General Cryptocurrency Terms
The classification of technology that Ethereum falls into. Blockchains are distributed ledgers, secured by cryptography. They are essentially public databases that everyone can access and read, but the data can only be updated by the data owners. Instead of the data residing on a single centralized server, the data is copied across thousands and thousands of computers worldwide.
Mining is basically the process involved when confirming a transaction. For the entry to be added to the database, the miner has to solve a sort of mathematical puzzle, usually a very complex one. Anyone can be a miner as it is open source but does require a lot of computer power. The miner who solves the mathematical puzzle first adds a block on entries to the database. These entries cannot be made by anyone at any time or altered, that is the purpose of mining. Once the miner has completed the task, they will receive a fee and also newly created coins too for their work. Everyone will know that they have sealed off the block too, so it’s a moment in the spotlight situation.
Bitcoin is the original cryptocurrency and still the most valuable on the market today. It is the market leader due to its established reputation worldwide, its security and the huge community base powering it. Bitcoin holds significant value and has received media attention around the world. Retailers such as Amazon have started to accept Bitcoin by allowing consumers to purchase gift cards with the cryptocurrency.