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# What is Cryptocurrency and what is Mining Cryptocurrency ?

#### srijay_deathwish

##### Active Member
What is Cryptocurrency and what is Mining Cryptocurrency ? Why are GPU used to mine ? Can someone explain it in simple terms ?

What is Cryptocurrency and what is Mining Cryptocurrency ? Why are GPU used to mine ? Can someone explain it in simple terms ?
Crypto currency is a digital currency whose value is decided by the popularity of that type of currency. Most popular is Bitcoin.

This is how a Bitcoin transaction occurs.
Frst we need to initiate a transaction, this is done by using a Bitcoin wallet or the I'd used in Bitcoin. When the transaction is initiated we need to verify some things like

1) Does the porson owe the id and how much is the balance.
2) Is this transaction valid.

For this, a large mathematical calculation is given to all miners or mining pool, 1st miner or pool to be successful in solving the problem will be given the lotry of verifying this transaction.

When this traction is verified, Bitcoin transfer takes place and some part of Bitcoin is given to miner as a reward.

Miner has very huge importance in Bitcoin mining, each miner has to keep the record of all the traction ever taken place in Bitcoin history and this mathematical calculation given to a miner is very complex and the complexity depends on the overall strength of all miners. This is to keep this transaction genuine and keep this lotry system working.

People started mining using CPU but after sometime people developed software which could use GPU. These complex calculations are not dependent on each other, this lead to the conclusion that we could use independent cores to mine and this is what we have in abundance with GPU.

So simplified....

1) Crypto currency is the real digital representation of normal currency. And its value can increase or decrease.
2)Calculation given to stress test the miner( a pool of hardware or a single person with a single or more hardware) is not dependant on each other for eg 2+4+9+5=20
We can do it with a single core and we will do 2+4+9+5 then 2+4+14 then 2+18 then 20
Or we can use 2+4+9+5 then 6+14 then 20
Here core 1 did 2+4 and core 2 did 9+5 then after those are done another core does the sum of output of both cores. As u can logically think this is faster. Thus we use GPU or specific devices which are designed to parrellel task.

If you want to know these calculations are finding prime numbers which make up a number like a system willl be given 143. Computer has to find 11*13=143 11 and 13 is the key. Like this a number like 676788377773737377377 will be given and it will be quite hard to find the number.

References
Recommended-
More..

I hope this clears your doubt..

I'm using my phone to type so there will be typing mistakes.

Modex
Crypto currency is a digital currency whose value is decided by the popularity of that type of currency. Most popular is Bitcoin.

This is how a Bitcoin transaction occurs.
Frst we need to initiate a transaction, this is done by using a Bitcoin wallet or the I'd used in Bitcoin. When the transaction is initiated we need to verify some things like

1) Does the porson owe the id and how much is the balance.
2) Is this transaction valid.

For this, a large mathematical calculation is given to all miners or mining pool, 1st miner or pool to be successful in solving the problem will be given the lotry of verifying this transaction.

When this traction is verified, Bitcoin transfer takes place and some part of Bitcoin is given to miner as a reward.

Miner has very huge importance in Bitcoin mining, each miner has to keep the record of all the traction ever taken place in Bitcoin history and this mathematical calculation given to a miner is very complex and the complexity depends on the overall strength of all miners. This is to keep this transaction genuine and keep this lotry system working.

People started mining using CPU but after sometime people developed software which could use GPU. These complex calculations are not dependent on each other, this lead to the conclusion that we could use independent cores to mine and this is what we have in abundance with GPU.

So simplified....

1) Crypto currency is the real digital representation of normal currency. And its value can increase or decrease.
2)Calculation given to stress test the miner( a pool of hardware or a single person with a single or more hardware) is not dependant on each other for eg 2+4+9+5=20
We can do it with a single core and we will do 2+4+9+5 then 2+4+14 then 2+18 then 20
Or we can use 2+4+9+5 then 6+14 then 20
Here core 1 did 2+4 and core 2 did 9+5 then after those are done another core does the sum of output of both cores. As u can logically think this is faster. Thus we use GPU or specific devices which are designed to parrellel task.

If you want to know these calculations are finding prime numbers which make up a number like a system willl be given 143. Computer has to find 11*13=143 11 and 13 is the key. Like this a number like 676788377773737377377 will be given and it will be quite hard to find the number.

References
Recommended-
More..

I hope this clears your doubt..

I'm using my phone to type so there will be typing mistakes.

That says everything!

• Cryptocurrency:
It is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.​

• Cryptocurrency Mining:
Bitcoin, the most famous cryptocurrency. It’s a digital currency, and new units of currency are generated by “mining.” This is a computationally intensive task, and it requires a lot of processing power. Essentially, the computer is rewarded for solving difficult math problems. This processing power is used to verify transactions, so all that number-crunching is required for the cryptocurrency to work. In short you get rewarded for providing computing power.​

srijay_deathwish
It's a form of digital currency and it is sort of anonymous type and that's why the creators of ransomware use Bitcoins to get ransom!

Crypto currency is a digital currency whose value is decided by the popularity of that type of currency. Most popular is Bitcoin.

This is how a Bitcoin transaction occurs.
Frst we need to initiate a transaction, this is done by using a Bitcoin wallet or the I'd used in Bitcoin. When the transaction is initiated we need to verify some things like

1) Does the porson owe the id and how much is the balance.
2) Is this transaction valid.

For this, a large mathematical calculation is given to all miners or mining pool, 1st miner or pool to be successful in solving the problem will be given the lotry of verifying this transaction.

When this traction is verified, Bitcoin transfer takes place and some part of Bitcoin is given to miner as a reward.

Miner has very huge importance in Bitcoin mining, each miner has to keep the record of all the traction ever taken place in Bitcoin history and this mathematical calculation given to a miner is very complex and the complexity depends on the overall strength of all miners. This is to keep this transaction genuine and keep this lotry system working.

People started mining using CPU but after sometime people developed software which could use GPU. These complex calculations are not dependent on each other, this lead to the conclusion that we could use independent cores to mine and this is what we have in abundance with GPU.

So simplified....

1) Crypto currency is the real digital representation of normal currency. And its value can increase or decrease.
2)Calculation given to stress test the miner( a pool of hardware or a single person with a single or more hardware) is not dependant on each other for eg 2+4+9+5=20
We can do it with a single core and we will do 2+4+9+5 then 2+4+14 then 2+18 then 20
Or we can use 2+4+9+5 then 6+14 then 20
Here core 1 did 2+4 and core 2 did 9+5 then after those are done another core does the sum of output of both cores. As u can logically think this is faster. Thus we use GPU or specific devices which are designed to parrellel task.

If you want to know these calculations are finding prime numbers which make up a number like a system willl be given 143. Computer has to find 11*13=143 11 and 13 is the key. Like this a number like 676788377773737377377 will be given and it will be quite hard to find the number.

References
Recommended-
More..

I hope this clears your doubt..

I'm using my phone to type so there will be typing mistakes.

Thanks man ! That was enough to clear everything i needed to know.

Abhiram Shibu
Cryptocurrency is a type of digital currency that is used as a medium of exchange through a computer network. Whereas, mining cryptocurrency is the process of developing new currencies while simultaneously validating existing transactions. It is used to create new coins as well as validate existing transactions.

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Cryptocurrency is a digital or virtual form of currency that uses cryptography for security. Mining involves validating transactions on the blockchain by solving complex mathematical problems, earning miners new units of the cryptocurrency as a reward for their computational efforts.

Basically, mining cryptocurrency is the process of validating transactions on a blockchain network, which involves solving complex mathematical problems. Miners use GPUs because they're great at handling multiple tasks simultaneously, which is perfect for the complex calculations needed for mining.In simple terms, mining cryptocurrency is like solving puzzles to verify transactions and secure the network. GPUs are used because they're good at solving these puzzles quickly.If you're still looking for more info, I'd suggest signing up for Binance. It's a popular cryptocurrency exchange where you can buy, sell, and trade cryptocurrencies. You can always sign up for Binance and by using 바이낸스 가입 for more info.