Understanding Digital Payment
When buying goods or services, the method we use to complete the transaction is called a payment. In past times, bartering or cash were the only ways to pay. These methods have evolved to include digital means. This, in simple terms, is what we mean by the term digital payment.
Digital Payment in the Age of Bitcoin
The digital age has brought about new ways to make payments. One of these that is gaining popularity is Bitcoin. Bitcoin is a form of digital currency. Unlike traditional currency, Bitcoin does not exist in physical form. It lives only in the digital world.
So, How Does This Relate to Bitcoin Mining?
Bitcoin mining is the process by which new bitcoins are added to the market. But it’s also a critical component of the maintenance and development of the blockchain ledger. Bitcoin mining is performed using high spec computers. These computers solve complex mathematical problems. Each solution confirms and records bitcoin transactions in a public ledger. This ledger is commonly known as a block chain. The digital payment transactions that are confirmed during mining are recorded into these blocks.
The Role of Bitcoin Miners in Digital Payment
Bitcoin miners are rewarded for their work. They receive new bitcoins every time they add a new block to the chain. This is the key link between bitcoin mining and digital payment. Miners effectively facilitate digital transactions by creating new Bitcoins. This ensures smooth and secure digital payments using Bitcoin.
