Bitcoin Mining and Folding... How does that work?

[The Great Sayain Man]

Hey guys so i wanted to know that hole Coin Mining stuff is. Can somebody explain it to me? The only thing i know about that stuff is that Bitcoin is a virtual currency. So yeah how does this work?

[TheRetiredSlave]

It seems like there's a thread pinned in this section that explains this..

 

https://linustechtips.com/main/topic/10886-introduction-to-bitcoins/

[The Great Sayain Man]

So they basicly they use your pc as an server?

[Imaginaerum]

Here's the stickied F@H forum post.

 

https://linustechtips.com/main/topic/876-foldinghome-install-guide-and-links-linustechtips-team-223518/

 

Another Bitcoin thread (found on the first page of this subforum...)

 

https://linustechtips.com/main/topic/64266-ultimate-bitcoin-guide/

 

You can also find more information on F@H at the official website, readily available through Google.

 

http://folding.stanford.edu/home/

 

Then there's also these two links:

http://bit.ly/YFrqLw

http://bit.ly/GTpv0G

 

But yes... F@H uses your computer's unused resources to fold proteins. Bitcoin mining... mines Bitcoins with your computer's resources.

[RuecanOnRails]

Bitcoin is not something you can learn about in 10 minutes, expect to sit down for several hours with lots of research and reading before you begin to understand what it is, and how it works.

 

I'll give a very basic description.

Bitcoin is a digital world wide currency outside the control of any government. It is finite in amount, limited to 21 million. it's not inflationary, rather it's divisible down 8 decimal points to .00000001. It cannot be forcefully taken, seized, or controlled.

To understand Bitcoin you need to understand the blockchain. It's the public ledger that contains every transaction that has ever occurred in the history of Bitcoin. When a computer is "mining" they are maintaining the blockchain by gather transactions and compiling them into blocks which then get added to the blockchain. Yes your PC does act as a server, rather a node because the peer to peer nature routes the data to create a global mesh net.

Bitcoin differs from most common currencies by the fact that you cannot hold it. Because of this, it gives you the ability to transfer it anywhere in the world, instantly, at anytime, with very low fees. When you send Bitcoin to someone, or a store, what you are doing is publicly announcing that you are sending coins from your address to another, which get relayed by the nodes and placed into the blockchain.

 

I would like to add, that running the wallet software on your computer, or mining does more than "earn" potential value, it adds to an important aspect of Bitcoin, the decentralization of the Network along with additional nodes to speed up and strengthen security. The reason you earn Bitcoins while mining is to add incentive and build the network.

 

The best advice I can give, is to set time aside then start to read a bunch of random articles on Bitcoin, both recent and old. Once you have a basic understanding but you're still confused on a few aspects then come here and post your questions. While we have many great threads on Bitcoin here, I wouldn't limit yourself to reading only those. A good place to start would be with this article http://evoorhees.blogspot.ca/2012/04/bitcoin-libertarian-introduction.html