@ -31,15 +31,16 @@ prerequisite to spending bitcoin, putting the control entirely in the
hands of each user.
Bitcoin is a distributed, peer-to-peer system. As such, there is no
"central" server or point of control. Bitcoins, i.e. units of bitcoin,
"central" server or point of control. Units of bitcoin
are created through a process called "mining," which involves competing
to find solutions to a mathematical problem while processing Bitcoin
to find solutions to a mathematical problem that references a list of recent Bitcoin
transactions. Any participant in the Bitcoin network (i.e., anyone using
a device running the full Bitcoin protocol stack) may operate as a
miner, using their computer's processing power to verify and record
transactions. Every 10 minutes, on average, a Bitcoin miner can validate
the transactions of the past 10 minutes and is rewarded with brand new
bitcoin. Essentially, Bitcoin mining decentralizes the currency-issuance
miner, using their computer's processing power to help secure
transactions. Every 10 minutes, on average, a Bitcoin miner can add security to
past transactions and is rewarded with both brand new
bitcoin and the fees paid by recent transactions. Essentially, Bitcoin
mining decentralizes the currency-issuance
and clearing functions of a central bank and replaces the need for any
central bank.