Bitcoin Forum
December 17, 2018, 01:42:26 PM *
News: Latest Bitcoin Core release: 0.17.0 [Torrent].
 
   Home   Help Search Login Register More  
Pages: [1] 2 »  All
  Print  
Author Topic: How Bitcoin mining works?  (Read 146 times)
AdoboCandies
Member
**
Offline Offline

Activity: 280
Merit: 64

Shitposting 521: -31/+490


View Profile WWW
February 10, 2018, 04:27:41 PM
 #1

I'm new to bitcoin and i'm very curious on how Bitcoin mining works?

PTON PRE-SALE Live    █████████████     FORESTING     █████████████  PARTICIPATE NOW!
█████ next-generation social media service based on blockchain technology   ██████
 █ ██ █  ● Twitter ● Facebook ● Youtube ● Telegram [EN] ● Telegram [KOR] ● Medium  █ ██ █ 
1545054146
Hero Member
*
Offline Offline

Posts: 1545054146

View Profile Personal Message (Offline)

Ignore
1545054146
Reply with quote  #2

1545054146
Report to moderator
PLAY NOW
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1545054146
Hero Member
*
Offline Offline

Posts: 1545054146

View Profile Personal Message (Offline)

Ignore
1545054146
Reply with quote  #2

1545054146
Report to moderator
Sudhik
Jr. Member
*
Offline Offline

Activity: 266
Merit: 5


View Profile WWW
February 11, 2018, 05:29:11 AM
Merited by krogothmanhattan (1)
 #2

Mining, is actually a process of verifying the overall of Bitcoin transaction.
And from that process, miners have also maintained the overall integrity of Bitcoin transaction data and information. The overall of that data, stored in a database called (Blockchain). Miners who have contributed to maintaining the integerity of the transaction's overall data and information are given a Bitcoin as reward, and those criteria has been set as the Bitcoin system protocol.
Because Blockchain is always maintained by its integerity by miners, the validity and security in the Bitcoin system becomes difficult to penetrate. And almost impossible, especially Bitcoin uses peer-to-peer network, and there is decentralized system, and there is no dedicated central server in it.
parassinghal
Full Member
***
Offline Offline

Activity: 210
Merit: 100


A BLOCKCHAIN SOLUTION TO DISRUPT TRADE FINANCE


View Profile
February 11, 2018, 05:43:27 AM
 #3

I don't know exactly how it works but mainly its renting your resources in blockchain network for the transactions of bitcoin and i think other crypto currencies also.

Cobalt9317
Copper Member
Sr. Member
****
Offline Offline

Activity: 434
Merit: 278

Offering Escrow 0.5 % fee


View Profile WWW
February 11, 2018, 05:49:13 AM
 #4

I'm new to bitcoin and i'm very curious on how Bitcoin mining works?

every block could only be mined using mathematics algorithm, however the complexity is increasing every block that's why a single miner could not profit from mining alone, he/she needs to join in a pool in which then they are going to share the 25BTC per block AFAIK.
newinbtc
Legendary
*
Offline Offline

Activity: 1092
Merit: 1001


View Profile
February 11, 2018, 05:51:37 AM
 #5

Welcome to bitcointalk forum. Before create a new thread you read the old thread its better way.

or you can read here - https://www.coindesk.com/information/how-bitcoin-mining-works/

basically - Every ten minutes or so mining computers collect a few hundred pending bitcoin transactions (a “block”) and turn them into a mathematical puzzle currently there is block reward is 25 Btc . this block size will be half after 842 day approx as per this website http://www.bitcoinblockhalf.com/

till now 16,857,800 Btc already founded out of 21,000,000
current difficulty - 2,874,674,234,416
current total hash rate - 22.30 Exahashes/s


This hash rate comes from your GPU power , from Computer its digital generated bitcoins which can be used worldwide but you need lots of free energy to mine bitcoin and lots of mining hardware.
Digitalbitcoin
Hero Member
*****
Offline Offline

Activity: 896
Merit: 500


Exchange via BitPayment.io


View Profile WWW
February 11, 2018, 05:57:27 AM
 #6

I'm new to bitcoin and i'm very curious on how Bitcoin mining works?

Well mining is a process of generation of altcoin. There is two type of computing power. 1. CPU and 2. GPU

Base of altcoin formulation starts from its type of work and algorithm used for its generation.

In case of Bitcoin, Bitcoin is purely Proof of Work type based cryptocurrency, which have its own specification for formulation. Bitcoin is based on SHA256 algorithm which supports to encrypt mined data and store it securely within block with help of cryptography and hashing power. Now when block gets solved miner who supports to network to alive along with verify transaction and keep all record on ledger of blockchain, receive rewards for their contribution.

This is about Bitcoin but many other cryptocurrencies are based on various algorithm and various types of work.

yj300316
Jr. Member
*
Offline Offline

Activity: 154
Merit: 1

The P2P Marketplace For Digital Content


View Profile
February 11, 2018, 06:09:30 AM
 #7

mining in a nutshell is, processing the transaction that has made.
for example you send me a bitcoin, then the miners will process our transaction using their mining tool.

W E M A R K   ❱ ❱❱   https://www.wemark.com/
Blockchain-based marketplace for digital content
Ira Dixon
Newbie
*
Offline Offline

Activity: 27
Merit: 0


View Profile
February 13, 2018, 08:49:45 AM
 #8

By mining, you can earn cryptocurrency without having to put down money for it. That said, you certainly don't have to be a miner to own crypto.  You can also buy crypto using fiat currency (USD, EUR, JPY, etc); you can trade it on an exchange like Bitstamp using other crypto (example: Using Ethereum or NEO to buy Bitcoin); you even can earn it by playing video games or by publishing blogposts on platforms that pay its users in crypto. An example of the latter is Steemit, which is kind of like Medium except that users can reward bloggers by paying them in a proprietary cryptocurrency called Steem.  Steem can then be traded elsewhere for Bitcoin.

befriendmywater
Member
**
Offline Offline

Activity: 378
Merit: 10


View Profile
February 13, 2018, 08:53:19 AM
 #9

By mining, you can earn cryptocurrency without having to put down money for it. That said, you certainly don't have to be a miner to own crypto.  You can also buy crypto using fiat currency (USD, EUR, JPY, etc); you can trade it on an exchange like Bitstamp using other crypto (example: Using Ethereum or NEO to buy Bitcoin); you even can earn it by playing video games or by publishing blogposts on platforms that pay its users in crypto. An example of the latter is Steemit, which is kind of like Medium except that users can reward bloggers by paying them in a proprietary cryptocurrency called Steem.  Steem can then be traded elsewhere for Bitcoin.


Well thank you for sharing the experience in the crypto market. I am really looking to make a profit by mining. Your article is really useful and I will apply the ideas you set out. I hope I will get a high profit when applying your ideas. hope you have a nice day.

Moses Short
Newbie
*
Offline Offline

Activity: 23
Merit: 0


View Profile
February 13, 2018, 08:54:09 AM
 #10

Bitcoin are mined in units called "blocks." As of the time of writing, the reward for completing a block is 12.5 Bitcoin. At today's price of about $8000 per Bitcoin, this means you'd earn (12.5 x 8000)=$100,000.

When Bitcoin was first mined in 2009, mining one block would earn you 50 BTC. In 2012, this was halved to 25 BTC. in 2016, this was halved to the current level of 12.5 BTC. In 2020 or so, the reward size will be halved again to 6.25 BTC.
If you want to keep track of precisely when these halvings will occur, you can consult the Bitcoin Clock, which updates this information in real time.

Marcus Kelly
Newbie
*
Offline Offline

Activity: 29
Merit: 0


View Profile
February 13, 2018, 08:56:04 AM
 #11

If “mining” sounds like a process which extracts value from Bitcoin, nothing could be further from the truth!
Miners are the backbone of the Bitcoin network:
Without miners, the network would collapse and lose all value.
The role of miners is to secure the network and to process every Bitcoin transaction.
Miners achieve this by solving a computational problem which allows them to chain together blocks of transactions (hence Bitcoin’s famous “blockchain”).
For this service, miners are rewarded with newly-created Bitcoins and transaction fees.
pandanpanda
Newbie
*
Offline Offline

Activity: 58
Merit: 0


View Profile
February 13, 2018, 09:15:51 AM
 #12

Mining, is actually a process of verifying the overall of Bitcoin transaction.
And from that process, miners have also maintained the overall integrity of Bitcoin transaction data and information. The overall of that data, stored in a database called (Blockchain). Miners who have contributed to maintaining the integerity of the transaction's overall data and information are given a Bitcoin as reward, and those criteria has been set as the Bitcoin system protocol.
Because Blockchain is always maintained by its integerity by miners, the validity and security in the Bitcoin system becomes difficult to penetrate. And almost impossible, especially Bitcoin uses peer-to-peer network, and there is decentralized system, and there is no dedicated central server in it.
Mining is a distributed agreement system used to confirm transaction queues by inserting them into chains. Mining arranges chronological sequences in chain-blocks, protects network neutrality, and allows different computers to agree on the state of the system.
Milo Hill
Newbie
*
Offline Offline

Activity: 26
Merit: 0


View Profile
February 15, 2018, 09:17:04 AM
 #13

What is Bitcoin mining?

Mining cryptocurrency is like mining gold or silver at a mountain. When you start digging into a mountain it's relatively easy but over time you will need more advanced equipment as the process gets dangerous and difficult. Mining cryptocurrency is basically solving mathematical problems and these problems get difficult with time. As the difficulty increases the miner would need fast and reliable technology.

How to start mining?

To start mining you need hardware (ASCI for Bitcoin and GPU for other cryptocurrencies) and electricity. Setting up a mining rig is expensive and requires cheap electricity so instead people join mining pools or mining clouds.

What is a mining cloud?

A mining cloud is website that offers mining services. It’s an alternative for people who would like to mine without worrying about hardware, electricity and maintenance. The most popular mining service is http://genesis-mining.com
Ira Dixon
Newbie
*
Offline Offline

Activity: 27
Merit: 0


View Profile
February 15, 2018, 09:18:32 AM
 #14

Mining is simply the process of solving a very complicated math problem via brute force until someone in the network gets the “right” answer. The problem they are solving is similar in structure to “find two prime numbers that multiple to the value y”, where the only way to solve the problem is to randomly try inputs until you get the right answer.

When a node is successful, they get the right to put the next block on the blockchain and get a reward for this work (currently ~12 BTC). The rest of the network then verifies this answer and, when accepted, moves on to solving the next problem.

Without getting into the details of what problem theses nodes are solving and how the network handles transactions, this is the basics of what mining entails.
Moses Short
Newbie
*
Offline Offline

Activity: 23
Merit: 0


View Profile
February 15, 2018, 09:20:38 AM
 #15

Bitcoin mining is is the process of operating the Bitcoin blockchain, which is an accounting system (a database) for BTC, a cryptocurrency.

Think about how normal cloud databases work: AWS runs on servers all over the world that are owned and operated by Amazon. When you want to make a change to the database, you verify your credentials (login/password) with AWS, instruct AWS to make the necessary changes, then wait while AWS makes the change.
Marcus Kelly
Newbie
*
Offline Offline

Activity: 29
Merit: 0


View Profile
February 15, 2018, 09:22:09 AM
 #16

The resources needed to do those calculations, give the value to Bitcoin. The resources are:

Computing power

Electricity to operate the hardware

Network bandwidth
amzad
Member
**
Offline Offline

Activity: 175
Merit: 10


View Profile
February 15, 2018, 10:21:19 AM
 #17

Before starting on bitcoin mining, it is important that we discuss bitcoins. Bitcoin is a form of digital currency that was created and is held electronically. Like other types of currency, bitcoins are not printed and no one controls them. Bitcoins are produced by people and they are increasingly been used in today’s world. They run on computers all over the world through software that can solve mathematical problems. It won’t be wrong to say that bitcoin is the first example of crypto currency.
Neljose
Newbie
*
Offline Offline

Activity: 26
Merit: 0


View Profile
February 15, 2018, 02:47:39 PM
 #18

Mining is done by Bitcoin miners. Miners solve, add and builds new blocks to the blockchain. For every block they solve, they are rewarded new Bitcoin by the network.
CryptoCare55
Newbie
*
Offline Offline

Activity: 69
Merit: 0


View Profile WWW
February 28, 2018, 06:09:39 AM
 #19

Every miner tries to solve a mathematical puzzle, which is the best way of verifying a transaction and the miner gets a reward for providing this service and hence they earn from mining.
totktonuzen123
Newbie
*
Offline Offline

Activity: 42
Merit: 0


View Profile
August 25, 2018, 01:01:13 PM
 #20

Bitcoin - to put it in plain language, bitcoin - virtual money in the form of a digital code that no one has ever managed to break, bitcoin can be reconsidered in some stores, and it is easy to buy it for saving your savings, or multiplying. In fact, bitcoin can be considered a financial asset.
Pages: [1] 2 »  All
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!