Investment Language 101 Series: TERM OF THE DAY: -- 'Target Hash' | E.8 | Trading Candle Cheat Sheet Incl. Each Episode.

in #bitcoin7 years ago (edited)


A series designed to help all the new people flooding into & entering Crypto/Investments daily who get thrown into the rabbit hole so to speak and everything is new to them.

It is a TLDR / Short Form Series, covering ONLY one thing each episode in blue collar, easy to understand language to give a SHORT OVERVIEW of the term or lesson of the day.

It is specifically designed this way to keep it short and simple.

People can then search out extra info if they wish.

I've never seen a regular series or resource running on Steemit to continually address this basic need so I decided to do it.


TERM OF THE DAY:


What is....

Target Hash?

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A target hash is a number that a hashed block header must be less than or equal to in order for a new block to be awarded.

The target hash is used in determining the difficulty of the input, and can be adjusted in order to ensure that blocks are processed efficiently.

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Breaking Down...

Target Hash

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Cryptocurrencies rely on the use of blockchains which contain the transaction histories, and are “hashed” or encoded into a series of numbers and letters. Hashing involves taking a string of data of any length and running it through an algorithm to produce an output with a fixed length. The output will always be the same length, regardless of how big or small the input is. The use of hashing means that anyone dealing with a blockchain has to remember the hash rather than the input itself. Each block will contain the hash of the previous block header.

Decoding and encoding the blockchain is referred to as mining. Mining involves the use of computers to run hashing algorithms to process the most recent block, with the information needed in mining found in the block's header. The cryptocurrency network sets a target value for this hash – the target hash - and miners try to determine what this value is by testing out all possible values.

The block header contains the block version number, a timestamp, the hash used in the previous block, the hash of the Merkle Root, the nonce, and the target hash. The block is generated by taking the hash of the block contents, adding a random string of numbers (the nonce), and hashing the block again. If the hash meets the requirement of the target, then the block is added to the blockchain. Cycling through solutions in order to guess the nonce is referred to as proof of work, and the miner who is able to find the value is awarded the block and paid in cryptocurrency.

The target hash for Bitcoin is a 256-bit number, and can be found in the block’s header. Mining a block requires the miner to produce a value (a nonce) that, after being hashed, is less than or equal to one used in the most recent block accepted by the Bitcoin network. This number is between 0- (the smallest option) and 256-bits (the largest option), but is unlikely to ever be the maximum number. Because the target hash could be a huge number, the miner may have to test a large number of values before being successful. An unsuccessful miner has to wait for the next block, which leads to miners likening the finding of a hash solution to winning a race or the lottery.

The target hash is adjusted periodically. The hash functions used to generate the new target have specific properties designed to make the blockchain (and cryptocurrency) secure. It is deterministic, meaning that it will produce the same result each time the same input is used. It is fast enough so as to not take too long to return a hash for the input. It also makes determining the input very difficult, especially for large numbers, and makes small changes to the input result in a very different hash output.


Further Reading/Resources


Trading Candle Cheat Sheet:

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Friend of the People -- Enemy of the State.

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I am leaving these images I made here until I figure out one that fits properly and looks right for the first/main image for the post/series.

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Since Steemit dev's changed the size of the picture frame that shows, it has honestly been a real problem getting images to match the screen, it was perfectly fine months ago before they messed around with it.

SMH.


Thanks for reading, have a nice day.


PixaBay has tons of free pictures for us all to use!!!
Super Easy/Fast Picture Edits / Resizing at: http://www.picresize.com/ and also https://www298.lunapic.com/editor/







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Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
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Carry On.

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The breakdown was really helpful, good work. Keep it up!

great article keep the good work

target hash....Very informative post and helpful for investers..
thanxs

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