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    What is Bitcoin Mining? Essay (555 words)

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    Bitcoin Mining is the process of performing mathematical calculations by computer hardware to confirm bitcoin transactions and increase security. As a reward for your services, Bitcoin Miners can collect transaction fees for transactions they have confirmed and newly created Bitcoins. At the same time, you can think of Bitcoin Miner as an accountant and miner, because they do two jobs.

    They dig for the gold of the Internet: Bitcoin. In addition, they confirm the transactions and thus secure the Bitcoin network (accountant). There are countless of these miners scattered all over the world, regardless of time and place – Decentralized. The miners confirm all Bitcoin transactionsA block is a record in the blockchain that contains and confirms many pending transactions. On average, about every 10 minutes, a new block incl.

    The transactions attached to the blockchain, this is done by mining. When a bitcoin is sent, the miners confirm this transaction. The details of the transaction are stored in a public ledger. The entire public ledger, which includes all the bitcoin blocks, is the blockchain.

    In this general ledger all transactions and details can be viewed. For this work of verification, the miners will be rewarded with the transaction fees. That’s why bitcoins are safe because the miners check and confirm the transactions. In addition to confirming the transactions, the miners are still playing lotto: Who can decrypt the next block first and add the block to the network. The “winner” is then rewarded with bitcoins and the block found is then added to the blockchain.

    With Bitcoin, a block is found every ten minutes and attached to the general ledger. The more power the miner has, the faster it will guess in the numbers and the faster the block can be added to the network. However, the “block finding” is set to ten minutes, so the difficulty of finding a block (Difficulty) increases as the miners become too fast. The difficulty is adjusted to the number or speed of the miners so that a block is released every 10 minutes. The more miners, the harder it is for individuals to mine bitcoins.

    Because of this, mining pools have sprung up. In this, miners join together and are remunerated proportionately for their hash performance. A mining pool makes finding and decrypting a block more likely because the hash rate of all miners works together. The hash rate is the unit of measure of the computing power of the Bitcoin network. For security reasons, the Bitcoin network must perform intensive mathematical operations.

    If the network reaches a hash rate of 10 TH / s, that means it can handle 10 trillion calculations per second. Conclusion: The amount of distributed Bitcoins halves approximately every four years, until the time when the limit of 21 million Bitcoins was reached. This is about to happen in 2140, after which the miners are paid on the transaction fees. Anyone can run Bitcoin Mining – even with his laptop A big factor here is always the electricity costs / hardware costs Bitcoin Mining Pools are a good alternative to invest in bitcoin mining(Many people join together buy hardware share all the bill and the profits are split by percentage) The more people participate in Bitcoin Mining, the more stable the network becomes The more power you provide, the more bitcoins you can generate Other digital cryptocurrencies can be minted

    This essay was written by a fellow student. You may use it as a guide or sample for writing your own paper, but remember to cite it correctly. Don’t submit it as your own as it will be considered plagiarism.

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    What is Bitcoin Mining? Essay (555 words). (2019, Feb 18). Retrieved from https://artscolumbia.org/what-is-bitcoin-mining-essay-106700/

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