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Category Archives for "Crypto Currency News"

May 29

What is Cryptocurrency Mining?

By Admin | Bitcoin News , Crypto Currency News , how to make money with cryptocurrency , make money with bitcoin mining , The Crypto Wealth Formula

What is Cryptocurrency Mining?

Cryptocurrencies are the talked about trading instruments of the current day. Not everyone is aware of what a cryptocurrency is, or how is it traded. Basically cryptocurrencies are digital currencies that are traded digitally with complex procedures sometimes known as transactions. In the list of cryptocurrencies, Bitcoin is the most popularly and commonly known cryptocurrency. These digital virtual currencies are which cannot be seen, touched or felt. But these can be transacted using the latest and upcoming technologies.

There are many in the list of cryptocurrencies that are been traded, but the Bitcoin is the one popular name in the list of cryptocurrencies that has become the buzz of cryptocurrency instruments.

Over the past few years cryptocurrencies have been gaining popularity with the increasing number of people buying and selling and trading in cryptocurrencies. But a major fact to note about these cryptocurrencies is that there is no central authority that has a control over the production or generation of cryptocurrencies. In fact no one knows the actual value of the cryptocurrencies that exist. There are only estimated numbers that are playing around in various researches regarding the actual value of cryptocurrencies. But it is known that the cryptocurrencies will never reach an infinite level as there is a limit that is set for cryptocurrencies. There is no central authority that regulates and controls cryptocurrencies, like for printing currency, there is a central authority that governs the printing and regulates the entire process of new notes, the circulation and so on. But when it comes to cryptocurrencies, there is no such authority that can govern the production of cryptocurrencies.

Instead, these cryptocurrencies are generated through a mechanism called ‘MINING’. Yes cryptocurrency mining is the process by which new cryptocurrencies like Bitcoins come into the picture. So what is this ‘Cryptocurrency mining’? And how does cryptocurrency mining work?

What is cryptocurrency mining?

Well, cryptocurrency mining is a deep rooted concept which first requires knowing the meaning of block chain technology. The block chain technology enables cryptocurrency mining process.

What is Cryptocurrency Mining?

The block chain technology –

Block chain is the latest technology that supports all cryptocurrencies. The block chain technology can be referred to as a decentralized register for every transaction that is carried out in cryptocurrencies. Each and every transaction in cryptocurrencies are assembled in what are known as ‘blocks’ and are then verified to ensure if these are from legitimate cryptocurrency miners. The block chain technology ensures that the input and out expenses of the transaction tally in all aspects. Once, verified, the next set of sequential blocks that carry the cryptocurrency transactions are attached to it. So basically cryptocurrency mining is the process in which different cryptocurrency transactions are verified and added to the block chain digital ledger. The person who authenticates and adds the transaction to the block is known as the cryptocurrency miner or the cryptocoin miner.

Cryptocurrency mining is also popularly known as cryptocoin mining, altcoin mining, or Bitcoin mining.

The deep rooted concept of cryptocurrency mining –

The cryptocurrency mining process involves competing with other crypto-miners (people who transact in cryptocurrencies) to solve complicated mathematical problems with cryptographic hash functions that are associated with a block containing the transaction data. The cryptocurrency mining process involves compiling the recent cryptocurrency transactions and solving a computational puzzle. Cryptocurrency miners use either a GPU (graphics processing unit) miner or an application-specific integrated circuit (ASIC) miner for mining cryptocurrencies.

What is the reward of cryptocurrency miners?

Every type of mining comes with a beneficial reward associated with it, as mining in itself involves deep rooted knowledge and research. Mining is a type of discovery that a man does for which he receives reward in return. So when it comes to cryptocurrency mining, the question arises is that, what is the reward of cryptocurrency miners? The amount of cryptocurrencies released with each mining transaction (a block) is known as ‘black reward’ or mining reward.

What is Cryptocurrency Mining?

The cryptocurrency miner who tries to crack the code is rewarded by being able to authorize the transaction, and in return for the service provided, these crypto-miners earn small amounts of cryptocurrency of their own. The crypto currency miners also earn the transaction fee that is associated with mining the block. This is how new cryptocurrencies are generated. In order to be competitive with other crypto-miners, though, a cryptocurrency miner needs a computer with specialized hardware that allows cryptocurrency mining.

Crypto currency miners –

Basically cryptocurrency miners are working as auditors. They are verifying the previous cryptocurrency transactions, which keep the cryptocurrency transactions legitimate by avoiding the double spending problem. As we all know, cryptocurrencies are digitally operated virtual currencies that are highest prone to security threats. Hence these cryptocurrency miners are actually verifying these transactions in the block chain technology, thereby creating a more secure environment in the cryptocurrencies world. Thus these crypto-miners are rewarded with newer cryptocurrencies when they successfully mine cryptocurrencies. But, not every miner earns rewards in mining cryptocurrency transactions. Thus there is a lot of research involved in cryptocurrency mining that one has to know.

The cryptocurrency mining buzz!

Cryptocurrency mining is a popular way to earn money is cryptocurrencies. But with more and more people getting involved in cryptocurrencies, mining crypto coins has become highly difficult. In addition to the difficulty level, cryptocurrency mining has become expensive too which not everyone can afford. Cryptocurrency mining is painstaking, expensive, yet rewarding. Nonetheless, mining has a magnetic draw for many investors interested in cryptocurrency.

What is Cryptocurrency Mining?

There is a lot of competition in cryptocurrency mining, as there are many miners getting involved. Lots of crypto miners are competing against each other to calculate as many hashes as possible, in the hopes of getting to be the first one to hit the correct one, to be able to form a block and get their cryptocurrency payout (rewards).

May 16

Bitcoin sent to Space!

By Admin | Bitcoin News , Crypto Currency News , How to make money with bitcoin , The Crypto Wealth Formula

Bitcoin sent to Space!

The Bitcoin buzz is not very popular among the common man. There are many groups of society that are yet not aware about what Bitcoin is and its functioning. Bitcoin mining companies are trying and making every possible effort to create awareness about Bitcoin and educate people about the ease of use of cryptocurrencies.

In the world of space travel history, Bitcoin is the first ever cryptocurrency that has been sent to space. Yes you read it right, Bitcoin is the first ever cryptocurrency that has been sent to space.

Bitcoin sent to Space!

This was made possible by Genesis Mining, a major Bitcoin cloud mining company. Genesis Mining conducted the first ever peer-to-peer Bitcoin transaction in space.

So how did Genesis Mining do it?

Genesis mining has always been looking for innovative ways to create the awareness of Bitcoin all over the world by educating people about the benefits and used of Digital currency. The company thought that sending the Bitcoin to the space was the perfect way to get the attention and create awareness about the positives and ease of use of Bitcoins. ‘To the moon’ was the catch phrase that Genesis mining used to promote the strategy of sending Bitcoins into space.

Bitcoin sent to Space!

The Process and outcome –

The Genesis Mining team at England decided to release a weather balloon to space, that would carry a 3D printed Bitcoin and a Bitcoin wallet.  The company decided to send a Bitcoin to the Bitcoin wallet in space once the weather balloon reached 20km in space (which is above the Armstrong limit, where humans cannot survive without a pressure suit). The team at Genesis mining was officially successful in sending one Bitcoin to the Bitcoin wallet in space that reached beyond the Armstrong limit.

The successful reaching of the weather balloon at 20km encouraged the team to send the Bitcoin wallet in the weather balloon further up to 30+kms. The technical team addressed the optimal limit to be up to 34km for the weather balloon in space. The successful try made the weather balloon reach 30+kms, where Genesis mining demonstrated sending the second Bitcoin to the Bitcoin wallet in space. Genesis mining was successful in sending the weather balloon up to a distance of 34kms in space with 2 Bitcoins sent from earth to the Bitcoin wallet in space.

Bitcoin sent to Space!

The ultimate aim of the company behind sending Bitcoins to space was to create awareness about the ease of use of the latest digital currency. The company believes that technology is a vehicle that drives our lives towards the better. Sending Bitcoins to space is yet another step to show that technology can ease financial transaction even in the space.

May 16

15 Lesser known facts about Bitcoins

By Admin | Bitcoin News , Crypto Currency News , make money with bitcoin , The Crypto Wealth Formula

15 Lesser known facts about Bitcoins

Cryptocurrencies have been one of the most interesting things in the current generation. Bitcoin is one of the most commonly known among the different types of cryptocurrencies being traded. Recently, Bitcoin has been reaching astounding price levels, attracting many new investors day after day. Yet there are many people who are unaware about the origin and other interesting facts about Bitcoins.

What is lesser known is the way these Bitcoin trading works. Cryptocurrencies have created a huge wonder among the people who are lured by the buzz created by Bitcoins.

15 Lesser known facts about Bitcoins

There are many things that one does not know about Bitcoins. Below are some of the interesting and lesser known facts about Bitcoins and cryptocurrencies –

  • The very first real-world Bitcoin transaction was done to purchase 2 large papa John’s pizzas. It dates back to the year 2010 when Bitcoin was less than a year old, when Laszlo Hanyecz paid a fellow Bitcoin Talk user 10,000 Bitcoins in purchase 2 large pizzas. The amount of the Bitcoins today is worth 27 million dollars.

  • For any great invention, people look for the name of the founder or developer. But in case of Bitcoin, no one knows who the founder of Bitcoins is or who created these Bitcoins. It is rumored that a man named “Satoshi Nakamoto” is the founder of Bitcoin, but no one knows who he is or where he lives.

  • The supply of Bitcoins remains to be fixed. New Bitcoins can come only as rewards paid to Bitcoin miners. So Bitcoins can only be limited. It is researched that the total number of Bitcoins in circulation will never exceed 21 million at any point of time.

15 Lesser known facts about Bitcoins

  • Bitcoins that are generated as rewards to Bitcoin mining (to Bitcoin miners) and are halved every 4 years until all coins are fully mined.

  • Bitcoin is a decentralized monetary system, i.e. there is no central authority to regulate the issue of this currency.

  • Bitcoins are controlled by its own users and no other entity.

  • Currently so far 80% of the Bitcoins have already been mined.

  • The Federal Bureau of Investigation (FBI) owns 1.5% of the total world’s Bitcoins.

  • There are no refund transactions when it comes to Bitcoins. Once transacted, Bitcoins cannot be reversed.

  • It may be surprising fact to know that there are around 1354 Bitcoin ATMs all over the world, spread across 55 counties by 21 ATM producers and 231 operators.

  • The largest transaction ever made on the Bitcoin network was for 194,993 Bitcoins. The transaction was tagged “Shit Load of Money!”

15 Lesser known facts about Bitcoins

  • Bitcoin transactions consume a lot of power. Any Bitcoin transaction however small, medium or big it is consumes electricity power that can be used on an average to power 3 homes for a single day.

  • The Federal Bureau of Investigation (FBI) is said to have the world’s largest Bitcoin wallet.

  • All Bitcoin transactions are done within 10 minutes of settlement time, faster than other real time day to day financial transactions.

  • Bitcoin transactions or trading in Bitcoins remains to be illegal in some parts of the world like Bangladesh, Bolivia, Ecuador and Kyrgyzstan.

There are many other lesser known facts about Bitcoins. The research and findings continue in the cryptocurrencies which comes up with newer and lesser known facts about Bitcoins and other digital currencies.

May 14

Bitcoin Transaction Private key – Encryption and Decryption process

By Admin | Bitcoin News , Bitcoin Transactions , Crypto Currency News , The Crypto Wealth Formula

Bitcoin Transaction Private key – Encryption and Decryption process

Cryptocurrency is the most vulnerable investment medium which is prone to security issues, theft, malware attack and loss of data. Attackers are just waiting for avenues and opportunities to steal the private keys associated with the Bitcoin wallets. As private keys are the core of a Bitcoin transaction done from a Bitcoin wallet, attackers are behind the private key.

The knowledge of private key alone is enough for a person to access and perform operations from the Bitcoin wallet. Hence if one looses the private key data, all the Bitcoins in the wallet are at risk. Private keys associated with Bitcoin wallets can either be stored on the web, on the hardware or on printed paper in case of paper wallets.

Bitcoin Transaction Private key – Encryption and Decryption process

Private keys become vulnerable from storage media’s in case of cold wallets and communication channels in case of hot wallets. The private key is at the risk of attack even while a Bitcoin transaction is being processed from a Bitcoin wallet. Bitcoin wallet owners need to be extremely cautious while storing and transmitting private keys to and from the Bitcoin wallets.

Taking regular back up of the Bitcoin wallets can help to a certain extent, but there are more secure ways that one needs to adopt in order to prevent misuse of private keys from the Bitcoin wallets.

Encryption and decryption of Private keys –

Cryptography of public and private keys takes place through a mathematical algorithm. A public key is derived from a private key by addressing a set of mathematical operations defined in a set of Elliptic Curve Cryptography (ECC). A public key can be derived from a private key, but a reverse action is not possible in this mechanism as these are based on mathematical trapdoor where a function is easy to perform in one direction but practically impossible in another direction. Hence a public address is derived from a public key and a public key is derived from a private key. The private keys can then be encrypted which will secure the Bitcoin transactions. The user will need to decrypt the private key in order to perform sending or receiving transactions from the Bitcoin wallets.

Bitcoin Transaction Private key – Encryption and Decryption process

A highly reliable solution to secure private keys is encryption. Bitcoin wallets or software wallets offer the mechanism to encrypt the private keys. Encrypted private keys will require being decrypted before use, hence even if there is a loss or theft of private keys, if the user is not able to decrypt the encrypted file for the private key, then the private key remains to be safe and unused. The difficulty of the decryption depends on the level of encryption done on the file. The user needs to adopt high standards to encrypt the private key file in the Bitcoin wallets.

The simplest way to encrypt a wallet file is using a password. Another way to perform encryptions is when the private key is encrypted using the master key which is entirely random. The master key is then again encrypted using a key which is derived from a passphrase using the open SSL technology. This is known as multiple encryptions of the software wallets.

As the public and private key pair is mathematically related, what can be encrypted with a public key can be decrypted only with a private key.

Bitcoin Transaction Private key – Encryption and Decryption process

Encryption can only reduce the risk to a certain level but not eliminate in total. Cryptocurrencies are at the highest degree of vulnerability in spite of a number of mechanisms involved to protect and ensure safe cryptocurrency transactions. There are newer ways that are being detected that shows different ways in which the private keys are stolen or attacked by malware. Trading and investing in cryptocurrencies requires vast amount of knowledge about the technology and the way transactions are taking place. Amateur users who indulge in cryptocurrency trading and investments often end up losing all of their money. Hence one is advised to take precautions and adopt secure means while dealing in cryptocurrencies.

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