The network treats the results of these hashes as lottery tickets, and every 10 minutes one miner is declared the winner. They use specialised computers, called mining rigs, to perform a specific mathematical function called “hashing”. The system means that it is very expensive to attack a cryptocurrency head-on: you need to spend more electricity than every other miner put together.Ī miner is the person running a cryptocurrency node. Every 10 minutes, one of those raffle tickets wins the prize – a reward of cryptocurrency, and the right to verify the next block on the blockchain. It asks “miners”, who run the computer nodes that make up the physical infrastructure of the blockchain network, to effectively burn electricity to generate digital raffle tickets. Proof of work is the consensus algorithm used to secure bitcoin, ethereum and many other large cryptocurrencies. There is no one “official” blockchain, but the network as a whole is kept consistent through a consensus algorithm like proof of work. New transactions are added on to the end of the blockchain, and using cryptography contain a record of every previous transaction. Ethereum is the second biggest, and is used as a platform for building other decentralised projects, such as stablecoins, NFTs and shitcoins.Ī blockchain is the decentralised ledger that tracks the ownership of a cryptocurrency or other digital asset. The first, and still the largest, cryptocurrency, is bitcoin, and its blockchain is secured by miners using a proof-of-work system. A cryptocurrency is a decentralised digital asset built on top of a blockchain.
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