Bitcoin Mining
What is Bitcoin Mining?
Bitcoin is known as a proof-of-work (PoW) network. PoW networks require “miners” to solve computational puzzles to add blocks to the blockchain. Miners who supply more computational power to the network have a higher chance of processing a block, and successful miners are compensated with Bitcoin tokens.
Transactions on the Bitcoin network are grouped into blocks, and then block data is put through a cryptographic algorithm known as “hashing,” which turns the block data into an encrypted fixed number of characters. Hashes are deterministic, meaning that a data set (block data in this instance) will always return the same hash, ensuring that different parties can validate the accuracy of hashing data. Hashes cannot be reverse-engineered, meaning you cannot replicate the underlying data by starting with a hash. Bitcoin’s hashing function is known as SHA-256.
In order for miners to produce the correct hash, they need to find the correct “nonce.” Nonce is short for a number that can only be used once. Mining requires an extensive guess-and-check process where a miner continually tries additional nonces (which produces new hashes) until they are successful. A miner will start with a nonce of 0, and with each incorrect attempt, add 1. Aft...Reports you may have missed
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