Introduction To Bitcoin Mining
With the usual physical currency, the central bank has the authority to print more money in order to add into the circulation. Bitcoin, on the other hand, is a digital currency and is not printed but rather mined by miners all over the world that are competing to find the coins first.
It is usual for online users in the network that are transacting through bitcoins to send and receive payment as bitcoin. The problem is that there is no record of the transactions which will be used as a basis to check if a user has paid or a merchant has received the payment. In order to solve this problem, the bitcoin network collected all the information regarding transactions that are made within certain times and then compile them into a list which is referred to as block. The task of the miners is to make sure that those transactions are legit thus the computer does it work and when a certain transaction is confirmed it is then recorded into the general ledger of the network.
The general ledger is consists of long chain of blocks that are referred to as blockchain. The blockchain is used whenever certain transactions have to be checked with the help of the record. There is no limit as to the address of the transactions and the point inside the network where it occurred. Every time a new block is full of transactions, it is connected to the blockchain. This chain will go on and on and will contain every transaction that has ever occurred inside the bitcoin network. The problem is that the general ledger should be always checked for accuracy and make sure there is no security breach and tampering that will happen. This is where the miners are used. They are the ones responsible in creating hashes, a code that makes sure everything is legit. Any tampering will be detected once the hashes are changed.
There is now a higher competition among miners of the bitcoin network since the supply is almost mined. This is why it is important for beginners to check proper bitcoin mining guide in order to keep up and start mining instantly.