Home Education Guide blockchain The Basics Of Bitcoin Mining Work

The Basics Of Bitcoin Mining Work

Bitcoin Mining Work is so much work. This is what the people who are doing it say it. Mining is what the miners do and when the word mining comes to our ears we visualize little pieces of gold come out of the earth.

Bitcoin is something non tangible and it is a material that is stored in zeros and ones, so why do we people want to say that we mined some bitcoin?

How the bitcoin mining does work?

As you can get a metal out of the ground by mining it, you can get bitcoin out of a computer hardware by just doing what is called the mining action.

Those bitcoin coins are buried into the binary world and did not came out to the real world.What people do with mining is bringing them to the real world.

As the bitcoin’s blockchain regulates, the whole number of bitcoins that can be exist in the digital world is fixated at 21million of them.

Nobody can go more than this much bitcoin if the system reaches it.

What is bitcoin mining?

Mining is the action of checking and ensuring the correctness of the money transfers that are happening in the system.

Whoever validates a transfer will get the reward of the job that he did and he will receive the reward in the form of crypto coins or in our case bitcoins.

Bitcoin Mining Work
The Basics Of Bitcoin Mining

How Nodes Work For Bitcoin’s Mining Network?

Lets talk about the nodes. Nodes are the systems that are every high end computing systems in which they do all the routing and maybe they do the validation thing

But after all these are the pieces of the main bitcoin network called the mainnet. Even you can run a node yourself but you have to buy a remote high end vps and install the bitcoin official software and then let it run by itself.

The problem with this approach is that your vps will soon be flooded by data. At least 140 giga bytes of data which is a bit high and will require you to upgrade that vps and by all this I mean it takes some money to do that.

Read More: Bitcoin Mining Still Profitable in 2019? What is more profitable mining or buying?

What exactly nodes do for bitcoin mining?

As I said nodes are the basis of the bitcoin network. What they do is that they just move around information about the transactions.

For example if one node knows about a transaction then it sends the data about that transaction to the nodes that he knows about.

Those nodes will do the same and ultimately all the nodes in the network will know about the transaction and this is the beauty behind the blockchain.

How mining works by just relaying data?

Actually it is not that simple. A portion of nodes are doing the mining are called the miners. These are very very powerful computers that they try to solve the problem that leads to mining.

This problem is a math problem which is like finding a needle in the garden. Nodes try to find a string of characters that when hashed will lead to a hash that looks like the same as a base hash. That is the basis of Bitcoin Mining Work.

How do they find these strings?

Nodes will try to guess this string at a constant pace. The piece of software that does the hashing makes it nearly not possible to do the prediction of the output.

So what the miner nodes does is that they try to guess the random number and use the hash function to calculate the resulting thing with hashing the random number with the data that is in the block that they want to verify.

The output hash should have a predefined number of zeros at its start. Nothing can guess which random integer will suit the equation, that happens because even if you use two consecutive numbers the output will be very different. So it is impossible to find the number from the output.

How all the nodes tell each other if they found the desired number?

The first node who gets to find the number will tell publicly to others that he has won the competition. In this way the node that receives the rewards will be known.


Please enter your comment!
Please enter your name here

Must Read

LEGO ready to land in the NFTs? The news that breaks bricks

A New Player in the NFT World - It only took one tweet to get fans of NFT and Lego bricks on...

Bitcoin price: BTC fell back again, trading below $ 36,000 again

Bitcoin (BTC) closes the week with a new low of more than 10%, which pushed its price back below $ 36,000.

Bitcoin Core developers release version 0.21.0 of the software

The developers of Bitcoin Core have just announced the release of version 0.21.0 of the software. Result of...

Shopify employees allegedly behind Ledger’s database hack

In a blog post today, hardware wallet designer Ledger returned to his customer database breach in July 2020 where two employees of...

Bitcoin: New Correction Before Q1 Ends

Alex Mashinsky, CEO of Celsius, assured that the price suffered a decline yesterday in the crypto market. In general comes as...