Bitcoin is the digital cash which preferred nowadays. It was launched in 2009 by a person named Satoshi Nakamoto. The identity of this person is not known till now. He proposed the system of bitcoin and became anonymous. There are lots of things in this bitcoin platform. Everything in this system is transparent. Nothing is hidden.
Everything is present on its official site. A limited number of bitcoins are present, i.e. 21 million, out of which the users can use only 18 million.
Bitcoin majorly depends on its process of mining. In this process, all the transactions are being approved and verified. It is the process by which all the ledgers are being formed.
Those ledgers are further responsible for verifying the transaction as bitcoin is the discreet ledger, so the ledger forms this way and is sent to every computer involved in this mining process.
Mining Process Begins
This process involves the calculation of the mathematical problems, which further help to verify the transaction. This process is majorly carried out by the people named to be miners as the whole system is being discreet so no single person can get access to these transactions as there come the chances of fraud.
So here, the miners come to help. There are thousands of miners whole over the world.
- A user initiates the transaction, and then it comes to the official site. Here you can get an idea about Bitcoin price in 2021, Many miners are present for the single transaction. Then the decryption takes place to verify the transaction as the transaction is being secured or encrypted by the cryptography. Then the problem is solved, and the user is able to send the transaction to the required person in very little time.
- So in the transaction, the user was charged the transaction fees. This part of the fees is given to the miner as a reward. And the other amount of the fees is used in the formation of the other bitcoin as no one works for free. In the same way, miners work for the bitcoin platform and are rewarded with some of the bitcoins.
as there are thousands of miners present for just a single transaction because of this thing, sometimes more than one user gets engaged in the transaction. And as the transaction completes, the user receives the reward, which is equally distributed among the users.
With the opening of the mining process, there is a chance of getting rich also gets close to the player. Some players want to be rich, but they don’t want to crack the bitcoin problem. They left all the things done in between because it’s not easy to break it. So, one must have to keep trying if they want a significant amount in return.
Difficulty In Mining
As mentioned in the paper given by Satoshi Nakamoto, the mining reward will get halved every four years. And I the beginning, it was 50BTC, and now in 2020, it is just 6.25BTC. So as in the coming years, the mining reward will get decreased by half.
Also, that as the number of miners is increasing then the difficulty of solving the problem by the computer also gets increased. Even this is seen that because of the very high computational use, the computers get blasted. The problems are present in hexadecimal. Sometimes the to be predicted is in between 1 million and 16 million. These kinds of heavy computational powers are used.
Suppose a person wants to start mining today. Here this is observed that there is no benefit of a miner because it begins with a very heavy investment. Even in some countries, the tools are very outdated, it takes time to get the new tools to get imported, and in that meantime, the new tools are invented. In some countries, there is very heavy electricity cost.
From this information, we can see that mining is an exciting process that also requires lots of hard work. The mining process has a significant contribution to the platform of bitcoin as everything relies on the transaction process which is performed by the mining process.
This helps the user to get the transaction to be completed in very little time. So, it is to be said that the platform where the user can even do their transaction immediately, and even many people get employed by the process of mining. Even this platform provides high profits on investment.