Bitcoin Forum
November 06, 2024, 11:31:23 AM *
News: Latest Bitcoin Core release: 28.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: The Blockchain Lottery: How Miners Are Rewarded | Coindesk report  (Read 872 times)
nomi913 (OP)
Newbie
*
Offline Offline

Activity: 1
Merit: 0


View Profile
November 24, 2014, 09:49:20 AM
 #1

As an incentive for users to update the blockchain as frequently as possible, Bitcoin uses a lottery-based reward system. Many people become miners and try to be the first to add a block to the blockchain. Then, based on some probability, a winner is chosen and gets to add a block.

What is the purpose of using a lottery like this to run Bitcoin? Well, let’s imagine Crowley wants to buy a $10,000 car from Clarice. Using traditional currency, two people engaging in this transaction would probably go to a bank and have the money transferred between their bank accounts

SOURCE: https://www.coindesk.com/blockchain-lottery-miners-rewarded/
lihuajkl
Legendary
*
Offline Offline

Activity: 1596
Merit: 1000


View Profile
November 24, 2014, 01:43:43 PM
 #2

  using lottery as an analogy is making ppl easy to unsterstand the mining process of bitcoin. But the chance of winning is depending on the hashpower you are getting comparing with other miners.
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!