What is Bitcoin Mining and How Does it Work? (2020 Updated)

Bitcoin - The Currency of the Internet

A community dedicated to Bitcoin, the currency of the Internet. Bitcoin is a distributed, worldwide, decentralized digital money. Bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. You might be interested in Bitcoin if you like cryptography, distributed peer-to-peer systems, or economics. A large percentage of Bitcoin enthusiasts are libertarians, though people of all political philosophies are welcome.
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New to Bitcoin? Confused? Need help? You've come to the right place.

Bitcoin is an internet based decentralised currency. Similarly to Bittorrent, but Bitcoin uses a public ledger called the blockchain to record who has sent and received money. It's very new, and for many very confusing. BitcoinHelp aims to rectify this. Whether it be explaining how it works, how to use it, how to buy Bitcoins, how to integrate Bitcoins into your business. Sharing your successes as well as failures in order to help others is also gladly received. Ask away!
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StableCoin

This subreddit is dedicated to inform and discuss the revolutionary cryptocurrency Stablecoin.
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Does my explanation of bitcoin mining make sense?

There are 10 groups of 10 cars. You can choose to push the cars alone, or in a group, and whoever moves all 10 cars to the finish line gets a token worth money. The more people you have to push the cars, the faster you can get one token. Then it resets to the beginning, but another car is added, each time someone gets the token.
submitted by ethanbrecke to NoStupidQuestions [link] [comments]

For Moronic Monday - Fantastic explanation of Bitcoin Mining

For Moronic Monday - Fantastic explanation of Bitcoin Mining submitted by ryuthless to Bitcoin [link] [comments]

Nice explanation of Bitcoin mining

Nice explanation of Bitcoin mining submitted by draq100 to Bitcoin [link] [comments]

Hey guys, I've spend quite some time working on a Bitcoin mining guide that provides a broad overview and explanation of Bitcoin mining while still explaining it simply enough for the average person to understand what it is. I'd appreciate it if you check it out!

Hey guys, I've spend quite some time working on a Bitcoin mining guide that provides a broad overview and explanation of Bitcoin mining while still explaining it simply enough for the average person to understand what it is. I'd appreciate it if you check it out! submitted by busterroni to Bitcoin [link] [comments]

A simple video explanation of Bitcoin Mining.

https://www.youtube.com/watch?v=MJ0OzrkHvXA
I made this video to try and explain how Mining really works in as simple terms as possible. I did some quick coding at the end to show how a you could try mining your own blocks if you wanted to.
I hope it all makes sense, and that I didn't move too quickly.
submitted by in3rsha to BitcoinBeginners [link] [comments]

Bitcoin mentioned around Reddit: Does my explanation of bitcoin mining make sense? /r/NoStupidQuestions

Bitcoin mentioned around Reddit: Does my explanation of bitcoin mining make sense? /NoStupidQuestions submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Down-to-earth explanation of Bitcoin/Mining/Decentralization

Down-to-earth explanation of Bitcoin/Mining/Decentralization submitted by BitcoinAllBot to BitcoinAll [link] [comments]

A simple video explanation of Bitcoin Mining. /r/BitcoinBeginners

A simple video explanation of Bitcoin Mining. /BitcoinBeginners submitted by BitcoinAllBot to BitcoinAll [link] [comments]

For Moronic Monday - Fantastic explanation of Bitcoin Mining

For Moronic Monday - Fantastic explanation of Bitcoin Mining submitted by moon_drone to BetterBitcoin [link] [comments]

Top 50 Cryptocurrencies

Top 50 Cryptocurrencies
I thought this might be of real help for the ones that are just joining crypto and still want to read.
Let’s face it: there are a lot of cryptocurrencies out there, with new ones coming out almost daily and old ones disappearing seemingly just as fast as they appeared. It’s easy to get overwhelmed.
If you are new to cryptocurrencies, this is an excellent starting point to learn about each of the top 50 cryptocurrencies (by market cap). Even if you’re a crypto veteran, this is a great resource to reference if you ever get any of the top 50 confused, or if you want to read more about a new coin which has joined the ranks.
Our hope is to point you in the right direction, spur your interest to do more research, and steer you away from the potential scams out there (And yes, there are potential scam coins in the top 50!)
Here at Invest In Blockchain, we are obsessed with researching the internet for all things crypto. The information found in this post is the result of hundreds of hours of painstaking research by me and other writers on our team.
Note that this list is constantly changing and I will do my best to keep it up-to-date, but the top 50 moves almost daily! Please refer to coinmarketcap.com for the latest information on the top 50 cryptocurrencies and their prices.
Let’s get started!
(Information accurate as of May 23, 2018)

#1 – Bitcoin (BTC)

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The king of the crypto world, Bitcoin is now a household name; to many, it is synonymous with “cryptocurrency”. Its purpose is to provide a peer-to-peer electronic version of cash to allow payments to be sent online without the need for a third party (such as Mastercard).
The rapid rise in Bitcoin’s price has brought about an explosion of new Bitcoin investors. With the huge increase in interest has come a rise in merchants accepting Bitcoin as a legitimate form of payment. Bitcoin is fast moving towards its goal of becoming a currency accepted worldwide.
Bitcoin’s development is led by Bitcoin Core developer Wladimir J. van der Laan, who took over the role on April 8, 2014. Bitcoin’s changes are decided democratically by the community.
For an in-depth look at Bitcoin, including an explanation of Bitcoin mining, Bitcoin’s history, an analysis of Bitcoins’ value and a description on how bitcoin actually works, see our comprehensive guide “What is Bitcoin? Everything You Need to Know About Bitcoin, Explained“.
For a more detailed description of Bitcoin’s economics, what makes money and how Bitcoin works in the economy as a whole see: “Bitcoin Explained” and “Bitcoin is a Deflationary Currency”.

#2 – Ethereum (ETH)

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Ethereum is the revolutionary platform which brought the concept of “smart contracts” to the blockchain. First released to the world in July 2015 by then 21-year-old Vitalik Buterin, Ethereum has quickly risen from obscurity to cryptocurrency celebrity status.
Buterin has a full team of developers working behind him to further develop the Ethereum platform. For more background information on Buterin, read our article, “Vitalik Buterin: The Face of Blockchain”.
Ethereum has the ability to process transactions quickly and cheaply over the blockchain similar to Bitcoin, but also has the ability to run smart contracts. For future reading on smart contracts, see “What’s the Difference Between Bitcoin and Ethereum”; but for now, think automated processes which can do just about anything.
For further reading on Ethereum, including an analysis of the platform’s strengths and future prospects, read “What is Ethereum, Everything You Need to Know Explained“.

#3 – Ripple (XRP)

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Ripple aims to improve the speed of financial transactions, specifically international banking transactions.
Anyone who has ever sent money internationally knows that today it currently takes anywhere from 3-5 business days for a transaction to clear. It is faster to withdraw money, get on a plane, and fly it to your destination than it is to send it electronically! Not to mention you will be paying exorbitant transaction fees — usually somewhere around 6% but it can vary depending on the financial institution.
Ripple’s goal is to make these transactions fast (it only takes around 4 seconds for a transaction to clear) and cheap.
The Ripple team currently comprises over 150 people, making it one of the biggest in the cryptocurrency world. They are led by CEO Brad Garlinghouse, who has an impressive resume which includes high positions in other organizations such as Yahoo and Hightail.
Check out “What is Ripple” for more information, including a closer look at what they do, controversies and future prospects.

#4 – Bitcoin Cash (BCH)

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Bitcoin Cash was created on August 1, 2017 after a “hard fork” of the Bitcoin blockchain. For years, a debate has been raging in the Bitcoin community on whether to increase the block size in the hope of alleviating some of the network bottleneck which has plagued Bitcoin due to its increased popularity.
Because no agreement could be reached, the original Bitcoin blockchain was forked, leaving the Bitcoin chain untouched and in effect creating a new blockchain which would allow developers to modify some of Bitcoin’s original programmed features.
Generally speaking, the argument for Bitcoin Cash is that by allowing the block size to increase, more transactions can be processed in the same amount of time. Those opposed to Bitcoin Cash argue that increasing the block size will increase the storage and bandwidth requirement, and in effect will price out normal users. This could lead to increased centralization, the exact thing Bitcoin set out to avoid.
Bitcoin Cash does not have one single development team like Bitcoin. There are now multiple independent teams of developers.
Read “What is Bitcoin Cash” for more information. You can also check out their reddit and official webpage.

#5 – EOS (EOS)

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Billed as a potential “Ethereum Killer”, EOS proposes improvements that can challenge Ethereum as the dominant smart contract platform. One main issue EOS looks to improve is the scalability problems which has plagued the Ethereum network during times of high transaction volume, specifically during popular ICOs.
A perhaps more profound difference EOS has, compared to Ethereum, is the way in which you use the EOS network. With Ethereum, every time you make modifications or interact with the network, you need to pay a fee. With EOS, the creator of the DAPP (decentralized app) can foot the bill, while the user pays nothing. And if you think about it, this makes sense. Would you want to have to pay every time you post something on social media? No, of course not!
In addition to this, EOS has a few other technical advantages over Ethereum such as delegated proof of stake and other protocol changes. Just know that EOS has some serious power under the hood to back up the claim of “Ethereum Killer”.
EOS was created by Dan Larrimer who is no stranger to blockchain or start ups. He has been the driving force behind multiple successful projects in the past such as BitShares, Graphene and Steem.
For more information on EOS such as how and where to buy EOS tokens, EOS’s vision and potential challenges, see “What is EOS”.

#6 – Litecoin (LTC)

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Similar to Bitcoin, Litecoin is a peer-to-peer transaction platform designed to be used as a digital currency. Due to some notable technical improvements, Litecoin is able to handle more transactions at lower costs. Litecoin has been designed to process the small transactions we make daily.
Litecoin is sometimes referred to “digital silver” while Bitcoin is known as “digital gold”. This is because traditionally silver was used for small daily transactions while gold was used as a store of wealth and was not used in everyday life.
The Litecoin blockchain is a fork from the Bitcoin chain. It was initially launched in 2011 when its founder, Charlie Lee, was still working for Google. Well-known as a cryptocurrency expert, Charlie Lee is backed by a strong development team who appear to be achieving what they set out to do. They have recently achieved a very notable accomplishment with the first successful atomic swap.
For an in-depth discussion on what Litecoin does, how it is different than Bitcoin and the team backing up the development, see “What is Litecoin”.

#7 – Cardano (ADA)

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Cardano is a smart contract-focused blockchain. It was originally released under the name Input Output Hong Kong by Charles Hoskinson and Jeremy Wood, a few of the early team members of Ethereum, and later rebranded into Cardano.
Cardano is trying to fix some of the largest problems the cryptocurrency world which have been causing ongoing issues for years such as scalability issues and democratized voting.
They have the potential to challenge Ethereum’s dominance in the smart contract world. Cardano is developing their own programing language similar to Ethereum; however, they are focusing more heavily on being interoperable between other cryptocurrencies.
While some cryptocurrencies are all bite but no bark, Cardano is quite the opposite. They are quietly focusing on a strong software which will be completely open-source.
Cardano’s team comprises some of the best minds in the industry, and they seek to create a strong foundation which others can build upon for years to come.
For up-to-date information on Cardano’s status see their Reddit page or official website. You can also read our article “What is Cardano” to learn more about them.

#8 – Stellar Lumens (XLM)

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In a nutshell, Stellar Lumens seeks to use blockchain to make very fast international payments with small fees. The network can handle thousands of transactions a second with only a 3-5 second confirmation time.
As you may know, Bitcoin can sometimes take 10-15 minutes for a transaction to confirm, can only handle a few transactions a second and, in turn, has very high transaction fees.
If this sounds a lot like Ripple, you’re right! Stellar Lumens was based off of the Ripple protocol) and is attempting to do similar things. Some of Stellar Lumens’ main uses will be for making small daily payments (micropayments), sending money internationally, and mobile payments.
Stellar Lumens is focusing on the developing world and, more specifically, the multi-billion dollar industry of migrant workers who send money back to their family in impoverished countries.
The Stellar Lumens team is led by Jed McCaleb, who has worked in numerous successful startups in the past such as eDonkey, Overnet, Ripple, and the infamous Mt. Gox.
For more information on Stellar Lumens, including the history and what sets Stellar Lumens apart, see “What are Stellar Lumens”. You can also learn about the differences between Stellar Lumens and Ripple.

#9 – TRON (TRX)

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As stated in TRON’s whitepaper, “TRON is an attempt to heal the internet”. The TRON founders believe that the internet has deviated from its original intention of allowing people to freely create content and post as they please; instead, the internet has been taken over by huge corporations like Amazon, Google, Alibaba and others.
TRON is attempting to take the internet back from these companies by constructing a free content entertainment system. This will enable users to freely store, publish and own data, giving them the power to decide where and how to share.
The project is led by founder Justin Sun, who has been listed on the Forbes 30 under 30 list twice (in 2015 and 2017). In addition, Sun is a protégé of Jack Ma, founder of Alibaba Group, China’s former Ripple representative and the founder of Peiwo APP.
Sun has assembled a strong team with heavy hitters including Binshen Tang (founder of Clash of King), Wei Dai (founder of ofo, the biggest shared bicycles provider in China), and Chaoyong Wang (founder of ChinaEquity Group). Sun has also secured the support of a few notable angel investors such as Xue Manzi.
For up-to-date information on Tron and further discussion of the technology and team, see “What is Tron” and their website.

#10 – IOTA (MIOTA)

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IOTA has seen many of the issues Bitcoin and Ethereum have with the POW (proof-of-work) and POI (proof-of-importance) models and looks to improve them with their revolutionary transaction validation network simply called “tangle”.
When issuing a transaction in IOTA, you validate 2 previous transactions. This means you no longer outsource validation to miners which requires wasteful amounts of computing power and usually a large stake of coins. These required resources are, in effect, centralizing the currencies which many believe were created to be decentralized in the first place.
With IOTA, the more active a ledger is, the more validation there is. In other words, the more people who use it, the faster it gets. You don’t have to subsidize miners, so there are no fees on transactions. That’s right: zero.
The IOTA team has been actively developing blockchain technology since 2011, and created the IOTA foundation and company in 2016. Since its emergence, the team has been continuously growing, attracting exceptional talent from around the world.
For more information on IOTA’s team and their revolutionary“tangle” technology, check out “What is IOTA”.

#11 – NEO (NEO)

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A leading platform for smart contracts and sometimes referred to as “China’s Ethereum”. NEO (formally Antshares) hopes to digitize many types of assets which were formerly kept in more traditional means, and therefore make it possible to use them in smart contracts.
To imagine a potential use case of NEO, think digitizing the title to a house into a smart asset, and then setting up that asset to automatically transfer to another person after payment for the house has been received. This would be, in effect, a simple smart contract.
NEO founder Da Hongfei is a leading figure in the cryptocurrency world and has worked on numerous blockchain projects in the past. The development team consists of 6 in-house investors and a large community of third-party developers.
For a complete overview of NEO, including the team, history and competitive analysis, check out “What is NEO”.

#12 – Dash (DASH)

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Dash (which comes from ‘digital cash’) aims to be the most user-friendly and scalable cryptocurrency in the world. It has the ability to send funds instantly confirmed by “double-send-proof” security with the added functionality of erasable transaction history and the ability to send transactions anonymously.
Like Bitcoin, Dash is meant to be used as a digital currency but has some added values such as much faster transaction times and lower fees. For a slightly higher fee, Dash has the added function of “instant send” which allows transactions to be confirmed almost instantly. This is one of the main selling points of Dash because many believe that this feature would allow it to be used in brick and mortar establishments.
The Dash development team consists of over 50 members and is led by former financial services professional Evan Duffield.
For the latest on Dash, see their official website and reddit page. You can also read “What is Dash” to learn more about the project.

#13 – Monero (XMR)

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Monero is a digital currency designed to be used as a completely anonymous payment system.
A common misconception with Bitcoin is that it is completely anonymous. In reality, all payments processed on the Bitcoin network are recorded on a public ledger (blockchain), so Bitcoin is actually only partially anonymous or “pseudonymous”.
This means that you can, in theory, trace back every transaction a coin has been involved with from its creation. Though users aren’t able to inherently link the public key on the blockchain with the private keys used to store the coins themselves, there will always exist a correlation between the two.
Monero has solved this problem by implementing cryptonic hashing of receiving addresses, therefore separating the coin from the address it is going to. This can be hugely valuable for anyone wishing to conceal their purchases.
The Monero development team consists of 7 core developers, only two of which are publicly known. There have been over 200 additional contributors to the project and software updates are implemented every six months or so.
To learn more about Monero including its competitors and challenges, read “What is Monero”. If you’re thinking about investing in Monero, check out our opinion piece “Should You Invest In Monero?“.

#14 – Tether (UDST)

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Tether is a cryptocurrency token issued on the Bitcoin blockchain. Each Tether coin is allegedly backed by one US Dollar. The goal is to facilitate transactions with a rate fixed to the USD.
Amongst other things, Tether looks to fix some of the legal issues which can arise when trading cryptocurrencies and it aims to protect people from market volatility.
Tether has faced controversy regarding their business model, and some consider it a scam. More info can be seen on reddit posts such as this.

#15 – NEM (XEM)

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NEM (New Economy Movement) is the world’s first proof-of-importance (POI) enterprise based on blockchain technology. With a focus on business use cases, the software was built from the ground up with adaptability in mind. NEM’s goal is for companies to use their “smart asset system” to implement customizable blockchains. A smart asset can be almost anything: a cryptocurrency token, a business’s stock or a company’s invoicing and records.
Some potential use cases for NEM’s technology include: voting, crowdfunding, stock ownership, keeping secure records, loyalty rewards point programs, mobile payments and escrow services. A list of NEM’s use cases can be found here.
The development of NEM is monitored by the Singapore-based NEM Foundation.
For more information on what NEM does and what sets NEM apart from its competitors, see “What is NEM”.

#16 – VeChain (VEN)

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As described in VeChain’s development plan, the organization’s purpose is to build “a trustfree and distributed business ecosystem based on the Blockchain technology self-circulated and expanding”.
They plan to do this by creating an efficient trustless business ecosystem to significantly reduce the wasteful information transfer systems of today.
Some of the areas and industries the VeChain platform is focusing on include eliminating counterfeiting in the fashion and luxury industry, food safety tracking systems, digitizing maintenance in the car industry and many other global supply chain processes.
For more information on VeChain, see their reddit and website. Read “What is Vechain” to learn about the project, and our investment opinion piece “5 Reasons to Invest in Vechain“.

#17 – Ethereum Classic (ETC)

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Ethereum Classic came about after a hard fork of Ethereum in 2016. The fork was a result of the infamous DOA hack where around 50 million dollars worth of Ethereum was stolen due to what was considered an oversight in the code.
The blockchain was forked in order to recoup the losses from this attack, but a small portion of the community did not wish to go back and change the original blockchain. Vitalik Buterin, founder of Ethereum, and subsequently the development team chose to go with the hard fork and work on what is now “Ethereum” today.
There is a lot of ongoing controversy with Ethereum Classic which can be better described on this reddit thread. For an in-depth discussion of Ethereum Classic, see”What is Ethereum Classic“.

#18 – Binance Coin (BNB)

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Binance Coin is the coin used to facilitate operations on the Binance platform, a cryptocurrency exchange that is capable of processing 1.4 million orders per second. The name “Binance” is derived from the combination of the terms “binary” and “finance”, referring to the integration of digital technology and finance.
The BNB coin is used to pay exchange fees, withdrawal fees, listing fees, and all other possible transaction expenses on the Binance platform. In order to incentivize new users to do their cryptocurrency trading on Binance, the team is offering discounts when BNB is used to pay fees. The discount will be 50% in the first year, 25% in the second, 12.5% in the third, and 6.25% in the fourth year before the discount ends.
Binance was primarily marketed to Chinese cryptocurrency investors at first, but they also have English, Korean, Japanese, French, Spanish, and Russian versions of the platform.
For a deeper look into Binance, you can read the whitepaper or check out the trading platform here.

#19 – Bytecoin (BCN)

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Bytecoin describes itself as “a private, decentralized cryptocurrency with with open source code that allows everyone to take part in the Bytecoin network development”. It is the first coin to offer untraceable payments, unlinkable transactions and resistance to blockchain analysis.
With Bytecoin, it is possible to send instant transactions anywhere around the world, which are totally untraceable and don’t require additional fees.
Bytecoin’s development is community-driven and a list of all of the different community websites can be found here.
For more information on Bytecoin, see: “What is Bytecoin“.

#20 – QTUM (QTUM)

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QTUM (pronounced Quantum) is an open-source value transfer platform which focuses on mobile decentralized apps or Dapps. QTUM is the world’s first proof-of-stake smart contracts platform.
QTUM is meant to be used as both a value transfer protocol, like Bitcoin, and a smart contract platform, like Ethereum. They have a number of technical innovations which some consider to make it superior to Ethereum, and they are focusing on mobile applications.
The platform itself is very new. It came about in March 2017, after a highly successful crowdfunding campaign raised them nearly 16 million dollars in only 5 days. QTUM has a small but strong development team and an impressive list of investors backing their ideas. QTUM’s development is lead by the Singapore based QTUM Foundation.
For further reading on the background of QTUM and what sets them apart, see “What is QTUM”.

#21 – Zcash (ZEC)

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ZCash is a value transfer protocol forked off of the Bitcoin blockchain. ZCash can be used like Bitcoin, with a few added improvements. With “zero cash technology”, ZCash shields both the amount transferred and the senders, making transactions truly anonymous.
ZCash is one of the new kids on the block in the world of “private transactions”.
An interesting note is that Ethereum is in the process of implementing some of ZCash’s technologies to enable transactions on the Ethereum network to be anonymous as well.
ZCash is being developed by the Zerocoin Electric Coin Company. They’ve had some great successes, most notably JP Morgan’s announcement that they would implement Zcash’s privacy technology to Quarum, a technology JP built on Ethereum.
Interested in investing in ZCash? Here’s the opinion of one of our writers: Should You Invest In ZCash?
ZCash was recently featured on the Radiolab episode The Ceremony.

#22 – OmiseGO (OMG)

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“Unbank the Banked” is the slogan of Omise’s online platform OmiseGo and that’s exactly what Omise has set out to do. Founded in 2013 off of the Ethereum blockchain, Omise aims to revolutionize the financial dynamics in Southeast Asia.
Omise is targeting individuals and businesses of all sizes by improving the current financial system which is slow, outdated, and inaccessible to most “everyday” people in these countries.
With their planned online exchange OmiseGO, Omise seeks to speed up the way money is spent and sent, both domestically and internationally in Southeast Asia and beyond.
They have a lot to celebrate too. OmiseGo has been building partnerships in the region and recently partnered with McDonald’s and Credit Saison.
Omise has established a strong team of over 130 staff members located in different countries. CEO and founder of Omise, Jun Hasegawa, has been involved in multiple startups and worked for Google for over 16 years.
The OmiseGO platform has been endorsed by some of the heavy hitters in the cryptocurrency world such as Vitalik Buterin and Gavin Wood, the co-founders of Ethereum.
For more information on what OmiseGO aims to do, see “What is OmiseGo”.

#23 – ICON (ICX)

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Fresh off a successful ICO, the Korea-based startup ICON is looking to provide a medium to connect all the different blockchains together. This puts ICON in the same field as Ark, which is attempting to accomplish similar goals.
The main concept of ICON is their idea of a “loopchain”. As stated in their whitepaper, a loopchain can be described as a “high-performance blockchain that can provide real-time transaction, which is based on enhanced Smart Contract.” Through ICON, participants will be able to connect to any blockchain without relying on the current centralized exchanges.
ICON has a relatively large team from various backgrounds. They have also secured the help of a few notable advisors such as Jason Best and Don Tapscott.
For more information on ICON and the work they’re doing, see “What is ICON“.

#24 – Lisk (LSK)

📷 Lisk is a decentralized network, like Bitcoin and Litecoin, which enables developers to deploy their own side chains off the main Lisk blockchain. These side chains are fully customizable blockchains which enable you to change the parameters you want to fit your own blockchain application.
This is similar to Ethereum and QTUM in some ways. With Lisk, the main difference is that the customizable blockchains split into their own separate side chains. This saves developers the grueling legwork of designing something from scratch. At the end of the day, side chains are only decentralized databases of blockchain applications.
Lisk is being developed by a small but quickly growing Berlin-based team. They are led by co-founders Max Kordek and Olivier Beddows who are veterans in the cryptocurrency and development world.
For a thorough look into Lisk including more on what Lisk does, its competitors, challenges and teams, see “What is Lisk”. You can also check out our case study of an accountant who invested all his life savings in Lisk: “Accountant Invests All in Lisk”.

#25 – Zilliqa – (ZIL)

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Zilliqa is a blockchain platform which focuses on solving the problem of scaling on public blockchains. With Zilliqa’s network, the number of transactions increases at a linear rate to the number of nodes.
This means that as nodes increase, so will its ability to handle high transaction volume. Zilliqa has already run a successful test on their network, where they were able to achieve 1,200 transactions per second with only 2,400 nodes.
Zilliqa also is the first blockchain to successfully integrate “sharding” into a public blockchain. This concept is extremely useful in improving the rate of scalability, bandwidth and performance in blockchains. Sharding, in effect, splits nodes into “shards” which can then conduct micro-transactions in each blockchain block.
In addition to this, Zilliqa claims to be more energy-efficient to mine. They also plan to implement dapps into their platform in the future.
For more information on Zilliqa, see their website and reddit. Our article “What is Zilliqa” can provide you with an overview of the project.

Source: https://www.investinblockchain.com/top-cryptocurrencies/

submitted by SilverSniper2017 to cryptoinvestingtop [link] [comments]

Cool explanation of the SHA-256 Algorithm and how it's used to mine Bitcoin

Cool explanation of the SHA-256 Algorithm and how it's used to mine Bitcoin submitted by Ditochi to videos [link] [comments]

Help! We need a better way of explaining bitcoin mining to the average Joe.

Can we crowdsource a better explanation of bitcoin mining than the one I keep reading in the MSM? The articles I have read refer to Bitcoin being mined by "computers that solve complex mathematical puzzles." While technically true, it makes Bitcoin seems more like Sci-Fi than revolutionary innovation. We need something for the non-hacker.
What are the best one line explanations you have read or created yourselves?
submitted by twobitidiot to Bitcoin [link] [comments]

An Honest Explanation of Price, Hashrate & Bitcoin Mining Network Dynamics

An Honest Explanation of Price, Hashrate & Bitcoin Mining Network Dynamics submitted by cokechan to cokechan [link] [comments]

Comparison of Bitcoin Cash (BCH) mining pools & explanation of recent fork

Comparison of Bitcoin Cash (BCH) mining pools & explanation of recent fork submitted by Dixnorkel to bitmining [link] [comments]

Is this an accurate and basic explanation of what Bitcoin mining is?

As a simple explanation, mining is essentially the use of computer hardware to voluntarily verify transactions on the Bitcoin network. Computers are tasked with “solving blocks” through the use of a proof-of-work (PoW) algorithm, or more simply, computers guess the answer to a very complex computational equation using a trial-and-error strategy (you can learn more about Bitcoin mining here). The first computer(s) to solve the block are awarded a predetermined amount of Bitcoin for their services to the network. As more miners enter the network, these equations become more difficult, and the mining rewards decrease, in an attempt to curb inflation and keep the block creation rate at a static time interval (about 10 minutes).
submitted by Costoffreedom to CryptoCurrency [link] [comments]

There are many 'types' of decentralization. But there is a most important type of decentralization. The one Satoshi talked about when he described Bitcoin as a decentralized monetary system. This is an Easy to Understand explanation of decentralization and how non mining nodes don't to increase it

Decentralization is one of Bitcoin's main selling points. But what does it actually mean? Skip to the end for the tl;dr
What is centralization As we all know from reading everything Satoshi wrote about his design for Bitcoin from satoshi.nakamotoinstitute.org, Bitcoin was finalized and born in the wake of the 2008 financial crisis. In this event many normal people lost money while banking executives made more and more.
Where does centralization come from These banks, much like the bank you probably use today, are centralized. That is, they alone control everything that happens. There is one database which has everyone's funds, if they decide you are a terrorist or something they can stop you from access your money. They can stop you from making transactions. Even if you have done nothing wrong they can stop payment on your transactions without your consent, lock you out of your funds, and monitor everything you do.
What is decentralization By splitting up the 'power' that a bank has we decentralize it. There is no longer any one single entity that can control txs and funds. This way no one is 'in charge' and no one can give themselves bonuses while other people lose money. This decentralization is a founding point of Bitcoin.
Where does decentralization come from Instead of one company controlling the database of funds like in the centralized model, in Bitcoin's decentralized model there are many people who can all contribute to the database and transaction processing without any one entity having full control. In Bitcoin and other POW based cryptocurrencies this decentralization is achieved by having a number of mining nodes who are not affiliated. As long as no group of miners controls more than 51% of the hashpower, bitcoin remains decentralized.
So only mining nodes contribute to decentralization, then what about non-mining nodes Non-mining nodes, full nodes, relay nodes, or storage nodes are often misunderstood to be part of decentralization. This can be easily cleared up by understanding the above information and then understanding that a non-mining node has no power if the majority of hashpower were to do something they didn't like.
I thought everyone was supposed to run a full node This is another common misunderstanding, in the very beginning Satoshi did intend for everyone to run a node with 4 functions. He is very clear when he explains how this is not the way for the system to function in the future. The plan of bitcoin is that everyone can make trustless peer-to-peer transactions on a decentralized system. Not that everyone would run a home server with the whole blockchain. The business and bitcoin companies that need to have personal and instant validation of their tx can run a full nodes. Random sampling is a tried and trusted method, those unable to host their own relay node would be easily able to verify their transactions with overwhelming mathematically certainty.
So who wants to run a full node then Anyone who wants to can, it's like the Olympics, 'anyone can compete but few feel the need to'. There is no reason the network should be ground to a halt and made useless so people who can't afford to make a transaction would be able to run a full node on a 20 year old computer over a dial up connection. Bitcoin was meant to scale with technology, not become left behind.
What are the 4 functions that all early nodes did When you read the design of Bitcoin which we all invested into, the design on which so much was built, the one at nakamotoinstitute.org, you see Satoshi mention the word 'node' many times. What we today call a full node or non-mining node usually fulfills one of those functions, that of storing the database. Finding other peers for connecting to is done by full nodes and pool operators. Sending and receiving bitcoin, aka a wallet, was also a function every node had. Finally generating coins by putting new transactions into the blockchain was the 4th thing all nodes used to do. Today these 4 actions are largely compartmentalized, as they should be in any good computer science project.
This is Bitcoin, some people are unhappy with the way Bitcoin was designed, well I suppose Bitcoin is simply not for those people and they should maybe find something else to do.
I hope you've all learned something today about how Bitcoin (now bitcoin cash) is decentralized, what is means, and how we got there.
tl;dr Banks control all txs and accounts with one database and are centralized, Bitcoin has many miners who perform this actions to make it decentralized. Non-mining nodes don't contribute to decentralization.
submitted by zcc0nonA to CryptoCurrency [link] [comments]

How Bitcoin mining REALLY works - an in-depth technical explanation of the proof-of-work algorithm that makes Bitcoin the most secure currency in the world

How Bitcoin mining REALLY works - an in-depth technical explanation of the proof-of-work algorithm that makes Bitcoin the most secure currency in the world submitted by SimilarAdvantage to BitcoinAll [link] [comments]

The Economist explains Bitcoin. An old article from 2011, but a VERY good non-technical explanation of how Bitcoin mining works

The Economist explains Bitcoin. An old article from 2011, but a VERY good non-technical explanation of how Bitcoin mining works submitted by alanX to Bitcoin [link] [comments]

A compelling explanation of how the ever-increasing and doubling electrical requirements to mine Bitcoin are an intentional feature of cryptocurrency, and how it won't last. Bitcoin already requires as much electricity per year as some countries.

submitted by hyperviolator to bestof [link] [comments]

I have a stubborn PhD friend. Every time I talk about Bitcoin with him, he ignores all the economical explanation I provided to him and keeps asking "I don't understand mining, what the value of mining and what does it do"?

I tried to explain to him that mining is the key for this network, miners give confirmation to our transactions. This explanation definitely seems not good for him, and I think I am missing something in this explanation as well.
For this reason, he was never convinced to take a serious look at Bitcoin, no matter what I say about the economical value of Bitcoin.(He is in electrical engineering, so this economical thing does not interest him I guess)
So I am here to ask the community to provide a better explanation on the value/purpose of mining for a layman like him.
Please help reddit!
Edit:Thanks so much for the informative input, guys! Greatly greatly appreciated! I probably need to spend a whole day to digest all these information. Thanks again!
submitted by kcbitcoin to Bitcoin [link] [comments]

A detailed explanation of mining Cryptocurrencies - Bitcoins/Ethereum etc., for Newbies/ameteurs.

This is the thread for everyone (non-Tech) guys to know how to mine cryptocurrencies like Bitcoins, Ethereum etc., in a detailed manner. The information about the same is very cluttered over the web at present. I hope this would help everyone to understand and start-off in a clear manner. I would request the community to help out everyone out here reading this post.
submitted by Darisa to etherscan [link] [comments]

New thorough explanation of bitcoin, hashing, mining for newcomers

New thorough explanation of bitcoin, hashing, mining for newcomers submitted by satoshiba to Bitcoin [link] [comments]

What Bitcoins Are and How Mining Works - A Full Explanation Explanation to bitcoin mining What is Bitcoin Mining? (In Plain English) - YouTube A simple explanation of What is Bitcoin? What is Bitcoin Mining? - YouTube

What Is Bitcoin Mining: Explanation for Beginners. July 8, 2018. What Can You Buy with Bitcoin. September 9, 2018. How to Trade Bitcoin. July 8, 2018. Earn Free Bitcoins Online. November 23, 2017. Pay with Bitcoin Online and Save. Previous article Review of Exodus Bitcoin Wallet. Next article Buying Bitcoins with Coincheck. QUICK TAKE. How to Buy BTC. Visit our Quick Guide to Buying Bitcoin ... Bitcoin Mining and Taxes. Bitcoin mining is not a tax-free exercise no matter if you take it as a hobby or as a business. Knowing how taxes play a role in your bottom line is key to realizing all the benefits of giving your expensive hardware to secure a decentralized cryptocurrency network. Miners have to recognize income for each bitcoin ... Bitcoin, on the other hand, with its finite final supply and milestone reduction in mining rewards (halvings), will eventually have a 0% inflation rate. As of writing, the current inflation of the Bitcoin rate is about 3.6%. Bitcoin mining is done by specialized computers. The role of miners is to secure the network and to process every Bitcoin transaction. Miners achieve this by solving a computational problem which allows them to chain together blocks of transactions (hence Bitcoin’s famous “blockchain”).. For this service, miners are rewarded with newly-created Bitcoins and transaction fees. The Simple Explanation EXPAND+ PART OF. However, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin (throughout, we'll use "Bitcoin" when referring to the network or the cryptocurrency as a concept, and "bitcoin" when we're referring to a quantity of individual tokens). Advertisement. The primary draw for ...

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What Bitcoins Are and How Mining Works - A Full Explanation

Bitcoin and cryptocurrency mining explained with the Byzantine Generals Problem. We use it to explain the essence of cryptocurrency mining. https://www.udemy... Start trading Bitcoin and cryptocurrency here: http://bit.ly/2Vptr2X This is a simplified non technical explanation about Bitcoin mining. For more informatio... Bitcoin Mining Risks and the truth behind investing in BitCoin Mining - Duration: 5 ... Lesego Tjatji 1,862 views. 5:44. Blockchain technology explained – simple explanation of Blockchain ... Here is the definitive explanation of what bitcoins are, how they were developed, why they're so great, and how every aspect of cryptocurrencies other than bitcoins operate. It's complicated but ... Start trading Bitcoin and cryptocurrency here: http://bit.ly/2Vptr2X Bitcoin mining is the process of updating the ledger of Bitcoin transactions known as th...

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