With the introduction of Bitcoin back in 2009 by Satoshi Nakamoto, it has attracted a lot of attention including the likes of investors, tech-savvy personals as well as everyday people. But, that doesn’t mean you have to become a professional if you want to know about Bitcoin mining and how exactly it works. That is why we have curated this article with the intent to enlighten our readers with everything to know about bitcoin mining.
What Exactly is Bitcoin?
Before proceeding to Bitcoin mining, it is very important that you have a clear understanding of what is Bitcoin. In Layman’s terms, it is a decentralized digital currency that enables peer-to-peer transfer without the involvement of any intermediaries. Using the technology of Blockchain, anyone around the world can initiate a Bitcoin transfer.
Where can you get Bitcoin? Certainly, you can either purchase them or mine on your own.
Advantages of Bitcoin
There are several benefits that you can reap while using Bitcoin. For starters, as compared to any traditional currency, Bitcoin can be transferred at a faster rate. Being decentralized, you don’t have to pay much on the transaction charges. Keeping utmost secrecy, even the identities of the sender and receiver are kept hidden. And as far as counterfeit transactions are concerned, it is as secure as it can ever get.
What is Bitcoin Mining?
In Layman terms, Bitcoin mining is nothing but verifying the Bitcoin transactions while keeping a record in the public blockchain ledger. The participants within the network need to verify these transactions. It is the miner, who assists with their hardware and computing powers.
So, basically with a proper internet connection along with the required hardware, anyone can become a Bitcoin miner. Often the task is referred to as proof of work that requires solving difficult mathematical puzzles. The proof of work is essential invalidating the work of the miner before they can get paid.
Preventive Measures Against Hacking
One might argue, there are several instances where someone tries to hack the system. Blockchain is almost impenetrable. As the name suggests, it consists of blocks. For easier understanding, let’s arbitrarily take three blocks namely A, B, and C. So, each block comes with its identifier that has its hash value after solving the puzzle.
So, in case someone tampers with the value of Block B, it directly changes the data affecting the hash value. This, in turn, corrupts the chain, delinking Block B. This is how Blockchain makes sure that the entire Bitcoin Transaction Process remains unhackable.