What İs Bitcoin Mining?

In today's monetary system, while paper money can be printed and produced by governments as needed, production in Bitcoin does not. Bitcoin is produced by computers and hardware that produce processing power under a concept called “mining“.

How is Bitcoin Mining done?

Bitcoins are constantly sent to another person through money transfers or payments. But if all of these payments and transfers had not been recorded in some way, no action could be followed regarding who paid what. The Bitcoin network creates a list of all these transactions that have taken place within a certain period of time under a single record and calls it a “block.. The job of Bitcoin miners is to approve these transactions with the processing power they create and keep them in records called “blocks..

What does the word “Hash?

The list of all records created by blocks approved by Bitcoin miners is called chain block chain.. The block chain can be viewed from which Bitcoin address. When a new block consisting of operations performed at a periodic time (approximately 10 minutes time period) is added to the blockchain; A very long list of transactions taking place on the Bitcoin network is created. A copy of this list added to the block chain is distributed to everyone on the Bitcoin network, making everyone aware of the process.

But this accounting book, called the Block chain, must be reliable and should not be tampered with by any force. At this point the miners step in to ensure the reliability of the block chain.

When a new block with operations is created, miners process the information in that block. Mathematical formulas are applied to this information and a summary of the long list containing the operations in the block is formed with numbers. This is called “hash.. These summaries, called hash, are appended to the end of the block chain with the newly added block. Summaries ensure that the information in the long list of operations is reduced without loss.

An interesting feature of these summaries, called Hash, is that although it is simple to summarize a repository such as Bitcoin blocks, it is practically impossible to browse the actual data from this summary. Even though obtaining hash from data in Bitcoin blocks is simple, every “hash üret produced is unique. If you change any character within this Bitcoin block, the entire summary will change.

Miners do not use only the operations in the block to create a hash. Another data that miners use other than the operations in the block are “hashes” added to the end of the blocks.

Because the hash of each block is generated using the summary of the previous block. In this way, each block contains information from the previous block, which means that the newly added block is associated with the previous block. If someone wants to change the operations in these blocks, everyone will be notified by the system.

If someone wants to perform a fake operation by replacing a block in the block chain; this will also change the summary of that block. This change affects the whole chain as each block contains information from the previous block. As soon as someone looking at the block chain notices this change, the counterfeit block is identified.

Competition for coins

So far we have learned how miners make blocks. Miners are competing with each other to create these blocks, using developers developed for this job. Whenever someone finishes summarizing the block, he will be rewarded with 25 Bitcoins. The block chain is updated and all network contacts are notified.

This award is a system for encouraging the miners and for carrying out the transactions.

We have already stated that it is simple to summarize the operations in the block. Computers are doing really well on this. But if the extracting process were consistently the same simplicity, all Bitcoins would be produced in a short time. So the Bitcoin network has to make it difficult. Bitcoin protocol, this hardening process "proof of work" is carried out with the so-called system.

The Bitcoin protocol requires a clear view of the generated summaries: the summaries must have a certain number of zeros at the beginning. There is no way to predict what these summaries will look like. What these summaries look like is understood only when they are produced and the whole summary changes with new data.

Miners constantly produce new summaries to produce the summary in the appropriate format and use a number called “nonce esn. The nonce value also changes for each inappropriate summary. Here



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