What does mining a bitcoin really mean?
Bitcoin mining explained,
2017 was the year when curiosity about the Bitcoin hit an all-time high, thanks largely to a dramatic surge in its value. Notwithstanding recent fluctuations in its price, interest remains strong in the original cryptocurrency, which was launched in 2009.
One question everybody has is what is the process of 'mining' that creates new Bitcoins and how does the blockchain technology underpinning the cryptocurrency really work. Here's how...
Making of the coin
Bitcoins are generated by a mathematical formula, or algorithm. It started with 50 coins in Jan 2009, the formula produces batches of new coins every 10 minutes.
These coins can be 'mined' by anyone willing to dedicate computing power.
These coins can be 'mined' by anyone willing to dedicate computing power.
Mining done through two tasks
Miners of Bitcoin use open source software to accomplish two tasks.
First, miners confirm the validity of new bitcoin transactions that are waiting to be recorded on a public ledger.
Second, the miners must decode an encrypted, unique ID, generated by the bitcoin formula, to add the condirmed recors to a public ledger known s the 'blockchain'.
First, miners confirm the validity of new bitcoin transactions that are waiting to be recorded on a public ledger.
Second, the miners must decode an encrypted, unique ID, generated by the bitcoin formula, to add the condirmed recors to a public ledger known s the 'blockchain'.
No comments:
Post a Comment