Minting Money With Megawatts [Point of View]

Abstract

Discusses the key features and applications supported by Bitcoin. Also examines the use of financial mining within the Bitcoin network. A crucial part of this new financial network is a computational process known as mining. Bitcoin refers to the entire Bitcoin network and protocol; when not capitalized, Bitcoin refers to the digital currency used on the Bitcoin network. The currency is also often abbreviated as BTC or XBT. The ledger consists of a chain of timestamped transaction blocks, the blockchain. The integrity of the blockchain is secured by cryptographic hashes of the transaction blocks with each block referencing the hash of the previous block. Miners compete to calculate or mine valid hashes and are rewarded with new Bitcoins and transaction fees. The miners consume hundreds of megawatts of power minting Bitcoins worth billions of dollars.