Introduction to Cryptocurrency Mining
In the context of option trading with cryptocurrencies, one term you may come across quite often is 'Mining'. But what is mining? Think of it as the backbone that keeps cryptocurrencies like Bitcoin up and running. It's more than just a key process; it's what entrusts security and stability in every crypto transaction.
What is Mining?
Simply put, mining is a process that involves validating transactions and adding them to a blockchain. What's interesting about this is that the term is borrowed from the gold mining analogy. Just like digging for gold, cryptocurrency mining needs effort, time, and a whole lot of computer processing power.
How Mining Works
Mining is a combination of two key tasks. The first task is to validate transactions. Validation ensures that the transaction possesses all the correct attributes for it to be added to the blockchain. For instance; it checks whether the sender has enough balance to complete the transaction. The second task is adding the verified transactions to the blockchain. This requires solving complex mathematical problems.
