Smart technologyThe blockchain-technology created by Bitcoin is a holistic, self-regulatory system, which functions as money, a means of payment and a bank, all at the same time. Blockchain is a scientific method, with the purpose of ensuring the owner’s privacy by coding and decoding information.
Mining digital currency, that means cryptocurrency, is in principle, solving a continuously more complicated cryptographic task by the computer. When the task is solved, a currency unit is made. As time moves on, the tasks get increasingly more difficult and thus the minable currency units also get more expensive. The notion of mining is derived from the process’s similarity to actual mining – the longer mining for example gold has been done in one location, the more difficult it is to find new deposits and bring the minerals to ground.
In order to ensure the privacy of the currency’s owners, Bitcoin decentralised the mining. This means that bitcoins are mined by different computer farms, by companies and citizens all over the world and nobody has an overview of how many bitcoins somebody has. Total privacy is good for those, who have a reason to hide their identity during certain financial transactions.
In the summer of 2016, OneCoin, which started in the beginning of 2015, will take over Bitcoin by the volume of issued coins. Under the watchful eyes of audit firms, OneCoin’s servers in Hong Kong and Europe mine 1.44 million onecoins a day.