CRYPTOCURRENCY :
It is incredibly significant technology. Cryptocurrency used to convert ligible information into an almost uncrackable code, to help track purchase and transfers.
It is just limited entries in a database, no one can change without fulfilling specific conditions.
CRYPTOGRAPHY :
Modern cryptography is heavily based on mathematical theory and computer science practice. The growth of cryptographic technology has raised a number of legal issues in an information age, cryptography’s potential for use as the tool for Espionage and Sedition has led many governments to classify it as a weapon and to limit and to prohibit its use and export. It also plays a major role in digital rights management and copyright infringement of digital media.
BLOCKCHAIN :
Cryptocurrency runs as a blockchain which is a shared ledger or document duplicated several times across a network of computer. The upvoted documents are distributed and made available to all holders of cryptocurrency. The value of cryptocurrency fluctuates based on demand and supply. Buyers and sellers agree on a value, which is fair and is based on the value of cryptocurrency trading elsewhere.
MINING :
Mining includes two functions namely adding transactions to blockchain and also releasing new currency.
The primary purpose of mining is to allow bitcoin nodes to reach a server, it’s the mechanism used to introduce bitcoins into systems.
Cryptocurrency mining is painstaking, expensive and only sporadically rewarding.
Why should you mine ??
By mining, you can earn cryptocurrency without having to put down money for it, that said, you certainly do not have to be the miner to own crypto. You can also buy crypto using fiat currency (USD, EUR, JPY etc), you can trade it to exchange like bitstamp using other cryptos.
An example of latter is Steemit, which is kind of like medium except that users can reward blogger by paying them into proprietary cryptocurrency called Steem. Steem can then be traded elsewhere for bitcoin.
What are miners doing?
Miners are getting paid for their work as auditors. They are doing work of verifying previous bitcoin transactions. This convention is meant to keep bitcoin users honest and was conceived by bitcoin’s founder Satoshi Nakamoto. By verifying transactions, miners are helping to prevent the “double_spending” problem.
In traditional fiat money system, people are sending bitcoin to each other over the bitcoin network all the time, but unless someone keeps a record of all these transactions, no one would be able to keep track of who had paid what. It’s the miner job to confirm these transactions and write them into the general ledger.
Miners are not supposed to needle with transaction data in a block, but they must change the data they are using to create a different hash. If the hash does not fit the required format, the nonce is changed, and the whole thing is hashed again. It can take many attempts, to find a nonce that works, all miners in the network are trying to do it at the same time. That’s how miner earns their bitcoins.
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