What is Blockchain and How does it Works? What is Blockchain in Crypto Currency

Blockchain 

Blockchain is a type of distributed ledger technology that is used to record and verify transactions on multiple computers. It is most commonly associated with the digital currency, Bitcoin, but can also be used for a wide range of other applications. In a blockchain, data is stored in blocks that are linked together in a chain, with each block containing a unique code called a "hash." The decentralized nature of a blockchain means that it is resistant to modification of the data, making it a secure and transparent way to store and transfer information.

Blockchain

Types of Blockchain

Types of Block Chain

There are several types of blockchain, including:

Public blockchain:

A public blockchain is open to anyone and is decentralized, meaning that it is not controlled by any single entity. BTC, ETH , LTC are the example of a public blockchain.

Private blockchain: 

A private blockchain is restricted and can only be accessed by a select group of individuals or organizations. These are typically used by businesses for internal purposes.

Consortium blockchain: 

A consortium blockchain is a hybrid of public and private blockchains, where a group of organizations come together to share a blockchain network.

Hybrid blockchain: 

A hybrid blockchain is a mix of public and private blockchain. It allows for selective transparency and participation.

Sidechain: 

A sidechain is a separate blockchain that is attached to a main blockchain, allowing for the transfer of assets between the two chains.

It's worth noting that these classifications are not strict and some projects may overlap or use different terms to describe their technology.

How Blockchain Works

As we know that it is an uncontrolled digital ledger that records the logs or transactions across all the network of computers. Each block in the chain contains a multiples of transactions and every time when the new transaction occurs on the digital chain, a record of that transaction is added to every participant's ledger. The ledger is secured using cryptography, making it difficult for any one person or group to alter the records. This decentralization also means that no single person or institution has control over the data, making it more resistant to tampering or hacking. Additionally, all transactions on the blockchain are recorded in a public and transparent way, allowing for easy tracking and verification.

What are the famous Cryptocurrencies

There are many different cryptocurrencies available, but some of the most well-known and widely-used include:

Famous Cryptocurrencies

Bitcoin (BTC): 

Bitcoin is the first and most widely-used cryptocurrency and was created in early 2009 based on a decentralized, P2P network.

Bitcoin

Ethereum (ETH): 

Ethereum is also decentralized platform which enables to the creation of smart contracts and decentralized Apps.

Ethereum Coin

Ripple (XRP): 

Ripple is a cryptocurrency that is specifically designed for use in the financial industry. It is used to facilitate cross-border payments and is supported by a number of major banks.

Ripple Coin

Litecoin (LTC): 

Litecoin is a peer-to-peer cryptocurrency that is based on the Bitcoin protocol but with a few key differences, including a faster block generation time.

Litecoin

Bitcoin Cash (BCH):

 Bitcoin Cash is a small coin compared with the Bitcoin and its created in 2017. It has a larger block size limit than Bitcoin, which allows for faster transaction processing.

Bitcoin Cash Coin

Tether (USDT): 

Tether is a stable coin, meaning its value is pegged to the value of a fiat currency, usually the US dollar.

These are some of the most well-known and widely-used cryptocurrencies, but there are many others that are also in use.

Tether Coin

What are the famous exchange for trading in Crypto?

Famous Crypto Mining Exchange

There are many cryptocurrencies exchanges available for trading digital assets, some of the most popular and well-established include:

Binance: Binance is a popular cryptocurrency exchange that offers a wide range of trading pairs and is known for its low trading fees.

Coinbase: Coinbase is a popular exchange based in the United States that offers both a brokerage service (Coinbase.com) and a trading platform (Coinbase Pro).

Kraken: Kraken is a San Francisco-based exchange that offers a wide range of trading pairs and is known for its low trading fees.

Bitfinex: Bitfinex is a Hong Kong-based exchange that offers margin trading and a wide range of trading pairs.

Bittrex: Bittrex is a US-based exchange that offers a wide range of trading pairs and is known for its high security measures.

Huobi: Huobi is a Singapore-based exchange that offers a wide range of trading pairs and is known for its low trading fees.

Gemini: Gemini is a New York-based exchange that is known for its high security measures and regulatory compliance.

It's worth noting that these exchanges are not available in all countries, and regulations and availability can change over time. It's also important to do your own research and choose an exchange that meets your needs and complies with the regulations in your jurisdiction.

What is crypto mining?

Crypto Mining

Crypto mining is the process of using specialized computer hardware to verify transactions on a blockchain network and earn rewards in the form of cryptocurrency. Miners use powerful computer processors to solve complex mathematical problems, which are used to validate transactions on the network. When a miner successfully validates a block of transactions, they are rewarded with a certain amount of cryptocurrency. This process is also called as Proof of Work (PoW) and it is one of the consensus mechanism used in blockchain.

The process of crypto mining is essential for maintaining the integrity and security of a blockchain network, as it ensures that all transactions are valid and that the blockchain remains decentralized. It can be done by anyone who has the necessary hardware and electricity to support the process.

However, the crypto mining is becoming increasingly difficult and costly as the number of miners on the network increases and the difficulty of the mathematical problems increases. This is why it's important to consider the costs of electricity and hardware before deciding to mine cryptocurrency.

Additionally, some cryptocurrencies like Ethereum are planning to shift from PoW to PoS(proof of stake) which is a different consensus mechanism that doesn't require mining.

What are the software's and graphics card required for crypto mining.

Crypto mining software and hardware

The software and hardware required for crypto mining can vary depending on the specific cryptocurrency that you want to mine. Some common software and hardware used in crypto mining include

Mining software: 

This software connects your computer to the blockchain network and allows you to participate in the mining process. Examples of mining software include CG-Miner, BFG-Miner, and Easy-Miner.

1. Graphics Processing Unit (GPU): A GPU is a specialized piece of computer hardware that is used to mine most cryptocurrencies. It is more powerful than a Central Processing Unit (CPU) and is specifically designed to handle the complex mathematical calculations required for mining. Examples of popular GPUs for mining include the NVIDIA GeForce and AMD Radeon.
2. Application-Specific Integrated Circuit (ASIC): An ASIC is a specialized piece of hardware that is designed specifically for mining a particular cryptocurrency. They are more efficient than GPUs, but also more expensive.
3. Power supply: A powerful power supply is required to run the hardware and ensure a stable power supply.
4. Cooling system: Crypto mining generates a lot of heat and requires a proper cooling system to ensure that the hardware does not overheat.
5. Wallet: A digital wallet is where you'll receive and store the mined cryptocurrency.

It's worth noting that the cost and difficulty of mining can vary greatly depending on the specific cryptocurrency and the current state of the network. You should do your own research and consider the costs of electricity and hardware before deciding to mine cryptocurrency.

Additionally, the profitability of mining can also vary depending on the cryptocurrency's current value, mining difficulty and overall market conditions.