As we already know : A block chain is used to record all transactions ever made with Bitcoin.
This block chain allows anyone’s current balance to be checked.
It also ensures that any transactions that are being made are definitely authorized by the individual sending the bitcoins. Cryptography is used to ensure the block chain cannot be interfered with or become corrupted. In addition, Private Keys (like very long randomly generated passwords) are used on every transaction to act as digital signature for the person spending the bitcoins. This ensures hackers cannot spend other people’s money. The whole system runs on a peer-to-peer network, relying on individuals personal PCs rather than a central data center.
This huge collection of individual’s computers all process the data needed to ensure the fast running of transactions. This processing is called mining.
Highly randomized algorithms are used to ensure that any one person can never possibly predict or know whose transactions they might be processing. This further removes the possibility of abuse. As an incentive to individuals to provide their hardware for performing these services, the mining process also periodically mints new Bitcoins, and rewards them to the owners of mining equipment. Bitcoin has a defined maximum number of coins that will ever be produced. This keeps the scarcity and desirability in check.As at the time of this report there are around 13,000,000 in ciculation this amount will be capped to 24,000,000
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