Currency mining is a new trend in financial transactions which involves only two parties, the receiver and the giver. Crypto currency or digital currency aims at providing service at lower transaction costs and flexibility of transacting at any time. There are many crypto currencies like Etherium, Lash and Bit coin. Among these, Bit coin is the most famous ongoing digital currencies. Genesis mining is one of the famous cloud websites which offers Bit coin mining at relatively economic rate.
How exactly does Bit coin mining work? Let us understand it with a simple example. A gives 10 BTC to B. This transaction is digitally signed with a private key and cannot be forged. The miners work the transaction with various mathematical clues and post it in a public ledger and make sure the transaction is complete. A cannot cheat B because the public will get o see it.
There is much more than number crunching to Bit coin mining. If you understand how it works and what happens to our coins after transaction is done, it will be easy and secure for you.
In the above example of A and B, A decides to pay some money, rather 10 BTC to B. He checks his balance coins and pays B. But wonders what would happen to all his balance since it is all visible publicly. Once a transaction is performed, a declaration has to be signed digitally by the giver. He wonders what if it gets forged? Now, the most important thing to understand here is that Bit coins cannot be forged because they are protected by Digital signature which is an implementation of concrete mathematics and strong cryptography. These do not allow anyone other than the owner to produce a valid signature.
Once you decide on becoming a Bit coin member, you will be assigned a Bit coin address just like our email id and password. Once registered, you can login anywhere without having to be online. You just need to have a program which can generate your Bit coin address in your device. It consists of two main aspects:
Public part: You can give this to anybody who can give send bit coins to you.
Private Key: Each Bit coin address has its own unique key which ONLY the user can operate. This is for utmost safety and security of your account.
All the transactions are made by miners who in turn get rewarded by cloud mining websites with great deal of revenues.