What Does It Mean To Mine Crypto Currency?

A. Crypto currency mining is the process of spending your time and computing power to solve complex mathematical puzzles to verify other users transactions and also creating new coins as a reward.

B. It is designed to offer anonymity, decentralization and make it difficult to trace funds. Everyone who uses crypto currency has an equal opportunity of solving these math problems and gaining these rewards so there is no way for governments or banks / big companies; all we need now is a decent amount of time and computers power (to which we can buy). There are various methods that you can use such as cloud mining, building your own rigs etc., but for this article we will focus on one particular type – GPU Mining (which means running the computer hardware underclocked; thus saving lots of money).

C. How does it work? Think about what’s happening inside each Coin: take Bitcoin as an example: The encrypted information is put into blocks: after the miner solves the block, he decides if he needs another solution, or how much he should give back in exchange for this solution pointing at his next block . He broadcasts it unencrypted so everyone else could see his next block/solution ; then he gets all those solutions that point towards his current one into a set called as Proof Of Work which further increases security by having another user check whether those solutions actually lead somewhere where they should be able to find one block solution without any more altering necessary. This way each miner produces blocks every 10 minutes