What is Bitcoin Mining

 Bitcoin mining is the process of creating new bitcoins by solving puzzles. It consists of computer systems equipped with specialized chips that compete with each other to solve mathematical puzzles. The first bitcoin miner (as these systems are called) to solve the puzzle is rewarded with bitcoins. The mining process also confirms transactions on the cryptocurrency network and makes them trustworthy.

Shortly after Bitcoin was launched, it was mined on desktop computers with normal central processing units (CPUs). But the process was very slow. Today, cryptocurrencies are created using large mining pools that span many geographies. Bitcoin Miner aggregates mining systems that consume large amounts of electricity to mine cryptocurrencies.

Much like using large equipment and machines to extract gold from the ground, bitcoin mining uses large systems similar to data centers. The system generates new coins by solving math puzzles generated by the Bitcoin algorithm.

By solving math problems, bitcoin miners rely on the cryptocurrency network by validating transaction information. It confirms a transaction of 1 megabyte (MB) (single block size).2 These transactions can theoretically be as small as a single transaction, but typically run into the tens of thousands, depending on the amount of data each transaction stores. The idea of ​​verifying bitcoin transaction data is to avoid double spending. For printed money, counterfeiting is always a problem. But usually when you spend $20 in a store, the bill is in the employee's hand. But when it comes to digital currency, the story is different.

Since digital information can be reproduced relatively easily, there is a risk with bitcoin and other digital currencies where users can make copies of bitcoin and send it to other parties while keeping the original.

In the heart of the bitcoin-mine, mathematical puzzle must be solved from miners to earn petquin rewards. The puzzle that evokes the motor document is called a sign of computer work, issued by mountain people in Bitcoin-mine. Although he is often known as a complex, my puzzle is very simple and can be described as premiums.

Mines in the Petcuin network try to reach a hexadecimal number of 64 kgs, less than or equal to the targeted retail in Sha 256, Australian Petcuin algorithm. Mines formed powerful power in the form of multiple processing units in the form of multiple processing units, with different levels of megahashes per second (MH / s), gigahashch in the second (GH / s) or terahashes in each of which were seconded (th / S) Spit on the device, board all 64 sets until a solution intervene. A system that guesses a number less than or equal to a hash is rewarded in Bitcoin.

Here is an example that illustrates the process. Suppose you want your friend to guess the number between 1 and 100 that you made and wrote on a piece of paper. Friends do not have to guess the exact number. You must be the first to guess a number less than or equal to your number.

Here are the three main charges of the Bitcoin Mine:

Electricity: This is the power managed by its mining systems 24 hours a day and 7 days a week. This can perform a substantial factor. If you think that this process consumes as much as a few countries, costs can be quite large.

Minieri Systems: Unlike popular narratives, administrative computers and regular game systems are not suitable for bitcoin mines. This process can heat these systems and create bandwidth issues in a home network. Integrated application chip systems that are customized machines for the bitcoin mine form the main investment of bitcoin children's infrastructure. The price range for this machine ranges from $ 4,000 to $ 12,000. Despite these high costs, a single ASIC mount system is less than a single Bitcoin. Bitcoin miners configure thousands of ASIC systems that operate 24/7 as a mining pool to generate the 64-digit hexadecimal numbers needed to solve hash puzzles.

Network Infrastructure: Network speed does not make a big difference in the Bitcoin mining process. However, it is important that you have an uninterrupted internet connection 24 hours a day, 7 days a week. Connections should also be delayed by adjacent mining pools. A dedicated network reduces external reliance and minimizes latency. Being offline does not necessarily interrupt the transaction synchronization process. However, after the connection is restored, the process can be time consuming and error prone.

For a miner to benefit from an investment, the sum of the costs of these three inputs must be lower than the output (in this case the price of Bitcoin). According to bit coin trip, ideas looking for cryptocillin may be attractive statement.

Despite some Bitcoin programs, they say that cryptographic mining is not a kind of hobby. This is an expensive company with advanced default probabilities. As shown in the section on my problem, there is no guarantee that bit coin rewards are received even after critical costs and efforts. Collect mining systems and collect mining systems to make small duties that bitcoins can provide the way. However, even these companies are driven by the volatility of cryptocurrency prices. If cryptocurrency prices fall like in 2018, it will become unprofitable to operate the bitcoin mining system and force small miners out of business. More dips. it attracts attention.