How Bitcoin Mining works - A complete process.
Bitcoin is a digital currency and is launched in the year 2009. In the year 2017, Bitcoin gets very popular and its prices touches sky high.
It is one of very first crypto currency invented by a Japanese. It is based on blockchain technology. So in today article you are able to understand how the blockchain technology works.
The method of earning bitcoin is called mining. How the whole process works is as below:
A mathematical formulae generates the bitcoin which is also called algorithm.
Initially Bitcoin is started with 50 coins, solving a mathematical formulae will generate batches of more coin in every 10 minutes.
The process of generating more bitcoin is called Mining. Anybody can generate bitcoin by solving mathematical equation but he or she must have computing power.
Different Open source software’s are used by miners to do mining.
These software’s primarily do two different types of task.
They confirm the validity of new bitcoin transactions which then recorded in a public ledger.
In the second step, the miners decodes an encrypted, unique ID, which is generated by the bitcoin formula, which is then confirmed to the public ledger which is known as “Blockchain”.
The blockchain creates a permanent, a publicly available history of every bitcoin transaction done over internet.
The Miners in turn rewarded with new bitcoin which are automatically generated by the bitcoin algorithm.
In Bitcoin formulae settings a total of only 21 million coin can be generated in the whole life cycles by the miners. The whole process of generating bitcoins can be supposed to be completed in year 2140.
This is the process how new bitcoins comes into shape. Hope you now have enough knowledge how mining work and what does it means.
Thank you for sharing your precious time reading this post. Hope you liked it!
#bitcoin #blockchain #cryptocurrency #education #steemit #steem #seesomethingrandomseesomethingnew