Book Image

Bitcoin Essentials

By : Szmigielski
Book Image

Bitcoin Essentials

By: Szmigielski

Overview of this book

Blockchain is being billed as the technology of the future. Bitcoin is the first application of that technology. Mining is what makes it all possible. Exploring mining from a practical perspective will help you make informed decisions about your mining setup. Understanding what the future may hold for blockchains, and therefore for mining, will help you position yourself to take advantage of the impending changes. This practical guide starts with an introduction to Bitcoin wallets, as well as mining hardware and software. You will move on to learn about different mining techniques using the CPU, GPU, FPGA, and ultimately the ASIC as an example. After this, you will gain an insight into solo mining and pool mining, and see the differences between the two. The book will then walk you through large-scale mining and the challenges faced during such operations. Finally, you will take a look into the future to see a world where blockchain-based applications are commonplace and mining is ubiquitous.
Table of Contents (10 chapters)
9
Index

Summary

In this chapter, we glanced at Bitcoin wallets and mining software. We examined the different flavors that wallets come in, from software wallets to hardware wallets. We looked at the difference between full wallets—ones that keep a full copy of the block chain, and thin client wallets that do not download the entire block chain but instead use a different technique to verify transactions. We also touched upon hosted wallets and wallet security was covered at a basic level. Always keep in mind that securing your wallet is an activity worth the effort.

Next, we looked at mining software. We discussed why such software is needed and what it accomplishes. We examined mining software by looking at one of the most popular: cgminer. We briefly discussed the options available when running cgminer.

This chapter was meant as a refresher—we will delve deeper into these topics in subsequent chapters. We hope that you found this chapter interesting and will stay with us for the rest of the journey.