Have you heard about Bitcoin mining? Probably yes! It may seem very complicated, but you need to understand one main thing. This activity within the Bitcoin ecosystem is a great way to understand its real function, as well as that of cryptocurrency in general.
Mining is one of the most important processes that supports the operation of the Bitcoin network. This system allows for the process of all the transactions that occur in the world, registering them in Blockchain technology.
Interested in the subject? By the end of the post you will know about:
- What is Bitcoin mining?
- How to choose the hardware to mine Bitcoin?
- How does the Bitcoin mining process work?
1. What is Bitcoin mining?
In order to understand what Bitcoin mining is, you have to know that behind this virtual coin, there is a technology called Blockchain. This technology is very powerful. It is possible to create numerous applications with it, which exists precisely to validate the transactions that are performed in this universe.
It is even possible to compare this feature with a large registry, which exists only to record transactions safely. Therefore, we can say that Bitcoin mining is nothing more than the process of recording these transactions in this great kind of book. Besides, it is also responsible for creating new currency assets, that is, more Bitcoins.
Of course this is not a very simple process. In fact, it is somewhat complex because it requires good cryptography practices. And this happens to ensure that all your security is guaranteed as well as maintain the integrity of your operations.
Bitcoins mining in practice
Going a bit further in the practical part of the Bitcoin mining, there are some important players in this activity: the miners, who are the users that make their computers available only for this process.
The role of miners is to solve complex mathematical calculations to fulfill their purpose. And this is nothing more than grouping the transaction requests of a given block to be able to protect it. All this using a key that is called a hash.
The fact is that solving this is not easy. Usually the one with the most computational power ends up taking the challenge. Besides, the higher the number of miners are in the network, the harder the mining process becomes.
2. How to choose the hardware to mine Bitcoin?
After all, you have to know how to choose the best one so that the mining process is as efficient as possible, as it is not any computer that can accomplish this.
So, to help decide on the best hardware to do the mining, we suggest analyzing 4 important pillars for this process:
- What is the cost of electric power when leaving the machine on;
- What is the financial investment necessary to acquire the hardware;
- What are the maintenance costs of the machine;
- What is the computer’s ability to perform mining efficiently.
In addition, we suggest consulting this site with more information on the subject.
3. How does the Bitcoin mining process work?
Buy high-speed hardware
After all, it is not a very simple activity and it is impossible to do with a conventional computer.
Ensure system neutrality
The neutrality of the system is closely linked to what we call consensus processes, which is nothing more than validating a registry in which all parties involved in the network enter into an agreement that it is valid.
Find the sequence of the transaction block
Solve calculations in real time
When you find a transaction, you have to solve it. And for this to happen successfully, you may have to work on calculations that are not so easy to solve. And they are adjusted in real time over the network.
Any miner who manages to add a transaction block to the Blockchain network receives a reward that revolves around 12 bitcoins. It may seem like little at first, but today 1 Bitcoin is costing around $ 4,846. That is a very good reward!
So just choose a good machine and adopt the good practice of the activity and success is guaranteed!