Bitcoin is a cryptocurrency that provides high returns on investments to the user. This was announced in the year 2008 and was launched in 2009. This cryptocurrency was launched by a person named Satoshi Nakamoto. Cryptocurrency is the universal currency and can be easily used in any part of the world. Initially, there was no value of the bitcoin, but it has increased to lakhs of INR with time.
If we see the functioning of bitcoin, bitcoin works upon the blockchain and bitcoin mining. Most of the users have confusion between bitcoin mining and the blockchain. Here further, we will discuss both crypto mining and the blockchain.
What is a BlockChain?
Blockchain is the part of bitcoin which stores the transactions and provides various other features, including saving the transactions. Transactions in the blockchain are stored in the form of blocks. Once the block of the blockchain fills up, then there is the use of the other block, which is used to store further transactions.
This filling of the blocks may lead to misplacing of the blocks and will become problematic. So that there is no misplacement of the blocks when there is the filling of one block, the next block starts up filling with the last transaction of the last block.
This makes the link between the two blocks, and if there is a need to get track of the transactions, the computer can easily find them with a link. This linking of the two blocks from a link and this link is formed in all the blocks, and it leads to the formation of the blockchain.
What are the benefits of the blockchain?
- Data privacy
- Data security
- Fewer transaction charges
- Less transaction times
What is Crypto Mining?
Crypto mining is the process by which all transactions are processed and verified so that the transaction of the user takes place. There are many people who are self-employed by doing the job as a crypto miner. They are the ones who have good computational skills along with good computational power.
They work for bitcoin; they get the transactions in the form of mathematical problems. Then, they solve the mathematical problems; after solving the mathematical problems, the transactions get verified, and the money gets transferred to the other account.
Mining reward: The software bitcoinprofit used by crypto miners solves the problem on getting money in the form of bitcoins, which act as a reward. They get the reward after solving the problems. Earlier, the bitcoin mining reward was 50 BTC when it was just started. But with time, it gets reduced to halved after every four years, and now the mining reward is about 3.125 BTC.
Mining Pool: sometimes, the mining problem received by the miner is complicated, so it automatically gets distributed among the users. Once the problem gets solved, then the bitcoin reward earned gets distributed among all the miners who were involved in the transactions.
The difference in the Bitcoin BlockChain and Bitcoin Mining
Earlier, we discussed blockchain and bitcoin mining. If we talk about the difference between the two, there is a vast difference, but still, these are linked to each other. In bitcoin mining, there is the solving of the bitcoin transactions, and the user gets rewarded by the bitcoins as the reward. But if we talk about the blockchain, it provides blocks from the storage of the data.
All the data which is stored by bitcoin mining gets stored in the blockchain. All the transactions which get verified are stored in the blockchains. So both are very important for bitcoin; as being a layman, we can say that bitcoin mining and blockchain are the backbones of the cryptocurrency.
Crypto is a platform that is very attractive for users to earn as much money as they can earn. All the factors that blockchain provides have made bitcoin create its popularity and have earned huge prices per bitcoin.
Both blockchains and bitcoin mining have their own importance as the bitcoin blockchain makes the bitcoin special by providing various different factors so that people would invest in the bitcoins. In the case of crypto mining, these are important because this is used as an opportunity by many people to go self-employed.