How Bitcoin Mining Works ? How Do Miners Solve Math Problems ?

in #cryptocurrency5 years ago (edited)

Bitcoin-mining.jpg

How Bitcoin Mining Works ? How Do Miners Solve Math Problems ?

Many of you already heard about cryptocurrency, mining,blockchain etc.
But most of the people don't know how mining system actually works.

Miners are not so much solving a math problem as they are spending a lot of effort making guesses until they guess correctly. Bitcoin works by having a linked set of "blocks" of transaction records that document who has what bitcoin.

Miners are solving hashes of the next block. In bitcoin the algorithm used is SHA256. A hash is the word (can be noun or verb) for a cryptographic algorithm that produces a repeatable but non-reversible string of numbers and letters, in SHA256 the outcome is a 256 bit string. Input data can be anything.

how-to-mine-bitcoins-bitcoins2.jpg

To make bitcoin work, they needed some way to ensure that the record of blocks is immutable, i.e. nobody can change it. The way they accomplished this was to create the concept of mining.

To produce or mine a bitcoin, the miners use a special software tool to solve some typical mathematical problems. And in exchange of that, they are issued a certain number of bitcoins. The main idea is to create a new block which gets added to the existing blockchain. Each block contains a list of all the recent transactions happened within the bitcoin network.

Icarus_Bitcoin_Mining_rig.jpg

Difficulties with mining :-

The SHA-256 hashing scheme is very quick. But creating a hash isn’t just enough. It is necessary to ensure that the hash produced is lower than the threshold set by the bitcoin network. Only then it can create a valid block. And if the hash produced by miner is above the threshold, then the miner has to try again.

The block chain is a public record of how much bitcoin each bitcoin wallet contains at any given time.

Its kinda tricky for non tech people but its worth it.. :p

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