Topic: Mining and Altcoin (Read 179 times)

Most of the new projects that I've seen are mining on their own and not required to buy their own data centers. The difficulty is what makes them guarantee that early miners of their own coin will get enormous coins from them.

The philosophy is the same as when bitcoin has started.

I don't recommend companies or businesses to set up their own chain or coin without understanding first how the technology works and what they are offering to the community, I have seen one insurance company trying to create his own mining coin or coin in smart contract without concrete plan about their coin and roadmap, this will result to failure.

a miner has to connect to a node which is receiving transactions and verifying them.
then the miner selects from 0 up to as many transactions as fits in the block they are trying to create (usually near 2500 tx) based on their preference.
then the miner creates a hash from all these transactions they included in that block called merkle root hash.
finally the miner constructs a fixed 80 byte header from block version, merkle root hash, previous block header hash, nonce, block target, and block time. this input will be hashed using double SHA256 while changing nonce,... until the miner finds a hash that when converted to an integer in little endian format is smaller than the target.

when the miner succeeds the block is then broadcast to other nodes so that other miners also find out and stop working on the same block and start working on the next.
all those transactions that were included in that block in step 2 are considered "confirmed".
the block reward is also claimed by the miner in a new transaction without any inputs as the first transaction of that block called Coinbase tx.

this is the definition of how all cryptocurrencies using Proof of Work mining algorithm work. that includes bitcoin, litecoin, dogecoin, ethereum,....

it depends on how they create that new coin. there is not just one method of creating a "crypto"currency.

Nodes verify and relay transactions, miners are connected to nodes which is where these transactions are sent to the miners to mine... A node or pool may ready a certain number of transaction blocks ready for the nodes to mine individually (such as switching the order of transactions) in order to mine the coins faster....

It is not in anyone's interest here to promote centralised  banking scum so you're better off taking your jp Morgan question to them....

I'm curious when bitcoin miners solve those complex algoritms does that mean a new block is added to the block chain that confirms the transactions then that leads to a reward of bitcoin for the miner OR do miners both confirm the transactions on a blockchain or ready there AND solve the math algorithms to be rewarded with bitcoin?

How does it work out when a business wants to create its own digital coin? Does this mean they buy a data center and try to mine coins or what? I understand something like ethereum as it is for smart contracts but having problems understanding other altcoins.