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How do I start bitcoin mining ?

 

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  • The process of confirming the information in a blockchain block by creating a cryptography solution that meets particular requirements is know as bitcoin mining. When a proper solution is found the miner who found it first receives a reward in the form of bitcoin plus fees for the labour done. The reward for mining bitcoin decreases with time. This reward mechanisn will be repeated untill there are 21 million bitcoin in circulation. Once that number is achieved the bitcoin incentive will be discontinued and bitcoin miners will be compensated through fees paid for their efforts. 
  • The mining programme must create a random hash and attach another number to it known as the nonce or numbe used once. When a miner starts this value is always set to zero. The nonce varies by one with each attempt it starts at 0 then moves to 1,2,3,and so on. If the hash and nonce created by the miner are greater than the networke's goal hash the attempt fails and the miner attempts again. Every miner on the network repeats this process untill a hash and nonce combination that is less than Or equal to the target hash is found. The first person to achieve that goal receives the reward and fees and a new block is created. When that block is full. 
  • The bitcoin compensation that miners earn server as an incentive for people to help with the fundamental goal of mining legitimising and monitoring bitcoin transaction to ensure their legitimacy. Bitcoin is a decentralised cryptocurrency or one that does not reply on any bcentral  authority such as a central bank Or government to monitor it's regulation because numerous people all over the globe share these tasks. 

Why Bitcoin required miners :

  • The term mining on the blockchain refers to the computational labour thet nodes in the network perform in the hopes of earning new coin. In truth miner are being computational labour that nodes in the network perform in the hopes of earning new coins. In truth miners are being compensated for their services as auditors. They are in charge of determining the validity of bitcoin payments. Satoshi nakamoto the creator of bitcoin devised this practise to keep bitcoin users honest. 

what is the process of bitcoin mining?

  • Mining uses economic incentives to create a trustworthy and trustless method of sorting data. Third parties ordering transactions are decentralised and they are rewarded financially for right behaviour. On the contrary every misbehaviour leads to a loss of economic resources at least as long as the bulk of people stay honest. In the instance of bitcoin mining this is accomplished by generating a series of blocks that can be mathematically demonstrated to have been stacked in the proper sequence with a specific level of resource commitment . The procedure is based on the mathematical features of a cryptographic hash which is a standardised method of  encoding data .

why should you mine bitcoin ? 

  • Bitcoin mining is similar to gold mining in many ways . In the case of bitcoin cryptomining is a computer process that generates new bitcoin and monitors transactions and possession of the cryptocurrency . Bitcoin and gold miners are both energy-intensive endeavours that may yield substantial financial benefits . As a result you may mine btc for profit/rewards . Some bitcoin miners create bitcoin mining pools by pooling their resources with those of other miners . Miner groups who groups who operate together have a better chance of receiving awards had dividing revenues . Members of a mining pool must also pay a fee to be an element of the pooi .


FAQS:

What exactiy ate mining poois ? 

  • The miner who solves the riddle first obains the mining rewards and the  likelihood that a participant will be the one to solve the puzzle is proportional to the total mining power on the network ?
  • Because they are fuiiy digital records there is a possibility of duplicating counterfeiting or spending the same coin twice . Mining overcomes these issues by making it highly costiy and resource-intensive to do one of these things or otherwise ''hack'' the network . Indeed joining the network as a miner is significantly more cost-effective then attempting to sabotage it . 

Mining confirms transactions in what way ?

  • Mining in addition to putting fresh BTC into circulation plays an important role in verifying and validating new transactions on the bitcoin network . This is significant since there is no central authority judging which transactions are genuine and which are not such as a bank court government or anything ales . Instead the mining process uses proof of work (poW) to reach decentralised consensus .

Why is mining so energy-intensive ?

  • Anyone may run a mining programme from their PC or laptop in early days of bitcoin . However as the grew in size and more individuals became interested in morning algorithm became increasingly complicated to implement . This is because the bitcoin algorithm is designed to find new block just once . 

Is it legal to mine bitcoin ? 

  • The legality of bitcoin mining is totally depended on your geographical area . The notion of bitcoin has the potential to undermine fiat currency supremacy and government control over financial markets . As a result bitcoin is outright banned in several areas . 

Why are bitcoin required to be mined ?

  • Bitcoin are at risk of being cloned counterfeited or double-spent by the same coin many times .  mining decreases these hazards by making them costly and resource-intensive . 

How dose hashing validate transactions ? 

  • mining transactions are digitally validated and added to the biockchain record on the bitcoin network that you utillies . It is accomplished by solving complicated cryptographic hash problems in order to validate blocks of transaction on the decentralised  blockchain ledger . 

why is mining so energy-intensive ?

  • Bitcoin massive carbon footprint is driven by its decentralised nature .  It necessitates the use of computers to answer more complicated mathematical problems which uses more power than most people realise . 

Is it legal to mine bitcoin ?

  • According to thestreet citing a November 2021 law library of congress study bitcoin mining is prohibited in a number of nations including Bangladesh , China , Egypt , Iraq , morocco nepal and qatar . However it is legal in the united states and most other nations but all us states permit it . 

How can you become a member of a bitcoin mining pooi ?

  • Joining a bitcoin pooi is straightforward and free . The first step is to get bitcoin mining equipment . Then obtain bitcoin mining software . If you are not sure whether you want an unrestricted pool you can choose for paid facilities that charge a proportion of pool costs .


what is an appropriate hash rate for cryptocurrency mining ?

  • A bitcoin miner may achieve a hash rate of 10Th/s with a good power supply mining gear and power efficiency . However the earnings of bitcoin mining is determined by electrocity costs bitcoin price and power usage .


CONCLUSION :

  • To validate transaction on a bitcoin blockchain network a miner must choose between pool mining and solo mining . To produce a cryptocurrency key for each transaction they must solve complicated mathematical hash puzzles . The mining programme generates a block by encrypting it with SHA 256 which turn text into a 256 bit sting . This is referred to as a merkle tree or hash tree with each lesf node representing a block hash and non leaf nodes representing the hash of the subsequent nodes .


REFERENCE :

https://www.investopedia.com/tearms/b/bitcoin-mining.asp

https://www.simplilearn.com/bitcoin-mining-explained-article



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