What's behind the mining? Where is all that hashing power used?

[endriuska]

The subject says it all. Do we even know what is being done hashing power we produce?

[Photon939]

It is used to create a hash value with a number of leading zeroes that matches the current difficulty level. The hash is comprised of previous and current transaction data as well as some arbitrary data.

The hashing power goes to secure transactions and nothing else.

[doosey2]

It's solving SHA-256 algorithm - hashing the block header plus a nonce to find a value less than or equal to the current_target.

[wasted]

we are decrypting hashs for the NSA.. its cheaper for us to do it.. 

[crazyates]

Start here: https://en.bitcoin.it/wiki/Block_hashing_algorithm

If like that and want more, go here: https://en.bitcoin.it/wiki/Protocol_specification

[wrenchmonkey]

we are decrypting hashs for the NSA.. its cheaper for us to do it.. 

I think you mean we're decrypting NSA files, and selling them to the Russians... Now, put your tinfoil hat back on, Comrade...

[cp1]

The only useful work that mining does is to record transactions into the block chain.

And heat your house

[endriuska]

well i guess there's no definite answer what's behind all that power? it's not like it was built to make up a number and then try to crack it?

[bcpokey]

we are decrypting hashs for the NSA.. its cheaper for us to do it.. 

It'd actually be incredibly expensive if that were the case. To the tune of $450,000 per day ($164,250,000/yr). Just about any other way would be cheaper.

[notaek]

we are decrypting hashs for the NSA.. its cheaper for us to do it.. 

It'd actually be incredibly expensive if that were the case. To the tune of $450,000 per day ($164,250,000/yr). Just about any other way would be cheaper.

What do you mean?  Electricity costs or bitcoins produced?

[bitpop]

We are really cracking Chinese governments.