In this blog, we curate relevant and remarkable content related to blockchain, cryptocurrency and the digital economy. This interesting piece written by Pranshu Bajpai and Richard Enbody and published on The Conversation brings to fore some important issues that must be dealt with by everyone. Read on.
Right now, your computer might be using its memory and processor power – and your electricity – to generate money for someone else, without you ever knowing. It’s called “cryptojacking,” and it is an offshoot of the rising popularity of cryptocurrencies like bitcoin.
Instead of minting coins or printing paper money, creating new units of cryptocurrencies, which is called “mining,” involves performing complex mathematical calculations. These intentionally difficult calculations securely record transactions among people using the cryptocurrency and provide an objective record of the “order” in which transactions are conducted.
The user who successfully completes each calculation gets a reward in the form of a tiny amount of that cryptocurrency. That helps offset the main costs of mining, which involve buying advanced computer processors and paying for electricity to run them. It is not surprising that enterprising cryptocurrency enthusiasts have found a way to increase their profits, mining currency for themselves by using other people’s processing and electrical power.