How does the $BTC Bitcoin network protect itself? The Bitcoin network uses a security system called PoW, or mining, using electronic devices distributed around the world. Most people think mining means adding new coins, but this is a misconception. In short, mining is a decentralized way of verifying data using devices spread around the world. A block is created and then proposed to the network. The network verifies it and adds it to a chain of blocks linked together by hashes (“passwords”). Once the block is successfully added, all the transaction fees from that block go to the devices that helped mine it. As you may have understood, mining does not mean adding coins; it means helping secure and protect the network in exchange for the fees from blocks mined and added to the network. Mining was very easy in the past, but as the network has grown and prospered and the number of transactions has increased, mining has become very difficult. It requires electricity and specific equipment, such as powerful computers and mining machines. So before mining Bitcoin, make sure you have the right equipment and can afford the electricity costs.
In the next post, I’ll explain how the Ethereum network protects itself.
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