What exactly is done in bitcoin mining ?
Where does Bitcoin come from?
Why should a device make money just by turning it on? After reading this article, you will get the answers to these questions and you will understand the bitcoin mining process to a good extent.
Remember that to extract bitcoins you do not need to know how the network works or the meaning of mining, just as you do not need to understand how the Internet works to work with the Internet. Therefore, to learn bitcoin mining, you can refer to the “Bitcoin Mining Tutorial” article. But if you want to understand the mining process, read on.
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What exactly does bitcoin mining mean?
If we want to answer this question in simple language and in one or two lines, we must say: Bitcoin mining or bitcoin mining is a voluntary activity in which volunteers called “miners” (Miner), the processing power of their mining devices Are provided to the network to maintain network security and verify bitcoin transactions.
Of course, miners do not do this for the sake of God, but they are rewarded for it, and this reward is the bitcoin. In other words, when you send bitcoins to your friend, the miners behind the scenes help to verify your transaction by their activity, and the network rewards them for this.
So with mining, there are actually three main things to do:
1- Verification of Bitcoin transactions
2- Protecting the Bitcoin network
3- Generate new bitcoin units in a decentralized manner
The explanation we gave was in simple language so that you could understand mining more easily. In the following, we will examine bitcoin mining from a technical point of view.
Perhaps when you hear the term “bitcoin mining”, you imagine the coins being pulled out of the ground. But bitcoin is not that physical. So why call it mining?
Because bitcoin mining is not philosophically dissimilar to gold mining. In this way, bitcoins exist in the design of bitcoin codes and protocols (like gold found in mines) but are not yet available (like gold that has not yet been mined).
According to the protocol or the rules of bitcoin, there will be only 21 million units of it; Like gold, which is scarce and limited.
It can be said that the more scientific name of mining is Proof Of Work. In fact, the extraction process originated from an algorithm called proof of work, which was first used by Adam Back in his anti-spam system, called HashCash.
Spam attacks on computer systems were common in the early 1990s. Spam attacks mean sending useless messages and requests to the system to slow it down. In order to prevent spammers from sending useless messages, Adam Beck invented the requirement that users had to perform a series of mathematical calculations with their computer that required CPU consumption to send the message. This way, if someone wanted to send spam messages to the system, they would have to provide a lot of processing power.
Proof of work actually means that bitcoin miners or miners do something by which they can create a valid blockchain and gain access to bitcoin. Miners are rewarded by generating blocks of valid transactions and connecting them to the Chinese block.
Despite this process, in order to effectively attack the Bitcoin network and take control of it, malicious people must acquire more than 50% of the network processing power, which is very expensive for a network the size of Bitcoin, and it makes sense is not.
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What Are Nodes ?
First of all, we need to talk about nodes. A node in a bitcoin network is a computer that runs bitcoin software and helps maintain the work of the bitcoin network by participating in data transmission.
Anyone can run a node by downloading free Bitcoin software and downloading the entire blockchain transaction history (currently around 200 GB). Nodes validate bitcoin transactions and transmit them over the network.
Also read: Installation and implementation of Full Node bitcoin
But some nodes have special conditions called “mining nodes”.
In the early days of Bitcoin, all nodes were miners, but today mining nodes are different from purely valid nodes.
Miner nodes with processing power collect bitcoin transactions in packages called blocks.
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