What is Bitcoin Mining In …
What is Bitcoin mining
In our time, the meaning of the word “mining” has changed a lot compared to what was invested in it a century ago. Then miners (from the English mining – mining) wore helmets and pickaxes and most of the time they were underground, mining resources and precious metals. Bitcoin mining is a completely different process: it is not only associated with the extraction of new resources.
To still understand what Bitcoin mining is, look at it as the process of using computer hardware, electricity and software to create something of value – new bitcoins, confirming transactions and ensuring network security. This is why people refer to Bitcoin as a proof of work cryptocurrency, because the attached work is used as evidence to issue new coins and confirm transactions..
All work on mining new bitcoins is done on computers. Any computer in the world can be used to run a bitcoin mining program; depending on the processing power of the machine, the result may or may not impress you. It is important to understand that thousands of people around the world are involved in this system. Thanks to the joint work of their computing power, new blocks are created in the network..
These blocks contain transactions that are deemed correct based on the consent protocol. Miners are releasing new blocks in exchange for a reward for solving them. Each individual miner gets paid based on the computing power that he provided in the process.
The block contains records of confirmed transactions and is added to the public Bitcoin ledger called the blockchain. Each transaction in the block is considered correct by the network. This is accomplished using bitcoin nodes. If the majority of Bitcoin nodes recognize the transaction as valid, then it is queued to be added to the next mining blocks.
Bitcoin mining is resource intensive, and this is done on purpose. The more time passes, the more computing power is required to search for new blocks. New bitcoins are generated slowly, but at the same rate. Bitcoin blocks maximum will be reached around 2040.
And one final important point: Bitcoin mining provides a hack-resistant agreement between Bitcoin nodes in terms of determining the acceptability of transactions. Thus, bitcoin miners are motivated to maintain security in the system, thus getting the opportunity to introduce new coins into circulation..
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