Block chain mining

 A distributed peer-to-peer application, also known as a distributed ledger, or blockchain mining, is an online database that is collaboratively maintained by its users, allowing transactions to be processed without the need for a centralized administrator. Unlike a traditional database, where every computer that accessed it is considered an authorized user, in the case of a distributed ledger, each user is granted his or her own permission to access and make use of the data contained therein. This type of ledger has many potential uses in various industries, such as real estate and finance.

A distributed ledger such as the bitcoin protocol allows users across the globe to agree on the data contained within the ledger, known as the block chain, without the need for a central administrator or a third party. Mining occurs when a group of peers-to-peers add to the collective block of transactions by collaborating together. While miners aren't required to run specific applications or carry out specific tasks, they do have to adhere to certain policies. As is the case with other types of peer-to Peer software, there will likely be some kind of governance system that will attempt to monitor and filter any activity which goes against the policies established.

In order to participate in the peer to peer aspect of the ledger, individuals must have one or more computational power. This computational power is provided by a specially designed hardware, which can be leased, or purchased, and which will then act as the backbone of the operation. One way of securing the ownership of this computational power is through proof-of-stake mining. Through this method, when a specific amount of computational power is acquired, or "proof" of the stake, an individual is able to guarantee that he or she is the rightful owner of this specific piece of hardware, and therefore, be entitled to an exclusive use of that particular piece of hardware.