Bitcoin runs on a blockchain, a decentralised and public ledger where every transaction made on the network is permanently registered. By offering processing power towards this, users are rewarded with bitcoin creating a run to assemble ever more sophisticated and powerful equipment to mine new bitcoin.
Although many think that startups like Coinbase, Blockchain, or BitPay are some of the most important companies in the bitcoin mining industry, in fact where the most important bitcoin companies reside.
The miners form the core backbone of bitcoin, ensuring the digital currency’s integrity and decentralization. This decentralization of he bitcoin industry has huge benefits, but also comes with new risks: Right now, if just the top three organizations joined forces they would control 51% of the network — giving them the power to rewrite the blockchain as they see fit. And if this happens, it can ruin bitcoin.
Some individuals have their own mining machines to mine alone while others join open mining pools where they combine their efforts to improve their chances to get newly issued bitcoin. However, larger companies