How is Bitcoin mined? - FOGWHY


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Sunday, February 2, 2020

How is Bitcoin mined?

Curiosity about the origin and method of mining Bitcoin reached its peak during 2017, thanks to the significant increase in its value, and despite recent fluctuations in its price, there is still a great demand for using this virtual currency.

There is one question that comes to everyone's mind when talking about Bitcoin, which is what is the "mining" process that produces these virtual currencies, so we offer the following to answer all your questions:

Bitcoin is created by a mathematical formula, or algorithm, and it is basically a set of computer codes that are digitally signed every time Bitcoin is sent from one owner to another.

New batches of bitcoin are produced every 10 minutes, and supplies are limited, as it started with 50 coins in January 2009, and over time, new batches are produced every 10 minutes.

- The process of producing and launching new money is called "mining", and the number of Bitcoin is limited to 21 million coins only, a number that is expected to be reached by the year 2140, and so far, only about 16.7 million Bitcoins have been produced.

- These coins can be mined by anyone willing to devote their computer power to the production of virtual currencies, and this means that Bitcoin is produced by users by relinquishing the capabilities of computers to verify other users' transactions.

Coins can also be bought and sold on stock exchanges in US dollars and other currencies.

Bitcoin producers use open source software to accomplish tasks, as all transactions can be anonymous.

- All Bitcoin transactions are confirmed. At first, Bitcoin producers confirm the validity of new Bitcoin transactions awaiting to be recorded in a public registry, and after that, a unique ID number, which was generated by the Bitcoin format, must be decoded and the confirmed records added to the known logbook. As "blockchain".

The blockchain preserves the history of every Bitcoin transaction to the public, as the blockchain constitutes the permanent history of every Bitcoin transaction that has ever been made, and in this way it prevents the blockchain from spending the same bitcoin twice.

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