4 The Mining of Cryptocurrencies
4.1 Introduction
This chapter describes the process behind the issue of cryptocurrencies, which is known as mining
. The mining activity is the method by which new coins of cryptocurrencies are generated and transactions among cryptocurrency’s users are verified. Bitcoin and other cryptocurrencies can be obtained in three primary ways. First, they can be bought on an exchange. Second, cryptocurrencies can be received as payment for goods or services. Finally, they can be virtually mined
. The last option is the topic of this chapter.
The first part of the chapter will analyze the process of mining and its functioning, then the two primary consensus mechanisms are discussed. The ...
Get The Cryptocurrency Phenomenon now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
