Learn what mining and ICOs really are in this video.
Transcript Below:
Hi there!
My name is Dani and I’m the founder of the simplest crypto dictionary beginner’s guide.
In this video series, I’m going to introduce the basic concepts surrounding cryptocurrency. We’re going to touch on:
– 13 very important and very common words you need to know
– Then I’m going to bring up 5 common categories of cryptocurrency
– And finally, the 8 crypto resources you need to be using right now
Before I go on, here’s a quick disclaimer: Nothing published by me or Decryptionary constitutes investment advice. Always do your own research before making an investment.
Mining is the computer process of recording and verifying information on the digital record known as the blockchain. Because mining requires computer power, people do this work in return for money. Each computer that fulfills this process can earn a reward in digital money and sometimes brand new, virgin coins.
To keep the blockchain network running smoothly, only one block can be created at a time. There are several different ways to do this:
The most common is known as proof of work and it required computers work hard at solving a math problem. The first computer to solve this problem would discover a new block and could record information on the blockchain. This earned them a reward in brand new digital money plus fees paid for each transaction.
The next mining technique was called proof of stake. With this system, people who represent a large ownership of coins are selected by the software to create new blocks. Competing people are selected on a lottery-system based on chance. With proof of stake, no new coins are created. Instead fees for verifying and recording transactions are collected.
With over 1,500 cryptocurrencies and many more being created each month, new ways of mining are being explored and discovered.