How does Bitcoin Mining work?

[liliiaolivia]

Tell me pls

[NanaLelyakova]

Miners all compete with each other to do this, using software written specifically to mine blocks. Every time someone successfully creates a hash, they get a reward of 25 bitcoins, the blockchain is updated, and everyone on the network hears about it. That’s the incentive to keep mining, and keep the transactions working.

The problem is that it’s very easy to produce a hash from a collection of data. Computers are really good at this. The bitcoin network has to make it more difficult, otherwise everyone would be hashing hundreds of transaction blocks each second, and all of the bitcoins would be mined in minutes. The bitcoin protocol deliberately makes it more difficult, by introducing something called ‘proof of work’.

[mihohil]

People are sending bitcoins to each other over the bitcoin network all the time, but unless someone keeps a record of all these transactions, no-one would be able to keep track of who had paid what. The bitcoin network deals with this by collecting all of the transactions made during a set period into a list, called a block. It’s the miners’ job to confirm those transactions, and write them into a general ledger.

[denny.pac]

Every ten minutes or so mining computers collect a few hundred pending bitcoin transactions (a “block”) and turn them into a mathematical puzzle. The first miner to find the solution announces it to others on the network. The other miners then check whether the sender of the funds has the right to spend the money, and whether the solution to the puzzle is correct. If enough of them grant their approval, the block is cryptographically added to the ledger and the miners move on to the next set of transactions (hence the term “blockchain”). The miner who found the solution gets 25 bitcoins as a reward, but only after another 99 blocks have been added to the ledger. All this gives miners an incentive to participate in the system and validate transactions. Forcing miners to solve puzzles in order to add to the ledger provides protection: to double-spend a bitcoin, digital bank-robbers would need to rewrite the blockchain, and to do that they would have to control more than half of the network’s puzzle-solving capacity. Such a “51% attack” would be prohibitively expensive: bitcoin miners now have 13,000 times more combined number-crunching power than the world’s 500 biggest supercomputers.

[alexnikon911]

Miners don’t just use the transactions in a block to generate a hash. Some other pieces of data are used too. One of these pieces of data is the hash of the last block stored in the blockchain.
Because each block’s hash is produced using the hash of the block before it, it becomes a digital version of a wax seal. It confirms that this block – and every block after it – is legitimate, because if you tampered with it, everyone would know.

[vikky]

The process of issuing bitcoins is called "mining" - the only way to obtain a crypto currency, built on the decision of computers to solve mathematical problems.

[Kateryna_Oli]

https://s-media-cache-ak0.pinimg.com/564x/50/94/95/509495ad7c0a70fbf2e467ddaae1e1d6.jpg - nice for explaining!!

Mining is the term used for running a series of calculations on a computer to verify the transactions that take place in the Bitcoin network. About every ten minutes, a new block of transaction data is created and the miners who created the block are awarded a few bitcoins. This serves the Bitcoin network both as a system to verify transactions and as a system for fairly distributing new bitcoins.

Although it used to be profitable to mine bitcoins with your standard personal computer, the cost of the electricity necessary to do so is now greater than the value of the bitcoins you could mine. Profitable mining now requires specialized hardware that can perform more computations with greater power efficiency.

GOOD LUCK!

[vitalino]

Where do bitcoins come from? With paper money, a government decides when to print and distribute money. Bitcoin doesn't have a central government.
With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine.

[KirillManhattan]

If on the fingers, then mining is a critical process for Bitcoin, consisting in creating new blocks and pursuing two goals at once. The first is the production of money supply. Every time the miner creates a new block, he is rewarded with a reward in the N-th number of coins, which he then spends somewhere, thereby launching new means into the network.The second and much more important goal is to ensure the operation of the entire network. Certainly, by reading the previous articles, you already asked yourself the questions "Who is the person who checks the transaction scripts?" Or "If I indicate already used output as an input, at what point will it be noticed?".So, all these actions are performed primarily by miners. Well, in fact, each member of the network to some extent ensures its security. Synchronize Bitcoin for so long not because you have to download 100 GB, but because you have to check every byte, count each hash, run each script and so on.

But if you draw the whole process, from clicking the "Send" button in your wallet and ending with viewing the block with your transaction somewhere on blockchain.info, then it will be the miners who decide whether your transaction will be in the block or not.

[Omeluk]

The bitcoin network deals with this by collecting all of the transactions made during a set period into a list, called a block. It’s the miners’ job to confirm those transactions, and write them into a general ledger.

[katepagava]

Miners all compete with each other to do this, using software written specifically to mine blocks. Every time someone successfully creates a hash, they get a reward of 25 bitcoins, the blockchain is updated, and everyone on the network hears about it. That’s the incentive to keep mining, and keep the transactions working.

The problem is that it’s very easy to produce a hash from a collection of data. Computers are really good at this. The bitcoin network has to make it more difficult, otherwise everyone would be hashing hundreds of transaction blocks each second, and all of the bitcoins would be mined in minutes. The bitcoin protocol deliberately makes it more difficult, by introducing something called ‘proof of work’.

Definitely, I wanted to write a reply, but u desribed it perfectly)

[Natalia_Volkova]

This picture does not show exactly how the operation passes with the bitcoin, but shows how to get profit.

[attachment expired]

[liliiaolivia]

Anyone can become a bitmaker-miner by running the software on specialized hardware. The mining equipment listens through the ether of transactions, through a decentralized peer-to-peer network and performs the necessary tasks to process and confirm these transactions. Bitcoin-miners perform this work because they can earn commissions from transactions that users pay for faster transactions, and newly created bitcops that are issued according to the unchanged formula.

[aikon]

I'm asking the same question myself, as in this topic thread. But how do the bitcoin acquire value, how are they then translatable into $ or other currencies?

[Borent]

I was interested in cryptocurrency mining before, but soon I realized that it was not very profitable. Now there are other options available for the extraction of cryptocurrency.