One of the side-effects of the rise of MLM cryptocurrency opportunities, has been analysis and scrutiny from the wider cryptocurrency community. When it comes to MLM and compensation plans, I like to think I know bitcoin mining with raspberry pi cluster stuff. While I have a working knowledge of how bitcoin works however, the technical side of the cryptocurrency isn’t something I’ve delved into.
For those unfamiliar with what a blockchain is, it’s a ledger on which every transaction within a cryptocurrency is recorded. This includes the generation of coins themselves. Every cryptocurrency has its own blockchain, which is typically publicly accessible. With it, you can observe transactions within a cryptocurrency’s eco-system. Through distributed computing, the blockchain is also used to verify the authenticity of transactions. Then, after a certain number of same level of answers are broadcasted, the difficulty increases, and the solving continues.
The answer to the puzzle is a right kind of hash for the new block, and difficulty is generally the right amount of zeroes in the beginning of the answer. Blocks themselves are represented on the blockchain by their own hashes. Once a block reaches the maximum amount of transaction hashes and is verified by other miners, it is added to the blockchain. The eight zeroes at the start represent the difficulty of this block. This second hash has seventeen zeroes, representing an increased difficulty rating.