Accurately Pinpoint The Crypto Coins And Lock In The Maximum Profit
Accurately determine the encrypted coin and lock the maximum gain
This is called proof of work. In Bitcoin, it is based on the SHA 256 hash algorithm.
You do not need to know more about SHA 256. It is important to understand that it may be the basis for the encryption challenges that miners are competing to solve. Once the solution is found, the miner can build a block and add it to the blockchain. As an incentive, he has the right to add a so-called coinbase deal and give him a certain amount of bitcoin. This is the only way to create effective Bitcoin.
Bitcoin can only be created when the miner solves the encryption problem. Since the difficulty of this puzzle increases the computer power invested by all miners, only a certain amount of encryption can be created for a given period of time. This is part of the consensus that the world itself cannot break through.
If you really think of this, Bitcoin is a decentralized partner network that maintains a consensus on bills and balances, more than what you see in your bank account. These numbers are more important than entries in the database – can the database be changed by people you don’t see and rules you don’t know?
“It is this narrative of human development. We still have other struggles for struggle. I will say that the field of bitcoin is mainly the separation of money and the state.”
Basically, the cryptocurrency is an entry in the distributed consensus database about the symbolic signal.