Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.
Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function.
The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a "subsidy" of newly created coins. This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system.
What is Cryptocurrency?
I first heard about cryptocurrency in 2014, while I was carrying out research on virtual currencies on the internet. This is one of the greatest of all scientific discovery of our time. Crypto- Currency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently outside of any central bank control.
Cryptocurrency also called cryptic currency or crypto asset is a digital form of currency that is being used increasingly globally. This groundbreaking internet technology serves as medium of exchange using cryptography to secure transactions and to control the creation of new units.
Cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies. Bitcoin for example became the first decentralized cryptocurrency in 2009. Since then, several cryptocurrencies have emerged.
Crypto-currencies are known to be "decentralized” in nature; for example, bitcoin which now provide an outlet for personal wealth that is beyond restriction and confiscation by any authority or entity" Cryptocurrencies use decentralized control as opposed to centralized electronic money/centralized banking systems. The decentralized control is related to the use of bitcoin's block chain transaction database in the role of a distributed ledger.
What is a Bitcoin Wallet?
In Bitcoin terminology a wallet is a piece of software that allows you to manage your Bitcoin funds.
Generally, wallets show information about your balance, track payments received/sent, and manage your private-keys, i.e. the secret information that proves your ownership of your bitcoins.
There are different flavors of wallets:
Online wallets are accounts with companies that manage your Bitcoin balance for you, similarly to how banks manage money for you. This type of wallet gives you least control, but most customer support.
Thin wallets store the ownership information on your device, but do not validate the status of the Bitcoin network themselves. They are a good choice as light weight clients for casual users.
Full clients actually synchronize the whole Bitcoin blockchain and therefore the most secure. However, they require quite some time to synchronize with the network.
The most important information of the wallet is stored in the wallet.dat for Bitcoin Core (and similarly so for other wallet types). This file should be backed up regularly to ensure continued ownership of your bitcoins.
How to use Bitcoin Faucet?
Using Bitcoin Faucet is simple. Open those Bitcoin Faucets listed below and enter your bitcoin wallet address(BTC address)or the email id associated with your Block Chain Wallet and press enter. In the next page you will asked to solve Captcha and the antibot sistem, once done hit "Claim now" button. You will now be asked to prove that you are a human, complete the task. That's it.... You claimed the reward.