The coins are created by miners, who operate computer farms that verify other users' transactions by solving complex mathematical puzzles. These miners receive bitcoin in exchange. It's also possible to exchange bitcoin for US dollars and other currencies. It's been touted as a currency of the future, but so far hasn't proven very popular as a way to pay for goods or services.

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Supporters of the new method include Microsoft, the bitcoin exchange Coinbase and a variety of other bitcoin proponents who would like to see the currency used more widely in commerce. Reformers had threatened to stop recognising transactions confirmed by miners who hadn't adopted the upgrade. And a move by users to force a change in the computer code seemed to have worked.

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Mining is a record-keeping service. Miners keep the blockchain consistent, complete, and unalterable by repeatedly verifying and collecting newly broadcast transactions into a new group of transactions called a block. Each block contains a cryptographic hash of the previous block, using the SHA-256 hashing algorithm, ch. 7 which links it to the previous block, thus giving the blockchain its name.
Bitcoin is a worldwide cryptocurrency and digital payment system invented by an unknown programmer, or a group of programmers, under the name Satoshi Nakamoto. It was released as open-source software in 2009. The system is peer-to-peer, and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain. Since the system works without a central repository or single administrator, bitcoin is called the first decentralized digital currency. Besides being created as a reward for mining, bitcoin can be exchanged for other currencies, products, and services in legal or black markets.