In a world of digital currencies, there is no money in its physical form. The money is rather discovered or the computers all around our globe are all running in a competition to mine for coins. The winner is the one which mines the most of coins in terms of legal actions. Now, it is this mining process that has become the object of interest of many who are not too fond of the fact that they are not in control of this digital and untraditional source of wealth.
Because, that is exactly what cryptocurrency is, an abundant source of digital wealth that can be easily transformed into real money. There is a network that people can use to send bitcoins to each other at all times and there has to be someone who would keep a record of all transactions to avoid any complications and confusion. All transactions are kept in a form of a list that is named a block.
Crypto network can use this blocks to find any information necessary whenever it is needed. That is the best thing about this whole innovative technology. There is no way how data can get missing because everything that is happening on that particular network gets recorded and collected. Each user or a miner has a duty to confirm and write their transactions into a general chain or a ledger, which is nothing but a very long list of blocks. Hence the name blockchain.
Every transaction and action is recorded
Any transaction that takes place between the two addresses is recorded here and it can be reused for exploring if it is necessary. Every new user gets the insight of the constantly updated copy of the block. This keeps them informed about everything that has been going on before they joined. Still, someone would ask, since all of this is just digital, how can this be fully trusted.
This is the moment when the miners come into play. With each block creation, comes a certain process. The information in the block gets turned into something else with the addition of a precise mathematical formula. This new form is known as a hash and it is stored at the end of the blockchain.
A hash is what protects the data within each block, making any fraud completely impossible. It is easy to create a hash using the available collection of data but, there is no way to know what the data was. This is the way how any fraud is avoided, keeping the data protected and safe and the miners in business.
With all this in mind, it would be perfectly safe to assume that the miners’ work is legit by all means. In fact, they have made sure that what they are doing is completely legit. Each hash in the block is used to produce the hash of the next one and on and on it goes. Everything seems to be legit.