Bitcoin Whiteboard Tuesday – What is Bitcoin Mining?

Every few weeks we’re going to send you a cool new video, just like this one, explaining some basic concepts around Bitcoin. This way you can learn about Bitcoin yourself or forward these videos to friends or family members who have questions.

And for today’s topic: Bitcoin Mining. You have probably heard that Bitcoins are “generated” using very powerful computers solving very complicated mathematical equations. You may also have heard that Bitcoin is a network of computers that maintain a “Blockchain”. Today we’re going to talk all about this and more. As usual, I’m going to keep it simple and straightforward.

The Bitcoin Blockchain is the public ledger which is kind of like “the history book of Bitcoin transactions”. Every Bitcoin transaction ever made since Bitcoin came into existence is written down and documented on it.

This history is really important – since it shows exactly how many Bitcoins each “bitcoin account” or address owns. Trusting this ledger is what makes Bitcoin work. Now remember, Bitcoin doesn’t have a central authority that can approve of this history book, which means that anyone can write it.

So how can you have a reliable history book that anyone can write and nobody approves? This could lead

Read more ... source: TheBitcoinNews