What is blockchain and mining?

What is Blockchain?

  • All crypto transactions are stored in a public, decentralised digital ledger called the blockchain.
  • It is the equivalent of a bank’s ledger.
  • It is a growing list of records, called blocks, which are linked and secured using cryptography.
  • It is managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks.

What is Mining?

  • Mining is the act of processing and verifying transactions on the crypto coin network – securing them into the blockchain.
  • Each set of transactions are processed into blocks, secured by the miners, and added to the blockchain.
  • Cryptos are not printed – rather they are discovered (mined) by a worldwide network of specialised computers.
  • Miners are rewarded for being 1st to secure the transaction.
  • The term “mining” is used because like with our mineral resources – there is a limited number of coins out there.