Bitcoin is one of the most well-known cryptocurrencies. Bitcoin can be considered the father of all cryptocurrencies. Bitcoin was announced in 2008 and was launched in 209. It just started with the value of few dollars with a consistent growth with time. Even in starting, the bitcoin reward was about 50 BTC, but there was a criterion that it would be reduced to half after every four years, and now it is about 3.08 BTC. So everyone should get engaged like this trading bot world as this is the future as this is the very fast-growing currency in today’s time. To stay informed about Bitcoin and other cryptocurrency developments, you can visit nftspedia.com your source for the latest trends and news in the digital asset world.
Now here, further, we will be discussing bitcoin mining. However, before discussing bitcoin mining, first, we should know about the blockchain.
BlockChain
All the transactions verified and forwarded to the other user are done with the help of the bitcoin mining. These transactions are being stored in the blockchain. Blockchain also plays a vital role in bitcoin mining as it stores all the information in the form of blocks.
When the transaction takes place, it gets stores in the block. Once the block gets filled up, then there starts the filling of the next block.
The storing of transactions in the next block is done by taking up the last transaction of the last block. This links the two blocks, and there is no confusion, and the record is maintained systematically. This linking of 2 blocks forms the chain between the two blocks, which is known as the blockchain.
Bitcoin Mining
The mining process is being started with a great concept. As if there was a single person or team of persons of a single community, then there might be the problem of fraud. So there was the person’s ideology that it should not be handed over to any group; instead of that, he created the concept of mining.
- In this mining process, various people don’t know each other and work for the same platform. These people come with their computational skills along with their computational power. They verify the transaction of the bitcoin by solving the mathematical problem they need to solve. After the transaction gets solved, the transaction moves on, and the money is forwarded to the following user.
- There is some amount of the transaction charges charged from the customer, and some amount of the charged money enters the blockchain system, and some amount of the bitcoin is being given as a reward to the person. This reward is known as bitcoin reward, and the process for which it has been earned is known as Bitcoin mining.
- This is considered a good platform as this is giving profits to the users who are investing in it and giving employment to the bitcoin miners and giving them rewards.
Mining Pool
In bitcoin mining, sometimes there is more than one user engaged in the transaction process to solve the mathematical problem, so after completing the transaction, the mining reward is being distributed among the users in equal form.
- For example, if the mining reward is 100 BTC and four miners were engaged in the transaction, they are equally rewarded with 25 BTC. This is known as Mining Pool. This is the same as vehicle pooling. 4 people share the same car, and the expenses are shared between them.
- Bitcoin Platform earlier was known to significantly fewer people, but with time it is known by many people, and along with the bitcoin, they get to know about bitcoin mining. So they started to go for mining processes as it provides them employment and that they are their boss, no one is working for them. They are just working for themselves and are earning worth for their living.
Conclusion
In the pandemic situation, as is going on, there are many unemployed people, and even the people who were employed also got unemployed. In that challenging situation for them, they started to use the bitcoin mining processes. They got employed with the wage worth for them. Even they may be earning more money as compared to that of their jobs. This is the kind of job which they can do in their comfort zone very quickly.
