Frequently Asked Questions
What is a BTC address?
Bitcoin address, or BTC address, is a series of alphanumeric characters that represent a possible terminal for the bitcoin payment. These addresses can be generated for free by any user of Bitcoin or by using an exchange or online wallet services. A bitcoin address is a single-use token, meaning people have many different addresses, and a unique address should be used for each transaction. Addresses can also be generated offline using free software tools.
What is Bitcoin?
Bitcoin is a type of blockchain cryptocurrency that uses “peer-to-peer” technology to manage and operate its decentralised network, which has no central authority or banks or government interference. It’s essentially open-sourced, nobody owns or controls Bitcoin. It’s been designed for the public so that everyone can get involved.
What is Crypto Mining?
The complication and complexity for ‘mining’ bitcoins stem from its blockchain. This public ledger is designed to support and keep tracks of every single transaction taking place in its network. Every time a transaction is made, a crypto miner in charge of validating and authenticating the information updates the blockchain with that transaction. The process itself involves the miner solving complex mathematical problems with cryptographic hash functions correlated to a block containing the transaction. In the pool, miners are competing amongst themselves to solve the block. The miner earns a small amount of cryptocurrency every time a transaction is authorised.
