What is Blockchain and Mining?
Blockchain is a distributed ledger of records without a centralized system on which the older parts of the record cannot be altered. It is recorded on blocks, which are linked using cryptography. It is spread across the network among all peers in the network, and each peer holds a copy of the complete ledger.
Blockchain was introduced in 2009 with Bitcoin, after the big world recession, as a way of taking the control back of our hard earned money, from governments, banks, and other centralized organizations. Our fiat system is flawed, and has depreciated on an enormous scale for decades.
Mining is the process that Bitcoin and several other cryptocurrencies use to generate new coins and verify new transactions. It involves vast, decentralized networks of computers around the world that verify and secure blockchains – the virtual ledgers that document cryptocurrency transactions. In return for contributing their processing power, computers on the network are rewarded with new coins. It’s a virtuous circle: the miners maintain and secure the blockchain, the blockchain awards the coins, the coins provide an incentive for the miners to maintain the blockchain.