Bitcoin is the first and most widespread among the so-called cryptocurrencies. It is a "value" agreed between the parties based on the "law of supply and demand"
The creation and exchange of this currency takes place according to the peer-to-peer protocol. Anyone can mint it but there is a maximum of 21 million taperable bitcoins.
The use of this currency guarantees anonymity even if each bitcoin has a holder so it can be used only once.
Privacy is guaranteed by the fact that it is the owner who decides whether or not to reveal himself during the transaction.
The first step to take when you decide to buy bitcoin is to open a virtual wallet, also called wallet, after which you need to proceed with the download of the blockchain which is a global database that keeps track of all the bitcoins used and moved. In this way you will proceed to the synchronization of your wallet with the blockchain. It is also important that the user creates an account that will allow you to start operating.
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Swag guides you through the production of virtual currency
- Generally in every permissionless blockchain, every "n" minute the block chain is updated, generating a new block in the queue. These new blocks contain user transactions, i.e. money transfers between users in the network.
- A block is linked to the chain through the computational work done by the hardware of the computers of the miners nodes. The computational power has as a unit of value Hash/sec. Mining therefore consists in performing a hash operation in as little time as possible.
- Hash resolution can be considered as an attempt to solve a mathematical problem or an algorithm: the operation consists in taking a set of incoming variable data and returning a given output that corresponds to that precise value for that sequence.
- The output is called hash value and is a unique value. Obviously, this work is done by the CPU/GPU by trial and error (defined as brute force and each value tested is called "nonce") until a computer in the network can return the correct output data faster than the others.
- This is in short the activity of mining that generates cryptocurrents with a variable speed depending on the computing power.