Bitcoin Mining

Usman Sheikh

Bitcoin mining is a process used to validate and secure transactions on the Bitcoin network.

Miners use high-powered computers to solve complex mathematical problems, known as hash functions.

Each time a miner successfully solves a problem, they are rewarded with a certain amount of Bitcoin.

The difficulty of the problems being solved adjusts dynamically, so that only one miner can solve a problem every 10 minutes on average.

The miners validate transactions by grouping them into blocks and then solving the hash function for that block.

Once a miner solves the hash function for a block, the block is added to the blockchain, a public ledger of all Bitcoin transactions.

This creates a permanent record of all transactions, ensuring that they cannot be altered or deleted.

Miners also help maintain the security of the Bitcoin network by verifying the validity of new transactions and blocks.

Miners compete with each other to be the first to solve the hash function, as the first miner to do so is rewarded with the newly minted Bitcoin.

The reward for solving a block is currently 6.25 Bitcoin, with the reward halving every 210,000 blocks.

The competition among miners to be the first to solve a block also helps ensure the security of the Bitcoin network.