Monday, June 12, 2017

What Is Bitcoin Mining And How Is It Done

   Bitcoin Mining is a procedure by which transactions are confirmed and then they are added to a block chain and this is a way wherein new bitcoins are released. Any individual who has a computer and access to the internet  plus the right hardware can do bitcoin mining. You need to compile recently done transactions into blocks and then try to solve difficult computational puzzles. The first one to do so gets the opportunity to place the next block on the block chain and then you can get your rewards, usually in bitcoins. The rewards are the transaction fees that are connected with the transactions that have been assembled in the block and also the newly released bitcoins.

    Blocks are chained together and it is continuous, this is called a  block chain.  This way there is no conflicting transactions. This way there would be no bad transactions. This is an assurance that people will not be able to sign the same bitcoins to two different people. Bitcoin makes sure that blocks are hard to produce and they do this by making only one block chain. This way, miners will have to compute a cryptographic hash that has a certain criteria. This is what they call hashing. Hash is a function that takes an input ( message ) and returns a fixed – sized alphanumeric string. The string is known as the hash value or message digest. The only way to find a cryptographic hash that is suffice so that the miners can count and  try computing a cluster of them until you find one that works. This is the way wherein miners are rewarded some bitcoins and it has a preset schedule. It becomes hard because the hash are adjusted often and this is based on how frequently blocks do appear. When there is more competition , there is more work that has to be done in order to find a block. You need an up to date GPU ( Graphics Processing Unit ). You need this in order to competitive. There are millions of hashes per second and a newer GPU can be very helpful in finding hashes. Without having a specialized hardware the job would be difficult and the miner would have to spend a lot. All miners must be able to validate all of their or else they won’t receive their rewards. The job of finding blocks is so intensive  and it is only through hashing that the network is secured.

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