Today, there are lots of startups working with digital currency and the number of such companies continues to grow. However, the more important for the bitcoin ecosystem are cryptocurrency miners, organizations or individuals who are the playing the key part in ensuring the integrity of digital currency.
Bitcoin is built on the blockchain technology, a decentralised public ledger that records every transaction realized on the network. The process of verifying transactions and creating blocks of transactions that can be added to the blockchain is called mining. It is used to introduce more bitcoins into the system.
The more computers join the network the more difficult it gets to mine new bitcoins. In fact, the process is getting more challenging as the rate of mining is limited.
The process of mining new bitcoins is decentralized. Although decentralization has its advantages, it poses certain risks as well. If an organization or an individual obtains control of more than half of the network’s mining power, it can corrupt the blockchain.
While some individuals prefer to mine bitcoins alone, others opt to join the group of miners, known as pools, where they can improve results by combining their resources.
According to data provided by the bitcoin analysis firm Blocktrail,