Bitcoin Mining | How is bitcoin mined? | How do you do bitcoin mining?
Bitcoin Mining: Mining is a process in which bitcoin transactions are obtained. With this, the miners perform the statistics of the bitcoin network with their computer equipment. As a reward for their services, they collect newly created bitcoins and secure transaction fees. It is divided in half every four years. On May 12, 2020, the prize will increase to 6.25 bitcoins per block.
Miners (or miners' unions) compete with each other, and their profits are calculated according to computer power.
To describe the mineral, we can use the example of the great Sudoku competition where participants start a new grid as soon as they find a solution, and their complexity is adjusted so that one grid every ten minutes is resolved.
Consider the large Sudoku Grid with several thousand rows and columns. It will be quite easy to make sure the complete grid is full.
However, it will take a lot of work to complete! Grid weight can be adjusted by changing their size, but they can still be easily tested, even if they are very large.
Bitcoins are based on a cryptographic hash that will be solved on the network and have the same features as these sudoku grids: they are very difficult to resolve, but very easy to ensure that the solution is correct, and their complexity can be fixed. .
👉How is bitcoin mined?
Miners make cryptographic hashes (consecutive SHA256s) called block headers. For each new hash, mining software uses a random number called a nonce.Nonce total value with memory allocation of 32 bits. This means that it is limited to only 4 billion opportunities, which, with the current network capacity, is insufficient.
So we put a time stamp on Posh hours that are constantly being produced. Another flexible area where Miners can play.
Personalized Configuration. A hash generated with block number, time stamp, nonce, block data and previous block hash looks like this.
93ef6f358fbb998c60802496863052290d4c63735b7fe5bdaac821de96a53a9a
This hash can be converted to a very long number. (This is a hexadecimal number, which means that the letters AF are 10-15 numbers). To make the mines more difficult, the goal is a daunting task. To build a valid block, a miner must obtain a hash that is less than the target weight.
👉How is bitcoin mined?
For example, if the difficulty is:
1000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
Any number beginning at zero will be considered less than the target. Examples:
0787a6fd6e0782f7f8058fbef45f5c17fe89086ad4e78a1520d06505acb4522f
If we reduce the target:
0100000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
Now we need a number that starts with two zeros:
00db27957bd0ba06a5af9e6c81226d74312a7028cf9a08fa125e49f15cae4979
Because the target is a large number with multiple digits, a simple number is often used to indicate the current target. This number is called the weight of the mines. Mining is measured in pre-built blocks.
That means 70,000 weights means 70,000 times more computer power, as it took Satoshi Nakamoto to make the first block while he was the only miner and using only a computer CPU.
Difficulty varies for each 2016 block. The network fixes the difficulty so that the production time for these 2016 blocks is 14 days, regardless of computer power output. This is why the difficulty increases with the strength of the network.
👉Is Bitcoin Mining Profitable in 2022?
Bitcoin Mining is no longer profitable in 2022. The popularity of bitcoin has created intense competition that makes it inaccessible.Let’s note the existence of companies that use “cloud mining” and sell computer power to their customers who, after reducing administrative costs, acquire shares of mined bitcoin. Be aware, however, that some services are always very frustrating, if not just pure scams. In general, even if done seriously, cloud mining is seldom profitable.
Cryptocurrency mining in India is only recommended for those who have their own green power generator (solar, wind, geothermal, hydraulic) for domestic purposes, without much production in the community.
| Conclusion |
So you should know how bitcoin is mined. I hope you find help with this blog post. If you want to know more about bitcoin, then subscribe to the newsletter for this blog. We will keep sending you bitcoin updates.
Hi , This is Pramod Choudhary from Nagaur Rajasthan India. I an student and I would like to share my positive thinking with everyone that's my passion . Thank you
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