Even after the recent fall in their prices, the totalmarket value of all cryptocurrencies now exceeds $1.5 trillion, a staggering amount for virtual objects that are nothing more than computer code. The block chain, Bitcoin’s public ledger, could change all of this. Bitcoins can be qualified in such a way that they represent real-world assets. Bitcoin entrepreneurs at companies like Colored Coin https://www.investopedia.com/articles/investing/082914/basics-buyin... are already working on ways to use small portions of Bitcoin to denote physical property. A fraction of a Bitcoin would publicly identify who currently owns that property, and could include a record of both past ownership and other history about the property. When purchasing a car, one would be able to verify all accidents and inspections over the block chain and transfer the title on site.

The whole process of mining needs massive quantities of electricity. Back in 1989, David Chaum created the first cryptocurrency called Digicash. Unfortunately, with the absence of innovation in technology in the ’80s, Digicash didn't have the features that Bitcoin possesses and was not accepted by the people. In addition to introducing new BTC into circulation, mining serves the crucial role of confirming and validating new transactions on the Bitcoin blockchain. This is important because there is no central authority such as a bank, court, government, or anything else determining which transactions are valid and which are not. Instead, https://damienoovr340.edublogs.org/2022/05/17/how-to-talk-to-client... the mining process achieves a decentralized consensus through proof of work .