Step by step explanation of how Mining work.

[Wenbing]

Step By Step Explanation of How Mining Work.

[Step1:
We have many miners that are prepared to solve a complex problem to validate cryto transaction.
The miners have raw materials such as electricity access, hardware and labour.

Step two:
When transaction take place, the various miners compete to see who'll prove the transaction that take place in the system.

Step three:
A miner that is able to prove the transaction is valid, then a block is added to the ledger called blockchain and it'll become public.

Step four:
For the proof of work accuracy done by the miner, he will be rewarded by some coins.

Step five:
The same process is repeated again.

Advantages of PoW and blockchain.
The two advantages of PoW are:
~Elimination of double spending which is a limitation of the fiat currency.
~ Elimination of fraudulent transactions.

Is it possible for miners to swap from mining one coin to mining another?

Can a miner mine for Bitcoin and other altcoin at the same time?

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[pooya87]

it is not clear if this is a question or an explanation but the first part (the steps) are wrong.
the miners don't compete for transactions, they compete for finding the correct hash for the block they have and are working on it. for details you can read an article like this one: https://www.coindesk.com/learn/bitcoin-101/how-bitcoin-mining-works

Is it possible for miners to swap from mining one coin to mining another?

it depends on that other coin. there are lots of coins that have copied bitcoin exactly so their rules are the same as bitcoin. as a result a certain setup for bitcoin and the equipment mining bitcoin (ie. SHA256 ASICs) can be used to mine other altcoins so the miner can switch.
but if the altcoin is using a different algorithm (eg. LTC) then the switch is not possible.

Can a miner mine for Bitcoin and other altcoin at the same time?

in a sense yes. there is a method called merge mining which is a setup to mine more than one cryptocurrency at the same time. a miner who is looking for that hash in a coin with a high difficulty (like bitcoin) can find other bigger hashes that are invalid for that coin but could be valid for other coins.
https://bitcoin.stackexchange.com/questions/273/how-does-merged-mining-work

[forbesmining]

At what stage do you become bankrupt?

[Salamstar]

Is it possible for miners to swap from mining one coin to mining another?

Can a miner mine for Bitcoin and other altcoin at the same time?

To understand the issue of cryptocurrency mining, we need to know and understand what the cryptocurrency is originally, the cryptocurrency originally is a digital non-physical coin based on cryptography for safe transactions.
And I think it is possible for miners to mine bitcoin and other cryptocurrencies because it is based on the same principle at work and the most popular cryptocurrency currently is bitcoin, followed by ethereum, and other currencies that develop rapidly like BitcoinCash, Litecoin, Dash ... all of which are cryptocurrencies that differ in their algorithms It all depends on the blockchain protocol.

[Wenbing]

<snip>
in a sense yes. there is a method called merge mining which is a setup to mine more than one cryptocurrency at the same time. a miner who is looking for that hash in a coin with a high difficulty (like bitcoin) can find other bigger hashes that are invalid for that coin but could be valid for other coins.
https://bitcoin.stackexchange.com/questions/273/how-does-merged-mining-work

Can they also switch to mine other coins due to the high profitability of mining a particular coin compared to others?

At what stage do you become bankrupt?

I believe a miner become bankrupt when the TC >TR for a long time. At this point the miner is making loss in the business.

He can decide to switch to other coin mining or leave the business at this stage.

[moderator's note: consecutive posts merged]

[pooya87]

<snip>
in a sense yes. there is a method called merge mining which is a setup to mine more than one cryptocurrency at the same time. a miner who is looking for that hash in a coin with a high difficulty (like bitcoin) can find other bigger hashes that are invalid for that coin but could be valid for other coins.
https://bitcoin.stackexchange.com/questions/273/how-does-merged-mining-work

Can they also switch to mine other coins due to the high profitability of mining a particular coin compared to others?

as i explained above this, it depends on the algorithms but as long as the both coins were the same the switch can happen. in fact many altcoin miners exactly survive this way by switching from one coin to another when the first coin dumps and the other starts pumping. of course you should keep in mind that most altcoin miners don't use specialized equipment  such as ASIC so their options for switching are a lot more since they use CPUs/GPUs.

[joniboini]

I believe a miner become bankrupt when the TC >TR for a long time. At this point the miner is making loss in the business.

He can decide to switch to other coin mining or leave the business at this stage.

Some miners that I know have short term loss tolerance. Essentially, they're okay mining in loss for some time because they believe in the next days/weeks some majors things are gonna happen to the coins that they currently mined. This is speculation driven so that's that.

Btw, stop double posting. It's not allowed. You can multi-quote and reply each message properly.

[mocacinno]

About mining different coins with the same ASIC, i agree with pooya87 but wanted to elaborate.

Mining bitcoin is basically:

• Collecting and verifying broadcasted, unconfirmed transactions
• Building a merkle tree
• using the hash of the previous block header + merkle tree + nonce + extra data as a new block header
• Using an ASIC to iterate trough the nonces, each time creating a sha256d hash of the "new" header with the "new" nonce
• If the miner finds a nonce for which the sha256d hash of the complete header is  under the current target, he has found a valid block, and he's allowed to broadcast said block

So, as long as the coin uses sha256d as it's POW algorithm, you can mine said coin with a sha256d ASIC. IF the coin uses (for example) scypt as it's POW algorithm, it can be mined with a scrypt ASIC, just like all the other coins with scrypt as it's POW

[MicroGuy]

1. A miner mines a block and all the transactions in the block are recorded in the NSA tracking database (aka blockchain).

End.

[Sadlife]

Is it possible for miners to swap from mining one coin to mining another?

Can a miner mine for Bitcoin and other altcoin at the same time?

Well technically yes, you could just install the proper requirements such as drivers and software and download the necessary modules in order to mine that altcoin. Mostly you could it in the altcoins main website or here in there ANN if they have link to their mining guide and supports POW.

[mocacinno]

Well technically yes, you could just install the proper requirements such as drivers and software and download the necessary modules in order to mine that altcoin. Mostly you could it in the altcoins main website or here in there ANN if they have link to their mining guide and supports POW.

The OP is talking about bitcoin, you need a sha256d asic. If you have a sha256d asic, you can mine other coins with sha256d as their POW algo without downloading and installing drivers or modules. As a matter of fact, if you run into an altcoin that claims to use sha256d as it's POW algo, but tries to make you download modules or drivers to mine said coin: walk away, it's a trap...

[cosmofly]

The two advantages of PoW are:
~Elimination of double spending which is a limitation of the fiat currency.
~ Elimination of fraudulent transactions.

Is it possible for miners to swap from mining one coin to mining another?

Can a miner mine for Bitcoin and other altcoin at the same time?

That is impossible, 1 machine only can dig 1 coin. PoW is really a good new way of doing business because it can bring a stable profit and not take too much risk. but I also know PoS, the process to work and receive rewards is like PoW but we don't need to invest any machines. In a staking program, the more you spend your money, the more likely you are to have one of the fastest blocks solving rates and get a lot of money. This is like a competition of money guys. and especially you can divide capital and mining many alts that support PoS, that's its bright spot.

[Wenbing]

1. A miner mines a block and all the transactions in the block are recorded in the NSA tracking database (aka blockchain).

End.

Are you indirectly saying that the whole mining process is one step?
I believe just as others have explained above,before mining one has to pass through some process which are means to an end.

[Exolix]

if the purpose of the post is to figure out what mining is, then a detailed and simple explanation can be found here https://www.bitcoinmining.com/

[MicroGuy]

1. A miner mines a block and all the transactions in the block are recorded in the NSA tracking database (aka blockchain).

End.

Are you indirectly saying that the whole mining process is one step?
I believe just as others have explained above,before mining one has to pass through some process which are means to an end.

No. I was simplifying the process into an easy to understand step.

[Bobby park]

Actually I don't even have more (far) knowledge on how Bitcoin mining works, but I know what was the basic concept about mining and what are those equipment should to be use for starting Bitcoin mining. I want to share another information and ideas that can help others that would like to start mining.


How Bitcoin Mining Works?

Where do bitcoins come from? With paper money, a government decides when to print and distribute money. Bitcoin doesn't have a central government.

With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine.

Bitcoin is Secure

Bitcoin miners help keep the Bitcoin network secure by approving transactions. Mining is an important and integral part of Bitcoin that ensures fairness while keeping the Bitcoin network stable, safe and secure.

In Bitcoin mining miners are also used mining hardware equipment called antminer and this equipment has a different types base on electric consumption and maintenance.

[mocacinno]

Actually I don't even have more (far) knowledge on how Bitcoin mining works, but I know what was the basic concept about mining and what are those equipment should to be use for starting Bitcoin mining. I want to share another information and ideas that can help others that would like to start mining.
--snip--

Are you sure this isn't plagiarised from https://www.bitcoinmining.com/ ?

https://web.archive.org/save/https://bitcointalk.org/index.php?topic=5244118.msg54324812#msg54324812

[TheBeardedBaby]

Are you sure this isn't plagiarised from https://www.bitcoinmining.com/ ?

https://web.archive.org/save/https://bitcointalk.org/index.php?topic=5244118.msg54324812#msg54324812

It is obvious >
Quote from : https://www.bitcoinmining.com/

How Bitcoin Mining Works

Where do bitcoins come from? With paper money, a government decides when to print and distribute money. Bitcoin doesn't have a central government.

With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine.
bitcoin is secure
Bitcoin is Secure

Bitcoin miners help keep the Bitcoin network secure by approving transactions. Mining is an important and integral part of Bitcoin that ensures fairness while keeping the Bitcoin network stable, safe and secure.

It's sad to see accounts destroyed just like that. It's soo simple, people, just mention your sources, that's all!
It's too late now.. sorry for your loss Bobby park 24 earned merit blown away.
... rules.. rules... rules.... read them god damn it .

[Sanugarid]

What I know about mining is just as shallow as this, there is nothing I know about how difficult the mining is. And the competition among Miners is not on proving the blocks but on the responsiveness and speed of their tools, the latest the equipment the faster they compute for hash.

Do you have easy way how to start mining with low budget? many people recommended mining tool with higher price but I think need solution what have to do for mining with low budget and get much earning every day, I know many people return from mining working because they only earn little reward every day.

If you are planning to have small mining farm, don't do it. I've read some rumors about the small miners that if they will not expand their operation they are going to forced quit not by their miner competitors but the expenses they will generate lesser than what they are going to get since the halving will purposely cut the supply into half. Although they can still mine other coins at low rewards.

[Utoy101]

If you are planning to have small mining farm, don't do it. I've read some rumors about the small miners that if they will not expand their operation they are going to forced quit not by their miner competitors but the expenses they will generate lesser than what they are going to get since the halving will purposely cut the supply into half. Although they can still mine other coins at low rewards.

You are right, mining is not what one will venture into with small budget due to many reason which the most important one is the huge processing power requirements to run mining activities, gone are the days when even a common computer user with light processing powers can mine cryptos on such low end computers, a simple web search of mining farms will show how high end systems and computer processors are being use to have a profitable mining and secondly, like you said, if you are not well enforced with huge capital to cave a perfect place for yourself in the market, the bigger fishes will just eat up your  potential profit generation margin