What is Bitcoin Mining?
The decentralized nature of Bitcoin means that transactions are broadcasted to the peer-to-peer network and once broadcasted, needs to be verified, confirming that the transaction is valid and then having the transaction recorded on the public transaction database, which is known as the Bitcoin blockchain.
- Mining
- Proof of Work Ads by Eonads Ads by Eonads Ads by Eonads Ads by Eonads Ads by Eonads Ads by Eonads Ads by Eonads Ads by Eonads Ads by Eonads Ads by Eonads Ads by Eonads Ads by Eonads Ads by Eonads Ads by Eonads Ads by Eonads Ads by Eonads Ads by Eonads Ads by Eonads Ads by Eonads Ads by Eonads
- Mining Difficulty
- What is Bitcoin Cloud Mining?
- Bitcoin Mining Hardware
- What is Proof-of-Work?
- What is Bitcoin Mining Difficulty?
- How Can You Start Mining Bitcoins?
- How Can You Make Money in Bitcoin Mining?
Miners basically are the people involved in the processing and verifying transactions before then recording the transactions on the Bitcoin blockchain.
Miners will then receive transaction fees in the form of newly created Bitcoins.
So, what’s involved in the actual mining process?
Computers are used to include new transactions onto the Bitcoin exchange and while computers will find it relatively easy to complete the verification process, the process becomes more difficult as computer capability becomes more sophisticated with faster processing speeds.
Attempting to get Bitcoin users from around the world to agree on a single version of the transaction is the challenge and it comes down to what is referred to as “proof of work.”
Bitcoin protocol requires those looking to include additional blocks of transactions on the Bitcoin blockchain to provide proof that the user expanded a scarce resource, in the case of mining being the processing power of the computers used for the verification process.