions, miners need to complete increasingly complicated equations to match a 64 digit number to the specific block.
Only then is a miner rewarded with new Bitcoin.
It requires a lot of processing power, and enormous amounts of energy.