What is Bitcoin Mining ?

What is Bitcoin's mining?

There is a good chance that you listen to the phrase "Mining Bitcoin" and your mind begins to navigate through the western fantasy of the plots, dirt and hit it rich. Apparently, the analogy is not too far.

Bitcoin mining is carried out by a high-power computer that resolves complex computer problems; These problems are very complex so that they can not be resolved by hand and are quite complicated to impose a very strong computer tax.

The results of Bitcoin mining are discussed. First, when the computer solves this complex Mathematics problem in the Bitcoin network, they produce a new Bitcoin (unlike the mining end of the soil). And secondly, when solving calculation calculation problems, Bitcoin minors create a Bitcoin payment network to rely and firmly when verifying the information of the transaction.

When someone sends Bitcoin anywhere, it is called a transaction. Transactions in stores or online are documented by banks, point of sale and physical acceptance systems. The Bitcoin Ring reaches the same as the coagulation of shared transactions in "Blocks" and adding to public records called "Blockchain". Then, the node maintains a note of the block so that it can be verified in the future.

When Bitcoin's minor adds a new transaction block to Blockchain, part of the work of it is to make sure that the transaction is correct. In particular, the Bitcoin mining guarantees that Bitcoin is not doubled, a single digital currency called "double store". With the printing currency, counterfeiting is always a problem. But in general, once you spend $ 20 in the store, the invoice is in the hands of the employee. However, with the digital currency, it is a different story.

Digital information can be reproduced relatively easy, so Bitcoin and other digital currencies, there is a risk that spenders can make their Bitcoin copies and send them to other parts while maintaining the original.

Special consideration

Satisfy Bitcoin Minor.
With 300,000 purchases and sales are produced in a day, the verification of each of these transactions can be a lot of work for minors.2 As compensation for their efforts, minors are granted to Bitcoin each time they add a new block of transactions in Blockchain .

The number of new bitcoins released with each mining block is called "block reward". Block gifts are divided by two 210,000 blocks (or approximately every 4 years). In 2009, it was 50. In 2013, it was 25 years, it was 12.5 years and in May 2020, it was reduced by half of 6.25.

This system will continue to approximately 2140.3 at this time, minors will be evaluated at the cost of processing transactions that will be paid by network users. These rates guarantee that minors always have incentives for the mine and maintenance of the network. The idea is that competition for these costs will require them to remain weak after the end of the gamineros.

Boys reduce the level at which new coins are made and, therefore, decreased supplies available. This can lead to consequences for investors, other gold assets, such as low supply, which can have a great demand and increase the highest prices. In half, the total number of circulation of Bitcoin will reach a limit of $ 21 million, which makes the currency completely limited and potentially more valuable from time to time.

Verification of Bitcoin transactions.

For children under Bitcoin, actually, obtain transaction verification bits, two things must occur. First, they must verify the transaction of a megabyt (MB), which can be theoretically as small as a transaction, but more frequently a few thousand, depending on the amount of data in each store.


Second, to add transaction blocks to Blockchain, minors must solve complex computing calculation problems, also called "work vouchers". What they really do is try to make a hexadecimal number of 64 digits, called "hash", which is less than or like the target hash. Basically, the minor computer spits the hash at different levels: Megaethes per second (MH / S), Gigahash per second (GH / S) or TERAHASH per second (TH / S): Using the unit, given the 64 possible numbers. They reach the solution. In other words, play.

The level of difficulty of the last August 2020 blocks was greater than $ 16 billion. That is, the possibility of a computer produces hash below the goal is 1 trillion of 16 billion. To put it in perspective, it has approximately 44,500 times more likely to win a Powerball jackpot with a unique lottery ticket that chooses the right hash in a test. Fortunately, the mining computer system has had knowledge of many possible hash. However, Bitcoin mining requires a large amount of energy and sophisticated computer operations.

The level of difficulty is adjusted for each block 2016 or every 2 weeks, with the aim of maintaining the constant mining tribe.5, in addition, the more competition the minors of solutions, the more difficult the problem. On the contrary, it is true. If the calculation power is extracted from the network, it has difficulties to adapt to the mines more easily.

Bitcoin mining analogy.

Let's say I told three friends that I thought about numbers between 1 and 100 years old and wrote the number on a piece of paper and sealed in an envelope. My friends do not need to guess the correct number, they should simply be the first person to guess, regardless of the lower number or the same as the number I think. And there is no limit on the number of assumptions they get.

Let's say that I think I think I'm thinking about number 19. If friends guess 21, they lose due to 21> 19. If BINSE FRIENDS Guess 16 and friends celebrate 12, then, theoretically, they come to a decent response, because 16 19 and 12 <19. There is no "extra credit" for your friends B, although B responses are closer to the target response 19.

Now, imagine that I placed a "guesses what number I thought," but I did not ask three friends, and I did not think about the numbers between 1 and 100. I prefer to have made millions of potential minors and I was thinking about the 64-digit hexadecimal number. Now you see that it will be very difficult to guess the correct answer.

Not only the minors of Bitcoin must come with a good hash, but they should also be the first to do it.

Because Bitcoin Mining Devine essentially, reaching the right answer before other miners have almost everything they do with the speed with which their computer can produce haubans. Just a decade ago, Bitcoin mines can be done competitively on normal desktop computers. However, over time, minors realize that graphic cards commonly used for videogames are more efficient and start dominating the game. In 2013, Bitcoin Minors has begun to use computers specially designed for mining. CryptomeCurrence as efficient as possible, called integrated circuits of special applications (ASIC). You can run several hundred dollars to tens of thousands, but its effectiveness in Bitcoin mines is greater.

At present, Bitcoin mines are very competitive, since they can only be done in a cost-effective manner with the most recent. When you use a desk, a GPU or an older ASIC model, the costs of energy consumption effectively exceed the generated income. Even with the latest units you want, a computer is quite rare to compete with what the "pool" mine calls.