The purpose of mining

in #bitcoin7 years ago

In information released to shareholders this week, Coinbase revealed that it recorded turnover of $1 billion last year, which works out at an astonishing $2.74 million a day or $2,000 a minute. #Bitcoin
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Incentive mechanism & decentralized security system are different, even if both essential.
"The purpose of mining is not the creation of new #bitcoin. That's the incentive system. Mining is the mechanism by which bitcoin's security is decentralized"

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This post has received gratitude of 0.75 % from @appreciator thanks to: @agnesfyffe.

theyre mining "blocks" to facilitate and encrypt the transaction. miners connect both parties (buyer and seller) and complete the sale, then add it to the "ledger."

while both parties remain completely anonymous, the minors or "oracles" have the knowledge of buying/selling price plus the quantity of the transaction, and therefore have the opportunity to intercept an offer of their liking.

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