Topic: How Bitcoin mining works? (Read 328 times)
Computing power, the code system is Blockchain technology. Bitcoin is a success of Blockchain! I hope Blockchain technology will be the future of the world!
There is a section about mining already in here: https://bitcointalk.org/index.php?board=14.0
You can learn a lot of thing with only reading here.
You can learn a lot of thing with only reading here.
Well mining is a process of solving blocks by contributing required hashpower to secure transaction on ledger and verify it to get rewards for contribution. Anyone having sufficient hashpower can mine BTC or any other altcoins.
Bitcoin is based on SHA256 algorithm with is based on Asic mining especially CPU mining. While mining BTC there is certain amount of tokens distributed to contributors according to their performance.
Bitcoin is based on SHA256 algorithm with is based on Asic mining especially CPU mining. While mining BTC there is certain amount of tokens distributed to contributors according to their performance.
1/ Use computer Bitcoin digging
You need to have a few hundred dollars to be able to dig up Bitcoin.
2 / Bitcoin creation: A long string of letters and numbers.
3 / Find Bitcoin tank by laptop
4 / Find the program, download Bitcoin digging software with laptop
5 / Run Bitcoin with your laptop: The job you have to do is to connect the digging system to a power outlet and turn it on. Make sure you also connect it to the computer (usually via USB) and open the software dug out. Then you enter the dig with the same username and password.
You need to have a few hundred dollars to be able to dig up Bitcoin.
2 / Bitcoin creation: A long string of letters and numbers.
3 / Find Bitcoin tank by laptop
4 / Find the program, download Bitcoin digging software with laptop
5 / Run Bitcoin with your laptop: The job you have to do is to connect the digging system to a power outlet and turn it on. Make sure you also connect it to the computer (usually via USB) and open the software dug out. Then you enter the dig with the same username and password.
Prospective miners use special software to solve math problems and are issued a certain number of bitcoins in exchange. The software complies recent Bitcoin transactions into blocks and proves their validity by calculating a "proof of work," that covers all of the data in those block.
Bitcoin - to put it in plain language, bitcoin - virtual money in the form of a digital code that no one has ever managed to break, bitcoin can be reconsidered in some stores, and it is easy to buy it for saving your savings, or multiplying. In fact, bitcoin can be considered a financial asset.
Every miner tries to solve a mathematical puzzle, which is the best way of verifying a transaction and the miner gets a reward for providing this service and hence they earn from mining.
Mining is done by Bitcoin miners. Miners solve, add and builds new blocks to the blockchain. For every block they solve, they are rewarded new Bitcoin by the network.
Before starting on bitcoin mining, it is important that we discuss bitcoins. Bitcoin is a form of digital currency that was created and is held electronically. Like other types of currency, bitcoins are not printed and no one controls them. Bitcoins are produced by people and they are increasingly been used in today’s world. They run on computers all over the world through software that can solve mathematical problems. It won’t be wrong to say that bitcoin is the first example of crypto currency.
The resources needed to do those calculations, give the value to Bitcoin. The resources are:
Computing power
Electricity to operate the hardware
Network bandwidth
Computing power
Electricity to operate the hardware
Network bandwidth
Bitcoin mining is is the process of operating the Bitcoin blockchain, which is an accounting system (a database) for BTC, a cryptocurrency.
Think about how normal cloud databases work: AWS runs on servers all over the world that are owned and operated by Amazon. When you want to make a change to the database, you verify your credentials (login/password) with AWS, instruct AWS to make the necessary changes, then wait while AWS makes the change.
Think about how normal cloud databases work: AWS runs on servers all over the world that are owned and operated by Amazon. When you want to make a change to the database, you verify your credentials (login/password) with AWS, instruct AWS to make the necessary changes, then wait while AWS makes the change.
What is Bitcoin mining?
Mining cryptocurrency is like mining gold or silver at a mountain. When you start digging into a mountain it's relatively easy but over time you will need more advanced equipment as the process gets dangerous and difficult. Mining cryptocurrency is basically solving mathematical problems and these problems get difficult with time. As the difficulty increases the miner would need fast and reliable technology.
How to start mining?
To start mining you need hardware (ASCI for Bitcoin and GPU for other cryptocurrencies) and electricity. Setting up a mining rig is expensive and requires cheap electricity so instead people join mining pools or mining clouds.
What is a mining cloud?
A mining cloud is website that offers mining services. It’s an alternative for people who would like to mine without worrying about hardware, electricity and maintenance. The most popular mining service is http://genesis-mining.com
Mining cryptocurrency is like mining gold or silver at a mountain. When you start digging into a mountain it's relatively easy but over time you will need more advanced equipment as the process gets dangerous and difficult. Mining cryptocurrency is basically solving mathematical problems and these problems get difficult with time. As the difficulty increases the miner would need fast and reliable technology.
How to start mining?
To start mining you need hardware (ASCI for Bitcoin and GPU for other cryptocurrencies) and electricity. Setting up a mining rig is expensive and requires cheap electricity so instead people join mining pools or mining clouds.
What is a mining cloud?
A mining cloud is website that offers mining services. It’s an alternative for people who would like to mine without worrying about hardware, electricity and maintenance. The most popular mining service is http://genesis-mining.com
Mining, is actually a process of verifying the overall of Bitcoin transaction.
And from that process, miners have also maintained the overall integrity of Bitcoin transaction data and information. The overall of that data, stored in a database called (Blockchain). Miners who have contributed to maintaining the integerity of the transaction's overall data and information are given a Bitcoin as reward, and those criteria has been set as the Bitcoin system protocol.
Because Blockchain is always maintained by its integerity by miners, the validity and security in the Bitcoin system becomes difficult to penetrate. And almost impossible, especially Bitcoin uses peer-to-peer network, and there is decentralized system, and there is no dedicated central server in it.
Mining is a distributed agreement system used to confirm transaction queues by inserting them into chains. Mining arranges chronological sequences in chain-blocks, protects network neutrality, and allows different computers to agree on the state of the system. And from that process, miners have also maintained the overall integrity of Bitcoin transaction data and information. The overall of that data, stored in a database called (Blockchain). Miners who have contributed to maintaining the integerity of the transaction's overall data and information are given a Bitcoin as reward, and those criteria has been set as the Bitcoin system protocol.
Because Blockchain is always maintained by its integerity by miners, the validity and security in the Bitcoin system becomes difficult to penetrate. And almost impossible, especially Bitcoin uses peer-to-peer network, and there is decentralized system, and there is no dedicated central server in it.
If “mining” sounds like a process which extracts value from Bitcoin, nothing could be further from the truth!
Miners are the backbone of the Bitcoin network:
Without miners, the network would collapse and lose all value.
The role of miners is to secure the network and to process every Bitcoin transaction.
Miners achieve this by solving a computational problem which allows them to chain together blocks of transactions (hence Bitcoin’s famous “blockchain”).
For this service, miners are rewarded with newly-created Bitcoins and transaction fees.
Miners are the backbone of the Bitcoin network:
Without miners, the network would collapse and lose all value.
The role of miners is to secure the network and to process every Bitcoin transaction.
Miners achieve this by solving a computational problem which allows them to chain together blocks of transactions (hence Bitcoin’s famous “blockchain”).
For this service, miners are rewarded with newly-created Bitcoins and transaction fees.
Bitcoin are mined in units called "blocks." As of the time of writing, the reward for completing a block is 12.5 Bitcoin. At today's price of about $8000 per Bitcoin, this means you'd earn (12.5 x 8000)=$100,000.
When Bitcoin was first mined in 2009, mining one block would earn you 50 BTC. In 2012, this was halved to 25 BTC. in 2016, this was halved to the current level of 12.5 BTC. In 2020 or so, the reward size will be halved again to 6.25 BTC.
If you want to keep track of precisely when these halvings will occur, you can consult the Bitcoin Clock, which updates this information in real time.
When Bitcoin was first mined in 2009, mining one block would earn you 50 BTC. In 2012, this was halved to 25 BTC. in 2016, this was halved to the current level of 12.5 BTC. In 2020 or so, the reward size will be halved again to 6.25 BTC.
If you want to keep track of precisely when these halvings will occur, you can consult the Bitcoin Clock, which updates this information in real time.
By mining, you can earn cryptocurrency without having to put down money for it. That said, you certainly don't have to be a miner to own crypto. You can also buy crypto using fiat currency (USD, EUR, JPY, etc); you can trade it on an exchange like Bitstamp using other crypto (example: Using Ethereum or NEO to buy Bitcoin); you even can earn it by playing video games or by publishing blogposts on platforms that pay its users in crypto. An example of the latter is Steemit, which is kind of like Medium except that users can reward bloggers by paying them in a proprietary cryptocurrency called Steem. Steem can then be traded elsewhere for Bitcoin.
Well thank you for sharing the experience in the crypto market. I am really looking to make a profit by mining. Your article is really useful and I will apply the ideas you set out. I hope I will get a high profit when applying your ideas. hope you have a nice day.
mining in a nutshell is, processing the transaction that has made.
for example you send me a bitcoin, then the miners will process our transaction using their mining tool.
for example you send me a bitcoin, then the miners will process our transaction using their mining tool.
I'm new to bitcoin and i'm very curious on how Bitcoin mining works?
Well mining is a process of generation of altcoin. There is two type of computing power. 1. CPU and 2. GPU
Base of altcoin formulation starts from its type of work and algorithm used for its generation.
In case of Bitcoin, Bitcoin is purely Proof of Work type based cryptocurrency, which have its own specification for formulation. Bitcoin is based on SHA256 algorithm which supports to encrypt mined data and store it securely within block with help of cryptography and hashing power. Now when block gets solved miner who supports to network to alive along with verify transaction and keep all record on ledger of blockchain, receive rewards for their contribution.
This is about Bitcoin but many other cryptocurrencies are based on various algorithm and various types of work.
Welcome to bitcointalk forum. Before create a new thread you read the old thread its better way.
or you can read here - https://www.coindesk.com/information/how-bitcoin-mining-works/
basically - Every ten minutes or so mining computers collect a few hundred pending bitcoin transactions (a “block”) and turn them into a mathematical puzzle currently there is block reward is 25 Btc . this block size will be half after 842 day approx as per this website http://www.bitcoinblockhalf.com/
till now 16,857,800 Btc already founded out of 21,000,000
current difficulty - 2,874,674,234,416
current total hash rate - 22.30 Exahashes/s
This hash rate comes from your GPU power , from Computer its digital generated bitcoins which can be used worldwide but you need lots of free energy to mine bitcoin and lots of mining hardware.
or you can read here - https://www.coindesk.com/information/how-bitcoin-mining-works/
basically - Every ten minutes or so mining computers collect a few hundred pending bitcoin transactions (a “block”) and turn them into a mathematical puzzle currently there is block reward is 25 Btc . this block size will be half after 842 day approx as per this website http://www.bitcoinblockhalf.com/
till now 16,857,800 Btc already founded out of 21,000,000
current difficulty - 2,874,674,234,416
current total hash rate - 22.30 Exahashes/s
This hash rate comes from your GPU power , from Computer its digital generated bitcoins which can be used worldwide but you need lots of free energy to mine bitcoin and lots of mining hardware.
I'm new to bitcoin and i'm very curious on how Bitcoin mining works?
every block could only be mined using mathematics algorithm, however the complexity is increasing every block that's why a single miner could not profit from mining alone, he/she needs to join in a pool in which then they are going to share the 25BTC per block AFAIK.
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