Author Topic: How Bitcoin mining works? (Read 966930 times)

bitcoinforum.com · « **on:** December 17, 2017, 05:12:27 PM »

How Bitcoin mining works?

https://www.investopedia.com/tech/how-does-bitcoin-mining-work/

cointech · « **Reply #1 on:** December 28, 2017, 04:39:28 PM »

this is great, thanks!

Hardmandie · « **Reply #2 on:** December 30, 2017, 04:43:07 PM »

I have always wanted to know how bitcoin mining works. I read some hardwares are needed. How much do I really need to set up a mining software and hardware.

MaxXXXX · « **Reply #3 on:** January 28, 2018, 02:20:48 PM »

can not understand anything

bitbuddy · « **Reply #4 on:** January 30, 2018, 08:04:25 PM »

Whoever wants to even start thinking moving into Crypto World should have atleast read Satoshi's whitepaper.

Adelle · « **Reply #5 on:** February 07, 2018, 09:22:41 PM »

Basically it works like this:
Every ten minutes or so mining computers collect a few hundred pending bitcoin transactions (a “block”) and turn them into a mathematical puzzle. ... The miner who found the solution gets 25 bitcoins as a reward, but only after another 99 blocks have been added to the ledger.
The first miner to find the solution announces it to others on the network. The other miners then check whether the sender of the funds has the right to spend the money, and whether the solution to the puzzle is correct.

Bilkymesk · « **Reply #6 on:** February 13, 2018, 01:16:31 AM »

Quote from: Hardmandie on December 30, 2017, 04:43:07 PM

I have always wanted to know how bitcoin mining works. I read some hardwares are needed. How much do I really need to set up a mining software and hardware.

I wonder there is any software that can help to earn bitcoins without paying. I am newbie so I want to learn more before investing money on. Thanks

J · « **Reply #7 on:** February 14, 2018, 07:29:48 AM »

Quote from: Adelle on February 07, 2018, 09:22:41 PM

Basically it works like this:
Every ten minutes or so mining computers collect a few hundred pending bitcoin transactions (a “block”) and turn them into a mathematical puzzle. ... The miner who found the solution gets 25 bitcoins as a reward, but only after another 99 blocks have been added to the ledger.
The first miner to find the solution announces it to others on the network. The other miners then check whether the sender of the funds has the right to spend the money, and whether the solution to the puzzle is correct.

The mining-pool get 12.5 BTC per block, not 25 BTC. This stage has already passed. By the way, in the beginning of Bitcoin the miners received 50 BTC per block.

innate · « **Reply #8 on:** February 27, 2018, 07:05:51 AM »

nice post! Finally i can found this

MaRiNA_098 · « **Reply #9 on:** March 22, 2018, 12:26:03 PM »

Interesting post, thanks a lot!

ZigZag · « **Reply #10 on:** March 24, 2018, 09:46:32 AM »

Is not mining BitCoin a waste of energy? I thing, that in future there will be more projects like Nebula Network - decentralized storage cloud. Emission mechanism is tied to their supply and exchange rate is rock stable (separated from BitCoin rate). It's already working on Tether USDT which has stable rate in about 1$ and I thing thats great - investors dont have to worry about rate turbulences. What do you thing?

Bitmann · « **Reply #11 on:** March 25, 2018, 02:25:15 PM »

Thanks!

jitenrajput · « **Reply #12 on:** March 26, 2018, 06:32:27 AM »

Bitcoin mining is a process by which bitcoins are generated. They are given in the form of reward to the miner who solves the puzzle first. It works on the concept of blockchain.

Suppose you are transferring 50 bitcoins to say your friend. When you broadcast the message, all the nodes in the network will verify the transaction. There are specialized programmers called “miners” who solve the puzzle in order to add the transaction to the block. The miner who solves the puzzle first receive reward in the form of bitcoin and transaction fee. In the previous years bitcoin reward was 25 bitcoins per transaction and right now its 12.5. The reward is halved every four years. This process of bitcoin generation is known as bitcoin mining. The transaction verified successfully is then added to the block and bitcoins are transferred to your friend’s account/wallet.

troy28 · « **Reply #13 on:** March 27, 2018, 03:47:45 PM »

Does cloud mining still profitable? as per other mining the return is very slow. you have to invest more to feel your earning, i came accross this hashmonster.io site and they will start this April, im planning to try this one, any two cents? i think they are worth a try because you can sell or stop your contract anytime and resell it so you could have your investment back unlike the old cloud mining where you dont have a choice but wait. i think this hashmonster.io mining is worth a try. Any idea guys?

EllenLiao · « **Reply #14 on:** March 27, 2018, 10:53:45 PM »

As a Newbie, the article explains mining clearly to me. I'd recommend people to check this out.
But in the explanation to five year old child, it's a little confusing.

So basically, miners have two ways to earn cryptocurrency: 1. mine blocks and contributing computer power to blockchain (every miner is solving the same mathematical problem at a time, and the first solver could gain the new releasing cryptocurrency as a reward). 2. process the transaction for users in the blockchain. Transaction fee is existing crypto currency that will pay for miners.

Lmk if there's any concept should be corrected.

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How Bitcoin mining works?