What kind of math problems are they solving? Is it used for anything? Why are they doing it?
In: 919
Other than verifying blockchain, no it’s not used for anything. It just looks for partial hash collisions, it’s just hard work for the sake of hard work, to prove that you did it. Point is, this hard work would have to be redone to screw with the ledger after the fact. So it basically becomes impossible, nobody can go back and cook the books after the fact, once a deal is done it can’t be undone or modified. Makes it impossible for example to spend the same coin twice.
This entire scheme is needed for no other reason to make away with requirement for a trusted third party, a problem that was supposedly impossible until Satoshi came along and said he has an idea. Well, it evidently works, sort of, there are caveats, cost to bring an obvious one. Also there is no price stability to speak of, though that is by design, the entire point of cryptocurrencies was to get away from government regulation and that includes central banks.
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