Bitcoin Mining is the way through which the new bitcoin will come into the system. There are only 21 million bitcoins available as a whole. Until July 2017, the availability of bitcoin for mining is 16,366,275 BTC out of the total bitcoin (21,000,000 BTC). Everyone will have this question in their mind that what will happen if all the 21 million bitcoins were mined and whether the bitcoin value will remain stable throughout that time. These questions are unanswerable because it’s not managed by any third party or centralized systems. Anyone with the internet connected computer and needed hardware can mine a bitcoin. But it’s very difficult to mine the bitcoins. In the mining process, recent transactions will be compiled into blocks and want to solve the difficult puzzle. The miners will receive bitcoin, only if the solved blocks were approved by other group of people.
How is Bitcoin Decentralized?
Bitcoin is the First Decentralized Digital Currency. Later, various cryptocurrencies have been created. The transaction between two people takes place directly without any interference with the third party or central administration. Bitcoin is said to be decentralized because there is no central control or central management. It is not possible to know whether you having bitcoin or not, unless or until you convey it. Also, the bitcoin doesn’t depend on the economy of a country. The bitcoin transaction happens with the usage of a private key and public key to send and receive.
Important Cryptocurrencies other than Bitcoin
Litecoin was launched in the year 2011 which is created by Charlie Lee, an MIT graduate and former Google engineer. The Litecoin is based on open source global payment network and it is not controlled by any central authority.
Ethereum was launched in the year 2015. It is a decentralized software platform which enables Smart Contracts and Distributed Applications to built and run without any interference of third parties, fraud or downtime. In the year 2016, Ethereum was split into two as Ethereum and Ethereum Classic.
Zcash was launched in the year 2016. It is a decentralized and open source cryptocurrency. Zcash offers privacy than the Bitcoin by making all transactions recorded and published in the block chain. But there are few things that remains private like sender information, recipient and amount that provided in the transaction.
Dash has launched in the year 2014 and it is created by Evan Duffield. It is more secretive version of the bitcoin. It was originally knows as Darkcoin and later on March 2015, it was re-branded as Dash. It can be mined by using a CPU or GPU.
Ripple was launched in the year 2012. It is a real-time global settlement network which offers instant and low-cost international payments. Ripple does not need mining and it has a feature that differs from Bitcoin and other altcoins.
Monero was launched in the year 2014. It is an open source cryptocurrency which is a secure, untraceable and private currency. It is completely donation based and community driven. It gains the interest among cryptography community and enthusiasts.