process of bitcoin mining

Moderator: kyletorpey

process of bitcoin mining

by chetan » Thu Apr 17, 2014 11:42 am

Does the process of bitcoin mining solve any real-world problems?
 
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Re: process of bitcoin mining

by kyletorpey » Sat May 24, 2014 12:02 am

The main problem solved with Bitcoin mining was long known as the "double-spending" problem. The mining process is basically used to make sure that users of Bitcoin cannot spend the same bitcoins twice. In the traditional banking world, centralized institutions are used to solve the double-spending problem. The main problem with this is payments can be censored by a centralized institution. With Bitcoin, there is no one person who can say whether or not a transaction should be allowed. Censorship resistance is at the core of Bitcoin's value proposition. In other words, the mining process is one huge aspect of what makes the entire Bitcoin technology possible in the first place.
 
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