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Thus the value of the currency obtained for finding a hash often does not justify the amount of money spent on setting up the machines, the cooling facilities to overcome the enormous amount of heat they produce, and the electricity required to run them. A "share" is awarded to members of the mining pool who present a valid partial proof-of-work. One company is operating data centers for mining operations at Canadian oil and gas field sites, due to low gas prices. Other cryptocurrencies like Nano utilise a block-lattice structure whereby each individual account has its own blockchain.

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Transactions that occur through the use and exchange of these altcoins are independent from formal banking systems, and therefore can make tax evasion simpler for individuals. Since charting taxable income is based upon what a recipient reports to the revenue service, it becomes extremely difficult to account for transactions made using existing cryptocurrencies, a mode of exchange that is complex and difficult to track. Rather than laundering money through an intricate net of financial actors and offshore bank accounts, laundering money through altcoins can be achieved through anonymous transactions.

With computerized bank ledgers, the coordinating role of central banks increased. How do such ledgers work? Financial institutions adjust the positions of their account holders in their internal ledgers, while the central bank validates transactions among financial institutions in a central ledger.


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