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

Decentralized mining is key


Bitcoin's reputation as a decentralized system depends upon keeping the mining fairly decentralized. Although it is highly unlikely that a miner will act maliciously in the event of obtaining the majority of the network hash power. However, it is better for everyone involved that no single miner reaches this threshold. A decentralized mining system gives a lot of participants in the Bitcoin experiment peace of mind. After all, there is some serious money at stake now. Bitcoin's market cap, as of early 2016, is around 7 billion US dollars.