Blockchain: How Miners Pick Transactions in Bitcoin network?
“Cruising the Bitcoin Highway: How Miners Direct Traffic”
Imagine the Bitcoin network as a busy highway, and transactions are like cars trying to get from one place to another. Miners are like traffic police, deciding which cars get to go on the highway and in what order. Here’s how miners pick transactions in the Bitcoin network in layman’s terms:
1. **Gathering Transactions**: First, all the new transactions that people want to send on the Bitcoin network are collected. These transactions are like cars waiting to get on the highway.
2. **Creating a Block**: Miners group these transactions into a “block.” Think of it as a container that can hold a certain number of cars (transactions). In reality, the block has a size limit, so miners can’t fit too many transactions into it.
3. **Picking and Sorting**: Miners then have to decide which transactions to put into their block. They typically choose transactions that come with a little extra something, like a tip, also known as a transaction fee. Just like you might let a car merge onto the highway if the driver offers you a few dollars.
4. **Solving a Puzzle**: Here’s where it gets a bit technical. Miners must solve a complicated math puzzle to add their block to the highway (the Bitcoin blockchain). It’s like a traffic police officer having to complete a puzzle before allowing cars onto the highway. This puzzle-solving process is called “proof-of-work.”
5. **Competition**: Many miners are trying to solve the puzzle at the same time. It’s a race! The miner who solves the puzzle first gets to add their block to the blockchain and, in return, earns a reward in the form of new bitcoins and the transaction fees from the included transactions.
6. **Adding to the Chain**: Once a miner adds their block to the blockchain, it becomes a part of the official highway. All the other miners recognize this, and they start working on the next block of transactions.
So, in simple terms, miners pick transactions in Bitcoin based on the fees offered by people sending those transactions. They pack them into a block, solve a puzzle, and the first one to solve it gets to add their block to the Bitcoin blockchain and earn some bitcoins for their efforts. It’s like a race of traffic police officers letting cars onto the highway, and the fastest one gets a reward.
