Throughout the lives of humankind, money, and thegovernmentis always intertwined. Money is being controlled by the government. Even banks, as a centralized cash network, is under their management. That is why there are chargebacks and transaction fees even in digital cash systems.
Due to virtual innovation, decentralized digital cash network emerged from the traditional norm of cash transactions. With this, people could directly be involved in one-on-one personal negotiations through the use of the web, instead of depending on complicated centralized cash networks.
Purpose Of Cryptocurrencies In A Decentralized Digital Cash Network
In a digital cash network, a server, which carries records of money transactions, is managed by a central authority. This prevents double spending: the ability of a person to spend an amount twice in one transaction. In contrary, instead of a central server, decentralized digital cash network have cryptocurrencies, which helps the system file and access all transactional backgrounds. Source for more about cloud mining litecoin.
Relevance Of The Cloud Mining Network
Sending a cryptocurrency is just like pressing the send button of your chatbox. As a person sends these currencies to someone, a request to transact is given to the networks of miners, which secure the decentralized digital cash networks. These individuals could mine a cryptocurrency in the cloud web, such as cloud mining litecoin, through verifying transactions. Once transactions are verified, it is recorded in a digital ledger.
Logically, everyone could be a miner, since it is a decentralized network, meaning there are no authorities who monitor this. However, in order to prevent someone in abusing the cloud mining network, they have this cryptographic function, particularly an algorithm. After verifying transactions, several miners compete to solve for this algorithm in order to create a block from the transactions one verified. Those blocks correspond to valid cryptocurrencies.
This means that the cloud mining network is not actually guarded by people, but by mathematical problems alone.