14 Jul '13, 6am

The Bitcoin Arms Race Is On! via @IEEESpectrum

Photo: George Frey/Bloomberg via Getty Images Gold Mined: Bitcoin "miners" are rapidly increasing the computing power of they devote to the cryptocurrency. Bitcoin , the cryptocurrency powered by a decentralized peer-to-peer network of computers, has been hot this season . With the exchange rate bobbing around US $100, those involved in creating new bitcoin s—and upholding the network that makes them valuable—have become locked in an arms race of sorts, seeking new, powerful machines that will enrich them but that could also destabilize the nascent virtual money. Bitcoins exist only as records on a virtual ledger that’s shared over a global network, each node of which must agree to changes in the accounting—payments or receipt of payments. Arriving at this consensus takes massive amounts of computing power. You can use your bitcoins even if you’re not plugged into the netw...

Full article: http://spectrum.ieee.org/computing/networks/the-bitcoin-a...

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