What is a cryptocurrency?
The criptomonedas are electronic coin operated by P2P networks on the Internet. Ensure anonymity and decentralization (the currency itself is not owned by anyone). Its main features are:
-free: The license with the "protocol" was published Bitcoin allows anyone to make their own cryptocurrency. Today there are many criptomonedas, each with its "value".
-Descentralizada: There is no central transmitter that controls criptomonedas, running on a P2P network. -Bajas Commissions: a small fees are charged per transaction, which goes to the nodes in the P2P network.
-Transactions Snapshots: shipments and receipts of money are made in a few seconds (although the money they send us takes a few minutes to be available to spend).
-Anonimato: Addresses to send and receive coins are somewhat anonymous. They consist of a randomly generated alphanumeric string. You can create as many addresses as desired.
Where does the money?
The first point is the generation of COINS. As there is no central entity that generates the money, this is obtained by mining. Anyone can MINAR. MINAR action is to find new cryptographic blocks (difficult process to explain for me). This process requires high processing power. Each time a new block X is generated, and who have found the previous block wins X amount of coins (time, rewards, etc. depend on the currency itself). Thus, a "competition" where competing MINERS (who Mirian) is performed. How to find a block is somewhat complicated, it is often used to MINING POOLS, which are groups that add processing power to achieve greater HASHRATE. The HASHRATE measures the speed at which it is mined. The higher, the more you win. Although not always the case: here is present LUCK, because what you do is find blocks. But the more hashrate, more likely to find that block. When a POOL get a reward, it is distributed by miners who worked in that block. There are different methods of payment, but are based on the quoted: each user generates a number of SHARES, you are paid if it is found that block its POOL.