Bitcoin mining – the backbone of the Bitcoin network

Bitcoin mining supports the Bitcoin network as miners use their computing power to secure the network alongside confirming Bitcoin transactions.

With no miner on the Bitcoin network, one should know that it will make the network more vulnerable to attack by potential hackers and may lead to dysfunction.

Moreover, one should understand that specialised computers are used for mining Bitcoin, and the role of the miner is to protect the network by using hash rates and confirming every Bitcoin transaction. If you want to know more about Bitcoin mining, then this is a must read.

Therefore, miners have to solve a computational problem created by the Bitcoin algorithm, which enables them to join together a number of blocks to form a blockchain.

For contributing their efforts and hashing powering in securing the bitcoin network, miners are rewarded with newly generated Bitcoins along with transaction fees associated with the block.

So, if you are thinking about beginning mining, you must have necessary mining tools like ASIC processors, mining software, Bitcoin wallet, a Bitcoin exchange, mining pool, cheap source electricity, and much more.

But before you move forward, you need to know how Bitcoin mining works. Moreover, miners who contribute their efforts in confirming the Bitcoin transaction will be awarded Bitcoin and transaction fees associated with a particular block.

There are three main functions and aspects of mining Bitcoin: the issuance of new Bitcoins, verifying transactions, and security of the network. Without further ado, let's jump straight into how Bitcoin mining works. 

Mining Is used for the purpose of generating new Bitcoins 

The central banks issue traditional or fiat currencies such as the euro or dollar. Moreover, the central banks have the power to issue new units of currency at any time they want based on economic conditions.

But Bitcoin is quite different from other forms of currency. Miners are awarded Bitcoins every 10 minutes for contributing their efforts in confirming the Bitcoin transaction. 

Thus, every miner has to generate a hash equal to or close to the issuance rate, a set of codes to ensure that miners cannot alert the entire system or generate new Bitcoins somehow. Miners will have to incorporate their computing power to create new Bitcoins. 

Having the highest mining power will produce more hash rate, which makes it easier for you to process the information faster and solve the mathematical puzzle as soon as possible.

The Bitcoin algorithm allows a block to be mined for 10 minutes only. The difficulty level of the mathematical puzzle will depend upon the number of computing power used for mining Bitcoin. 

Miners verify Bitcoin transactions

Miners will get a set of regarding Bitcoin transactions in a block, and they have to confirm the transaction by solving a complicated puzzle present in each block.

One should know that the transaction will be considered completed and secured once the blockchain algorithm verifies it.

Some of you might wonder why? Well, to keep the platform secure and reliable, miners have to validate the transactions related to Bitcoin, and after confirming the Bitcoin transaction, it will be added to the blockchain. 

Thus, blockchain is a public ledger, which provides everyone with the detail of confirmed Bitcoin transactions.

With such transparency, more and more miners are getting interested in mining Bitcoin, which helps speed up verifying Bitcoin transactions. 

Why miners are necessary for Bitcoin

In simpler terms, miners contribute their effort in securing the Bitcoin network to keep it safe from potential hackers and help in confirming Bitcoin transactions, and in return, they are rewarded with Bitcoins and transaction fees of a specific block. 

Moreover, they make it difficult for hackers to attack, alter or stop the working of the Bitcoin network as more and more miners are present on the network, the more secure the network will be.

In order to reverse or alter the Bitcoin network, hackers will meet the requirement of more than 51% of hashing power, which is quite impossible to achieve. Hence, miners are distributed over the globe to keep the network safe and secure. 

This is how Bitcoin mining works and if you would like further information, please visit BitcoinEra.