Bitcoin mining is a process that arouses the curiosity as well as confusion in the mind of those who have never thought or heard about virtual money. Yes, it is different from the common mining of gold or other natural resources from the earth. Many of us will also know that bitcoin mining is done by trading freaks who have a zeal in solving complex mathematical puzzles and then get rewarded in the form of bitcoins and transaction charges. These coins then make their way into the world through binary robots like Snap Cash Binary, merchants and wallets.
Transaction and coin release
The exact way of how bitcoin mining works still require some explanation and this article tries to crack down this topic. When a miner carries out a transaction, the public ledger converts this into a block and adds to the blockchain. The transaction is actually solving complicated mathematical puzzles and the miner who first solves them gets the block reward. This reward releases a new bitcoin into the market.
The actual process of adding blocks to the chain is done by network nodes. A network node is a computer system with strong configurations that run bitcoin software and the related transactions. To run a node, you just need such a strong system and internet connection to download the software. A specific port in the nodal network is left open to carry out the mining process and the nodes spread the transactions involving bitcoins throughout the network, just like the nerve centers in our nervous system. This spreading is like an escalating process where a few nodes get the information from the first node and then they spread the information to the adjoining nodes and so on. All these steps are to be completed in a few seconds and therefore the computer is required to have such a strong configuration.
The nodes which convert transactions into blocks are known as miners and this conversion is based on a hash matching condition. Miner has to find the number which in combination with the data contained in the block passed through a hash function, meets the specified result. This integer number in the form of concatenation is called a nonce and should be between 0 and 4,294,967,296 for a bitcoin.
Guessing starts at the mining
The miner has to keep on guessing a nonce or a group of nonces randomly till he finds the matching hash, which has a definite number of zeroes in the beginning. If the match is not achieved in that block, the miner has to try with a different block and once the match is achieved, other nodes are informed about this and the transaction is stopped. The first miner gets the block reward and the rest of the miners continue with the guessing game.