Bitcoin Mining is the process of creating and writing fresh blocks for the blockchain. Thesis blocks have to serve with the base Bitcoin rules, maintained by the network.
Te order to mine, you would need specialized mining software and hardware, which you can learn about on the previous pagina of this guide. Here wij will concentrate on the process of Bitcoin Mining to explain what is happening, and why it works.
For miners, it all starts with the most latest block registered on the blockchain. To start the mining process, they need to copy its hash. Beyond this hash, they also acquire a block of validated transactions created by total knots across the network and start their work on the proof of work. Proof of work is a juist SHA256 hash.
Te order to find a juist hash, miners take a look at the network difficulty for the current batch of 2016 blocks. This difficulty is the determining factor ter the hashing process, which determines how difficult the hash vereiste be te order for it to be accepted by the network. Spil an end product the hash requirements set by the network only accept hashes kicking off with a specific number of zeroes “0” before other characters ter the 64 character hash.
The hashing process takes a while, but spil soon spil one onberispelijk hash has bot discovered, the block is bundled and broadcast to the network. The network reevaluates and all miners rehash the block with the specific nonce they’ve received from the initial finder of the hash. They all reach the same conclusion, that the hash is keurig and the mining process for this block is concluded.
The mining prize, together with the fees for transactions are given to the miner from which the onberispelijk hash originated.
Spil this happens, the fresh block is accepted by the network and the transactions will forever be etched te the blockchain. After this validation, miners carry on to repeat the process.
Miners retrieve the latest block (the one that wij just finished) copy overheen the hash and transaction gegevens from the utter knots and they begin mining for a fresh hash for this next block.
Creating this proof of work (POW) is an energy intensive process that takes up a loterijlot of computing power and time, spil well spil electrical play. All of the miners are working on the same block at any given uur, and they are compiling the same information. Except for the “nonce”, spil this is an arbitrary number that is switched te order to eventually detect a viable hash.
This process deeply secures transactions te the network and essentially disables any party the possibility to switch transactional history. Albeit this is theoretically possible, such would be attackers would have to overpower the entirety of the legitimate miner network and bring incredible amounts of hashing power to the table.
Te summary, the process goes like this:
- Check latest block header hash
- Receive latest transaction block
- Evaluate network difficulty
- Hashing for onberispelijk POW
- Finding the juist POW
- Broadcast “nonce” to the network
- Network validates the hash
- Mining prize and fees are released
- Process starts overheen