Bitcoin mining

In the previous part of the Bitcoin article, we discussed principles of it. In this article, we are going to explain how to create new bitcoin. When you want to send some bitcoin from your wallet to your friend’s wallet, this transaction information is transmitted to the bitcoin network (sender’s address, the recipient’s address, the amount of bitcoin and other information that we will explain in subsequent articles). All transactions in the queue for approval are stored somewhere in the nodes and miners system, so-called mempool. At this point, each miner chooses a few transactions (how to select this transaction based on several factors, like the amount of the transaction fee) and then puts them into a block and begins to solve a complex mathematical equation. These are, of course, general and simple definitions, and we will explain them more specific in the following articles. The complexity of problem-solving is such that it takes about 10 minutes on average to solve and find the nonce of a block. But sometimes a miner may not be able to solve the problem at 10 minutes, maybe more or less. The miner who can find nonce of the Block earlier than any other miner and informs the rest of the miners and nodes, After reviewing and validating by other members of the network, they place that block in the continuum of the blockchain and begin extracting the next block. In return for finding Nonce Block, Miner will receive some bitcoin as a reward, which it be said that he can mine bitcoin. The number of bitcoins mined per block was initially 50 bitcoin, which, according to the rules in Satoshi Nakamoto’s article, was halved by about 4 years (exactly after every 210,000 blocks) and now the miner’s reward is 12.5 bitcoin. Another issue we mentioned in the previous article was the impossibility of more than 21 million bitcoins in the market. By this description, until 2140 bitcoin can be mined.

Mine blocks in ten minutes

The question you may be asking yourself is what happens if the average time to solve the blocks is more or less than 10 minutes on the median. The bitcoin network is designed to check the average time of block mine every two weeks and adjust the difficulty of the network. For example, if the two-week average block time is more than 10 minutes, the network difficulty will be adjusted to make it easier for mines to set up the time to ten minutes. We hope you enjoyed reading this article and comment on this post below.

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