Skip to main content

Bitcoin Mining


Now you know the concept of bitcoin?

And if don’t? I recommend you to read our previous blog.

Now let’s understand what is bitcoin mining and how the bitcoin is created?

Bitcoin mining is the backbone of the Bitcoin Network. 
Miner are the one which make the network secure and confirm bitcoin transaction.
By mining, you can earn cryptocurrency without having to put down money for it.

Bitcoin mining:
It is a decentralized computational process that serves 2 purposes:
1.Confirmation transaction in trustful manner when enough computational power is devoted to block.
2.Creating a new bitcoin with adding each block.

  



Sound cool right just confirm the transaction and add a block of that transaction into the bitcoin blockchain. But it’s not that easy.  

In order to earn a bitcoin for a miner from verifying the transaction two things have to occur. 

Firstly, they must verify 1-megabyte (M.B) worth of transaction, which can theoretically be as small as 1 transaction but are more often several thousand, depending on how much the transaction store.

Secondly, in order to add a block into the blockchain, miner must solve the complex computational math problem also called the “proof work”.

After the transaction get fully completed network generate a new bitcoin which goes to the miner for work.

Now you would be thinking what’s that complex computational math problem?

Basically, it a 64-digit hexadecimal number called “hash”, which the miner has to create which should be equal or less then the target hash value.

Now, to come up with hash, less or equal to targeted hash it huge amount of computer power which can cost way more than you thing (cost of hardware’s and electricity etc). So that is why majority of mining is done by a huge company.

Every two week or every 2016 blocks difficulty level is adjusted, with goa of keeping the rate of mining constant.

Now, you I have done all the above thing and found out the hash then I would get bitcoin?

The answer is No! Because you to be the first to find the hash out of the million of miner which are present in the network, here luck into action. If your luck and your computer with you then you can get the bitcoin. And the probability of that happening is between 1 in 13 trillion odds.


In my suggestion doing mining using your computer  will be totally waste of all your resource and money.

Labels

Labels:

Comments

Post a Comment

Popular posts from this blog

Secure Network(Week 4)

Network hardening is the process of securing a network by reducing its potential vulnerabilities through configuration changes and taking specific steps.   Implicit deny is a network security concept where anything not explicitly permitted or allowed should be denied. Analyzing logs is the practice of collecting logs from different networks and sometimes client devices on your network, then performing an automated analysis on them. Correlation analysis is the process of taking log data from different systems and matching events across the systems. Flood guards provide protection against Dos or denial of service attacks. EAP-TLS is an authentication type supported by EAP that uses TLS to provide mutual authentication of both the client and the authenticating server.   if you really want to lock down your network, you can implement 802.1x . DHCP Snooping Attack Why WEP Encryption fall apart? A general concept in security and encryption is to never send the plain ...
Post a Comment
Read more

Troubleshooting and debugging

Troubleshooting is the process of identifying, analyzing, and solving problems.  Debugging is the process of identifying, analyzing, and removing bugs in a system. We sometimes use troubleshooting and debugging interchangeably.  But generally, we say troubleshooting when we're fixing problems in the system running the application, and debugging when we're fixing the bugs in the actual code of the application. Debuggers let us follow the code line by line, inspect changes in variable assignments, interrupt the program when a specific condition is met, and more. System calls are the calls that the programs running on our computer make to the running kernel.   A reproduction case is a way to verify if the problem is present or not. Where to check for log file in OS? On Linux , you'd read system logs like /var/log/syslog and user-specific logs like the .xsession-errors file located in the user's home directory. On MacOs , on top of the system logs, you'd go through...
Post a Comment
Read more

Authentication Authorization Accounting(week 3)

Identification is the idea of describing an entity uniquely. Biometric authentication is the process of using unique physiological characteristics of an individual to identify them. C.R.L(Certificate revocation list) :This is a signed list published by the CA which defines certificates that have been explicitly revoked. Lightweight Directory Access Protocol(LDAP): LDAP is an open industry-standard protocol for accessing and maintaining directory services. Authentication is related to verifying the identity a user, authorization pertains to describing what the user account has access to or doesn't have access to. An access control list or ACL , is a way of defining permissions or authorizations for objects.  RADIUS or Remote Authentication Dial-In User Service , is a protocol that provides AAA services for users on a network.It's a very common protocol used to manage access to internal networks, WiFi networks, email services and VPN services. when a client wants to access a r...
Post a Comment
Read more