are selected by high-speed computers, called “miners,” and grouped with other transactions into what are called “blocks.”

Then, using encryption software developed by the U.S. NSA, miners go to work “hashing” the data over and over until it is superencrypted. The result is one-way encryption (hash), where the same input will always yield

the same output, but the output cannot be have already been lost, never to be recovered. unencrypted to get back to the input. Miners create new Bitcoin by verifying After hashing, the new block is recorded on each block and entering into a fierce the “blockchain.” It becomes history that can computing competition with each other. The never be deleted or tampered with. competition requires miners to take the hash Imbedded in the hash of every block is a of the new block and perform an astronomical hash of the block before it, which, as in nature, number of calculations in an attempt to be the creates a kind of DNA which links first to arrive at a pre-defined numeric every block to every other block in the “target.” Nakamoto called these chain. The result is an immutable and calculations “proof of work” because ineradicable history. no computer could win the competition Unlike government-issued “fiat” without doing a massive amount of money and even precious metals, only work. He knew that money that can a fixed maximum number of Bitcoins be created without hard work would will ever be produced. The absolute

Hardy

become corrupted. limit is 21 million. Today, there are only Currently, a winning miner is awarded 6.25 about two million yet to be mined. However, new Bitcoin (currently worth $275,000), plus included in the maximum 21 million are two all transaction fees applicable to the block. A million (currently valued at $88 billion) that

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