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How Does Bitcoin Mining Work?

Bitcoin Mining

I am sure that you would have wondered where exactly Bitcoin comes from. Well, it certainly does not come from paper money, and the government does that manufacture it. Where does it come from? I will tell you all about it in this guide.

The government decides where the money is printed and where the money is distributed to as well. Bitcoin is something that does not have a central government. Bitcoin miners have been known to make use of special software to solve all kinds of math problems, and they are issued a certain number of bitcoins in exchange. This will provide a smart way to issue the currency, and it also creates a good incentive for more people to mine it. Bitcoin miners have been known to help a lot with the Bitcoin network and also by securing it by approving all of the transactions too. Mining has been known to be a very important and also a very integral part of Bitcoin, which will ensure fairness while keeping the Bitcoin network very stable, secure and perfectly safe as well.

Bitcoin Mining

Bitcoin mining has been known to be a process of adding transaction records of the public ledger of past transactions or even the blockchain.

What is Bitcoin mining?

It is a very well known decentralized computational process that has been known to serve two purposes, and those are listed below.

  • It confirms the transactions in a very trustful manner when more than enough computational power or effort is given to the block.
  • It will create and issue new bitcoins in each block.

It will first verify if all of the transactions are valid in the first place. Then it will bundle the transactions in a kind of block. Then the header of the most recent block is selected and then inserted into a new block as a hash. When the solution is found, a new block is added to all of the local blockchain and propagated to the network later on.

What is Bitcoin cloud mining? I am sure you are wondering about this too.

 
Well, cloud mining or cloud hashing is something that enables the users to purchase the mining capacity of hardware in the data centers. Bitcoin cloud mining enables people to earn the Bitcoins without having to manage the hardware, software and the electricity or even the offline issues as well. Then all of the Bitcoin mining is done completely remotely in the cloud. This would enable the owners to not have to deal with any of the hassles that usually come with mining bitcoin, like electricity, some issues when it comes to hosting, heat and even installation troubles.

 

Ripple’s Big Day: Code Is Open Sourced, OpenCoin Change Their Name

It’s true. After months of waiting, the day has finally come. Ripple is open source. It just feels good to say it, doesn’t it? Ripple is open source. 🙂

Throughout the year the Ripple team have endured quite a bit of flimsy protest from the Bitcoin community for having kept their server source code private, but they always said it would be open sourced “soon”. In fact, Ripple Chief Cryptographer David Schwartz even made the following public statement in July:

“I would consider it a major personal failure if the Ripple server is not open sourced by the end of the year.” (source)

Well, congratulations to the entire Ripple dev team. You have saved David’s bacon with months to spare!

While we’ve reached the end of a chapter, this is likely to be just the beginning of the Ripple story. In a move that shows a strong commitment to their product and their vision, OpenCoin Inc. have changed their name to Ripple Labs Inc.

Ripple Federation Progress Report

Hello Fellow Ripplers!

I wanted to take the chance to congratulate all of you who are working seriously on the Ripple project. Your efforts have helped the price of XRP explode to incredible levels!

The Ripple Federation now appears to be two separate things, a community and media website, and an attempt to crowdsource standards and policies for the Ripple eco-system. Hopefully these will coalesce over time.

We just hit 150 members, and thanks to the recent surge of XRP and XBT prices, the assets we’ve collected via donation are worth over $3,000! I would like to thank our treasurer Dave Chapeskie for doing an excellent job managing our assets, and for working on the development of our public asset management policy.

What should be our specific focus moving forward? Please get in touch if you feel you have some answers. [Note: don’t forget, we’re chatting Ripple everyday on freenode IRC #RFO, and the Ripple Federation Skype group (add salwilliam on skype to join this 69 member group)]

I’ve personally been very busy with other (paid) work in the crypto eco-system, so if we’re going to move this thing forward, I will need to rely on some of your energy. RippleFederation.org is looking for a few good volunteers.

To donate to The Ripple Federation non-profit organization, pls send USD, CAD, BTC, or XRP to r3v6QzgkBq9hM75XGThKS1NM9gchcTrBHL. Check out our sponsors page and get in touch if you would like to be added to our list of benefactors, or if you are interested in providing corporate sponsorship.

Ripple Federation Site Groups

Just a quick note to let you know that we’ve enabled Ning’s Group feature on this site. The RFO Group Hub is accessible directly from the navigation bar. Previously certain accounts were tagged/categorized as developers, media, service providers, etc. Those categories and more will now be done via groups. Unlike the account type, you can be in as many groups as you like and we can have regular RFO accounts administer their own groups.

In addition to the above groups, there is (currently) a single experimental category of groups called “Regional”. If you know of other Ripple users in your region that are in Ripple Federation and you’d like a place to announce meetups or anything else, then a new group can be created for your region. Please suggest suitably large regions (e.g. Michigan or Southern UK would probably be better than Detroit or London), there’s no point having a lot of groups with only a single member.

Exactly how RFO will organize and administer these groups is still being worked out