Mining

Bitcoin mining is the process of making computer hardware do mathematical calculations for the Bitcoin network to confirm transactions and increase security. As a reward for their services, Bitcoin miners can collect transaction fees for the transactions they confirm, along with newly created bitcoins. Mining is a specialized and competitive market where the rewards are divided up according to how much calculation is done. Not all Bitcoin users do Bitcoin mining, and it is not an easy way to make money.

Reference:

https://bitcoin.org/en/vocabulary

Bitcoin mining is the process of using computer hardware to do mathematical calculations for the Bitcoin network in order to confirm transactions. Miners collect transaction fees for the transactions they confirm and are awarded bitcoins for each block they verify.

Reference:

https://support.blockchain.com/hc/en-us/articles/213276463-Bitcoin-terms-glossary

The act of generating new bitcoins by solving cryptographic problems using computing hardware. Transaction record, also known as mining, is the process of adding transaction records to Bitcoin’s journal of past transactions, also know as the blockchain . The blockchain serves to confirm its transactions to the rest of the network. Through this public journal, Bitcoin nodes can distinguish legitimate bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere. Cryptocurrency transactions are bundled together in packets of data called “blocks”. The timely processing of these blocks is essential to the health of cryptocurrency. There is no central entity that can carry out the necessary processing, so the processing is delegated to the currency’s investors. This is called “mining”. The miners are offered incentives to take on the mining task. Computer hardware performs mathematical calculations for the Bitcoin network to confirm transactions and increase security. When a block of data is properly mined and specific predetermined algorithmic and mathematical criteria (collectively known as “ hash ”) have been met, the miner collects a reward of coins and transaction fees from the block the miner has processed. It is not required that one mine a cryptocurrency to invest in it. Mining serves a dual purpose. Mining validates transactions which results in the generation of new currency. Mining caps in Bitcoin means that the mining reward of coins will be phased out. When the cap is reached it is projected that transaction volume will be high enough to provide adequate incentive for miners to continue to take part in the process solely for a portion of the transaction fees. Mining is a process of finding valid hashes of a block header by iterating millions of variants of block headers (using nonce and extra nonce ) in order to find a hash lower than the target. The process is required to determine a single global history of all transactions grouped in blocks. Mining consumes time and electricity. At the present time, the difficulty of mining is so great that energy-wise it is not profitable to mine using video graphic cards. Mining is compensated with the award of transaction fees and block rewards of newly generated coins. For the Bitcoin Network, the term “mining” was coined because of the similarity bitcoin production has to gold mining. This nomenclature is inaccurate in that winning one block is not like striking a vein of gold. Rather, in this respect, bitcoin mining is similar to a lottery wherein each hash is a ticket to win. Increasing hash power does not increase the supply of bitcoins, but merely increases the chance that the miner will win the next block. Mining is a specialized and competitive market where the rewards are divided according to how much calculation is done. Mining is a very difficult process. Not all bitcoin users or investors mine coins.

Reference:

Malone, J.A (2015). Glossary of Bitcoin Terms and Definitions. United States: Lulu Press, Inc

The process of verifying transactions and contract execution on the Ethereum blockchain in exchange for a reward in ether with the mining of every block.

Reference:

http://ethdocs.org/en/latest/glossary.html

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