June 6, 2017, Comment off
Bitcoin Mining: The process of verifying transactions conducted on the network using bitcoin mining software and hardware.
As a reward, Bitcoin miners receive Bitcoins for their work, a new block is created around every 10 min. The current reward is 25 bitcoins, this value halves every four years until all bitcoins am mined.
Start by setting up a Secure wallet to hold your coins
And then fill it up with 2 options:
1) Through the process of Bitcoin mining.
2) Through a trusted Bitcoin Exchange.
There are 3 parties involved in every exchange platform
The Buyer, the Exchange, the Seller.
The buyer try to buy bitcoin at the lowest possible price
The seller try to sell bitcoin at the highest possible price
The exchange earns a commission in the middle
The buying and selling bids are entered into what is called as an order book.
When the buyer and seller make the same bids, the exchange is executed.
The exchange keeps a small percentage of the amount as commission.
A wants to buy something from B’s store.
B provides A with a unique address to send the payment: Eg: 1jdhdjYKbc64nKKLkd
A send the amount to B using the unique address. the transaction is processed by the miners. B receives the amount via the miners and the transaction is recorded in a distributed ledger.
Cryptography and Blockchain make sure that transactions are secure.
The unique address that a seller provide is sort of a Public key or like a physical address that they can give to anyone.
The private key is held by the owner of the wallet who has purchased or received bitcoins. Without his digital signature/password, the bitcoin transaction cannot take place.
Currently(6th June ’17), bitcoin is worth INR 1,85,009.67 or USD 2879.00
But people are allowed to trade in decimal units if this currency. Eg: Send/buy 0.1 BTC
List of Global Bitcoin Wallets can be found here.
Let us Know if you are working on or interested in Bitcoin and Blockchain. We would be happy to help!
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