[Mauzen]

Quote:

Originally Posted by xkirill Oh, so it's like a whole new currency, new piece of paper, just virtual and as a string. But how do people know if the string is valid ?

Thats not really a thing to explain in a forum post. Ask ****** or something, theres more than enough information about that
Short: After all you end up with something very close to paper money, just digital. Same as for bitcoins, you can check if money is faked by checking if it matches certain requirements (looking at the security prints etc).
You can also trace back all their way back to the creation ("blockchain"), so if someone claims to have "your bitcoin", the blockchain proves that he hasnt as you never sent it to him. (faking the blockchain is pretty much impossible as its a P2P system) "Making them up" is just what mining is, you guess a "bitcoin code" and then check if its valid and noone else got it yet.