A major concern now is making sure our files are secure and that no one can change said file and claim that your address has more Cryptocurrencies (Bitcoin, Ethereum, Litecoin, etc.) than you actually do.
This is where “mining” comes into force as a solution.
Basically, we have a network that sends the file to tens of thousands of “rubber stamps” that can sign the authenticity of the transaction, therefore verifying that everything is genuine and validating the transfer. As a result, the sender can spend your Bitcoin, and ultimately you can receive it without worry.
Now this is where human nature comes in, we have to compensate people (or miners) for their time and effort to verify all these transactions (there is also a power cost to factor in) After all, why what not to share among all of us? and this brings us to “Bitcoin miners”.
Did you see my previous comment, “After all, why not share among all of us”, welcome to the 21st century and the world of cryptocurrencies! After all, we are cutting out the middlemen (bankers and ultimately the government). So “miners” are compensated with Bitcoins through the blockchain to make sure all transactions are genuine, therefore no middlemen manipulating the currency between deals, how about that for an amazing deal?
So now you have a decentralized currency (without government manipulation or interference and this is the important thing) watched over by thousands of miners, who certainly receive a small fee, but are verifying the validity and honesty of all these transactions.
That’s money for the 21st century and beyond.
Now, the transactions are covered, but where do I keep my Bitcoins?
This is where the wallet comes in.
Simply put, you have a unique bitcoin code, this code can be used to send bitcoins to you, therefore anyone can see it and it is visible for you to transact in the bitcoin environment.
So where do I keep my bitcoins?
The same place you keep your money (if you use a wallet), only this is a Bitcoin (cryptocurrency) wallet.
All you have to do is set up a unique address where you will store your bitcoins (cryptocurrencies) and go to this address to access the amount of bitcoins you currently have. This online program is accessed with an email and password.
OK, that’s a simple explanation, I need to go into more detail which I’ll cover in the next article.
