What is Bitcoin mining?
As you all know that Bitcoin is not under the control of the government or a single entity also it operates as a peer to peer network. So, after hearing this, you may wonder, where does the Bitcoins come from? Well, the answer is, Bitcoin is generated through “Mining”.
Bitcoin mining is a process of creating new bitcoins by solving complex math problems with the help of high-powered computers having specialized mining software/program. Miners use this program and a lot of computer resources to compete with other miners in solving complicated mathematical problems. It is often termed as a running race of brain wherein people scratch their brains for getting correct answers for solving the most complex mathematical problems.
Each transaction corresponds to the purchase or selling or transfer of funds from one portfolio to another using bitcoin. It is very necessary to record this transaction and it is the miner’s job to record in the public ledger i.e. Blockchain. Miner also has to check the transaction’s accuracy along with double-spending (you cannot spend the same bitcoin twice).
How does it work?
For every transaction to be confirmed, firstly miner has to verify 1 MB worth transaction and secondly in order to be included in the blockchain miner has to solve a complex math problem also called as “Proof of work”. These solutions are very hard because they require millions of calculations. All the calculations are to be done very fast before the block is accepted by the network and rewarded. The current average time for block finding is 10 minutes. For maintaining chronological order in the blockchain, the proof of work depends on the hash of the previous block making the transactions irreversible. Because reversing will require recalculation of minimum 51% previous blocks.
If two blocks are found at the same time, the first one is honored by the miners and switched with the blockchain just before the next block is found which maintain the consensus and makes mining secure. The bitcoin mining is so secure that even if a miner process a fraudulent network, the nodes will automatically reject that block as per the bitcoin protocol.
Can I become a Miner?
Bitcoin mining is gaining a lot of people’s interest down the line and yes anyone can become a miner. Nowadays, the only requirement to become a miner is thorough knowledge, investment of sufficient resources and time, cheap electricity, and big data centers. Having all this can give a chance to become a bitcoin miner.
Steps for becoming a bitcoin miner
- Buy the Bitcoin Mining Hardware
2. Download Bitcoin Mining Software
3. Join Mining Pool
4. Set Up A Bitcoin Wallet
5. Stay Up To Date With every Bitcoin News