All About Free Bitcoin Mining Game
Instead, they went with Solution 2. The resulting currency, called bitcoin money, increased the blocksize to 8 Mb in order to accelerate the verification procedure to allow a performance of around two million transactions every day. In the time of writing, Bitcoin Cash is valued at $545.00 to Bitcoins $6,328.11.
When you hear bitcoin mining, you envisage coins being dug out of the ground. But bitcoin isnt bodily, so why do we call it mining
Since its like gold mining in the bitcoins exist in the protocols design (like the gold exists underground), but they havent been brought out into the light yet (like the golden hasnt been dug up). The bitcoin protocol stipulates that 21 million bitcoins will exist at some point.
They get to perform so as a reward for creating cubes of confirmed transactions and including them in the blockchain.
Backtracking a little, lets discuss nodes. A node is a powerful computer that runs the bitcoin software and helps to keep bitcoin running by participating in the relay of information. Anyone can run a node, you simply download the bitcoin applications (free) and leave a certain port open (the downside is the fact that it consumes energy and storage space the network at time of writing carries up about 145GB).
One node will send information to some nodes that it knows, that will relay the information to nodes they know, etc.. That way it ends up getting around the entire network fairly fast. .
Some nodes are mining nodes (usually referred to as miners). These set outstanding transactions into cubes and add them into the blockchain. How do they do this By solving a complex mathematical puzzle that is part of this bitcoin app, and including the answer in the cube. The mystery that needs solving is to find a number which, when combined with the data in the cube and passed via a hash function, produces a result that's within a certain range.
How do they find this number By guessing at random. The hash function which makes it impossible to forecast what the output will be. So, miners suppose the puzzle number and use the hash function to the combination of that guessed about his number and also the information in the block. The resulting hash has to start with a pre-established number of zeroes.
Whats more, there might be several nonces that make the intended result, or there might be none (in which case the miners keep trying, but with a different block configuration). .
The first miner to get a resulting hash within the desirable range announces its success to the rest of the network. The rest of the miners immediately stop work on that block and start trying to find out the mystery number for your next one. As a reward for its own work, the victorious miner has some new bitcoin. .
In the time of writing, the payoff is 12.5 bitcoins, which in time of writing is worth almost $200,000.
Additionally, the costs of being a mining node are considerable, not only because of the powerful hardware needed (if you have a faster processor than your opponents, you have a better chance of finding the right number before they perform ), but also because of the large amounts of electricity that running these chips consumes. .
And, the number of all bitcoins awarded view it as a reward for solving the mystery will decrease. Its 12.5 now, however, it pits each four decades or so (the next one is expected in redirected here 2020-21). The value of bitcoin relative to cost of electricity and hardware could extend up during the next few years to partially compensate this reduction, but its not certain. .
The problem of the calculation (the necessary number of zeroes at the beginning of the hash string) is adjusted frequently, so that it requires on average about 10 minutes to process a block.
Why 10 minutes That is the amount of time that the bitcoin developers think is necessary for a steady and diminishing flow of new coins until the highest number of 21 million has been attained (expected some time in 2140).