How Do Bitcoin Miner Work?

In traditional flat money systems, governments generally print more currencies when the requirement increases. But in the case of bitcoin, it is not printed at all. Rather, it is discovered. Computers from around the world ‘mine’ for coins by contending with each other. In addition, they use hardware like antminer s3 for the production. So, here comes the question about how it happens?

People send bitcoins to each other over the network all the time. But, unless someone keeps a record of these transactions, no one will be in a position to know, who has paid what. But, this network of people manage by collecting all the transactions that are made during a particular time period into a list known as ‘block’. It is the job of a bitcoin miner to authenticate those transactions and they can write them into a general ledger to keep track.

Making a hash of it: This general ledger is a long list of block called as the block chain. It can be used for geeting to know about any operations made between any bitcoin addresses at any place of network. As and when a fresh block of transactions is created, it is supplemented to the chain of block, thereby creating an increasingly lengthy list of all transactions that ever took place at the bitcoin network. To ensure that everyone in the network knows what is happening, a constantly updated copy of the block is given to them.

A general ledger has to be trusted as everything is held digitally. However, how to ensure that the block chain stays intact is the question many of them have in their minds. Here comes the miners into the picture. When a block of transaction is created, miners generally put it through the process.

Miners take the information in the block and they apply a mathematical formula to it, which will bring about a sequence of letters and numbers called as hash. This is stored with the block.

This symbol has some interesting properties and it is easy to produce from a collection of data. But, it is highly impossible to work out what the data was just by having a look at the hash. Even though, miners are of the opinion that it is easier to produce a hash from a larger amount of data, each hash is unique. All it takes is the selection of the best bitcoin miner and a professional hardware like antminer s3.

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