Mining

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2 years ago

 


In this digital age, crypto mining is considered to be a never-ending process. Yes, it is a decentralized form of digital asset introduced in early 2000 to eliminate the centralized systems. Mining is a complex process of verifying the transaction and adding them to what we call public ledger(blockchain). Blockchain is a chain of blocks having previous transactions.

All the transactions and the process of mining are scrambled. All the scrambled are recorded in the form of blocks and then the blocks are added to a comprehensive chain of blocks called a blockchain. The miners fight for transactions and solve complex mathematical problems or puzzles. There are various renowned  online sites for mining that are popular  


 Goals of Mining

  1. It is administered to get a coin network. Mining is performed very minutes and seconds hence called checking transactions

  2. Miner gets a reward for verifying the fractions of coins.

  3. To achieve expenses which include power and hardware 


Mining bitcoins using Mobile 

Yes, it is quite possible to mine bitcoin using the mobile app. So coin do not require proof of work mechanism. They are in initial stage of development Now a day smartphone with great tech has the power of mining but the rewards are minimal in the case of mining on mobiles. The percentage of rewards are distributed among miner according to the share


The question arises that where the bitcoin com come from, well the process of generating bitcoins come from the process of mining performed by miner the developers. Mining is referred to extraction finite resources for the earth which are limited in nature same as in crypto mining, the bitcoins are limited to 21 millions. Miner uses a highly advanced computing machine to mine bitcoins by solving complex mathematically algorithms. Whenever miner extract bitcoin they are rewarded a fees for the process of mining on per block of bitcoins When the new bitcoin is add so the bitcoin ledge is updated internationally hence a new block is been added to the blockchain 


Now the question is how are the miners are paid for creating bitcoins. According to data of year 2008 the reward is almost half of the actual prize of bitcoin itself. But as the time passed and bitcoins are discovered the ration of reward decreased as in 2012 is 25% and so on. The process of reward half every 4 years and this is call halving in the rewards system to miners. When Satoshi Nakamoto create bit coin in early 2000 he set fairly simple rules for rewarding system for miners and would be sustainable 



The characteristic of a rule defined by Satoshi Nakamoto contains 

  1. Network is determined by the power its has, its harder to solve the power that it creates. The more the miners the harder it is to solve the mathematical puzzle.

  2. As the bitcoin are finite in nature so it would take prolong amount of time to mine the bitcoins and would take many years to mine all the bitcoins.it takes 10 min to mine a bitcoin as as it help in controlling the inflationary pressures as in the case of centralized bank and governance 







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