The Block Chain, Mining and You. Why mine?

In 2009, a programmer (or a group of programmers ) under the name Satoshi Nakamoto invented the blockchain, which was published in a research paper called “Bitcoin : A Peer to Peer Electronic Cash System”. This was revolutionary because it solved the problem of getting a bunch of people who don't trust each other to reach a consensus.

The blockchain requires proof-of-work, which is essentially computer calculations on the network in order to reach a consensus. As a reward for proof-of-work, a small reward in crypto-currency is given to the person/machine with right answer and thus “Mining” was born.

Fast forward to the year 2017, Bitcoin reached highs of USD$4800 and Ethereum reached USD$380. So obviously, cryptocurrencies have value in real dollars. There are active exchange in which cryptocurrency coins are traded like the stock market. The markets are typically volatile even within a short 24 hour period. Thus, trading on exchanges is not for the faint hearted.

Remember that the blockchain needs proof-of-work? And you get small reward for participating? Mining provides a channel in which you can get into the crypto-currency scene but not really taking a big risk on the volatility because the coins you “mine” are going to be a function of electricity cost and the computing power of your mining rig.

In the next series of articles, i will touch on what you need to get started and how do you start mining your first coin. Stay tuned!

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