Ormeus Coin- An Insight into Cryptocurrency Mining

May 28th, 2018 | by admin
Ormeus Coin- An Insight into Cryptocurrency Mining

The term cryptocurrency mining is not familiar to many people. However, if you use the term bitcoins, they will have a fair idea of what it means and implies. You can associate it with monetary transactions for exchange except in this case there are no government authorities governing it.

Ormeus Coin- how does cryptocurrency mining work?

Ormeus Coin is a leading name in North America when it comes to cryptocurrency mining. The experts here give you an example of the banking system where say A gives X sum of money to B through a banking channel. Now, you may ask yourself the question as to what is the proof that the transaction has taken place? Is there any confirmation of the transaction taking place at all? If you are aware of the traditional banking system, you will say that the bank confirms the transaction that has taken place between A and B. Now, what happens when there is a decentralized cryptocurrency like bitcoins? How are their transactions confirmed? Here there is no bank involved as the government does not govern bitcoin transactions!

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Proof of bitcoin transactions

Now, in the case of bitcoin transactions there is no government involved. It is here that miners step into the scenario. In the transactions of cryptocurrency, it is these miners that confirm the bitcoin transaction. They like banks have a public ledger where all transactions are recorded. This ledger is called blockchain. The transaction details are recorded and then they are passed to other miners of cryptocurrency for validation of the transaction. This makes them get an award like for instance, in the case of bitcoin transactions miners get a bitcoin. In this case, the reward is given to the first cryptocurrency miner that validates the transaction that has taken place. This reward system automatically attracts other miners and increases the number of validations. This is what makes the bitcoin transaction secure and safe.

Are cryptocurrency miners people?

Cryptocurrency miners are not people. They are computers known as nodes. These nodes are connected to one another in the cryptocurrency network. The network is a digital one and there are no people involved in the validation process of transactions made via bitcoins.

Mining and transactions

People across the world are sending bitcoins to one another across the world. However, unless you do not keep a written record of all the transactions no one could keep track of the total number of transactions that are taking place of who paid how much and to whom. This is where the blockchain technology comes into play. All the bitcoin transactions that have taken place in a specific period is called a block. The miner here has the sole responsibility to confirm that transaction and record them in the blockchain.

The experts here at Ormeus Coin say that the blockchain keeps the records of all the transactions taken place in the bitcoin network. All the transactions are permanently stored there. Miners get a constantly updated copy of the block to every bitcoin miner that participates in the validation of the transaction that takes place. This makes it simple for them keep track of all the previous set of mining transactions that have taken place in the bitcoin network.

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