While dealing with traditional currencies, you can get printed notes for exchange objects. But, the world is getting digital, and you need to keep the pace with changing time. How to get Bitcoins the? This is completely a computerized process through which you can get Free BTC by solving mathematical puzzles. This process is called mining.
How Is Bitcoin (BTC) Mining Organized?
Throughout the world, Bitcoins have gained immense popularity. You can send these coins to anyone at any time. But, it is very important to keep records of all these transactions, unless things will be messed up and it will be difficult to understand who have sent money to whom and of what amount. The Bitcoin network collects all data regarding the transaction of a certain period of time, and it is known as ‘block.’ The miners confirm these transactions and maintain a ledger with all these records.
How to Make a Hash of It?
The ledger is practically a long list of blocks, together known as blockchain. This is essential to find any record of any transaction, made at a certain period of time between two Bitcoin addresses. Whenever a new transaction is made, it is instantly added to the blocks, and the blockchain will get only lengthier on the Bitcoin network whenever any transaction takes place. Once you participate in the process, you will be given a copy of the records so that you get to know what is going on.
But, can you be sure about the authentication of the ledger? Though everything is done digitally, you can’t deny the fact that there are chances of tampering the data. Here come the miners to rescue. During the processing of block transaction, miners take part in that. Their task is to gather information from the block and apply a mathematical formula to it to turn it something else. That can be a short and random sequence of letters or numbers. These are known as a hash. Hash is stored at the end of the blockchain while one transaction is made.
Hashes come with interesting features. Making a hash is quite interesting as it is derived from the data collection of the blockchain. While hashes are produced from a large amount of data, each of those is unique. Once you change any one character in the Bitcoin block, the hash will also be changed completely.
Transaction Method in Blockchain
The transaction method in the block is the free Bitcoin generator. To generate the hash, some other data is also used, and these hashes are stored at the end of the block of the blockchain. While generating a hash for a block, the hash of the previous block is used. You can call it as the digital version of the wax seal. This is for additional security as if anyone tries to tamper with hashes; everyone will know that.
If someone tries to fake a transaction by changing a block that is already on the blockchain, the hash of that block will change. If the authenticity of the block is ever checked by someone, the changed hash will definitely be discovered as the previous version will be stored as a record. Identifying the fake block is that much easy.
Again, each hash of each block is inter-related. As the hash of a block is made with the help of its prior ones, any change to a hash will also change the hash of the previous blocks. Thus, the entire chain will be changed and get all wrong about keeping records.
How to Compete for Coins?
So, now you know the ways to seal the blocks with hashes. To mine each block, users need to compete with each other, using the software of the block. Once you become successful of making a hash, you will be rewarded with 25 Bitcoins. Once you are rewarded, the blockchain will be updated, and people on the network will know about it.
Computerized programs are easy to handle and producing a hash of blocks is quite easy. But, there is some problem. As the process of making hash and generating Bitcoin has become so simple, anyone can make myriads of transactions within a minute, and all the Bitcoins will be mined. Therefore, the process must be more complex and difficult.
To ensure more security, the Bitcoin protocol never accepts any old hash. There is a certain consideration before starting hashing. Initially, it must have a certain number of zeroes. Before producing, it is very difficult to know how the hash will look like. Once you make any small entry to the block, the hash will be chained completely.
It is true that miners aren’t allowed to bring changes to the transaction data on the block, but if they want to change the transaction record of themselves, they can change the hash of the transactions. To do this, they take help from a random piece of data, and the process is known as ‘nonce.’
This is associated with the transaction data while generating the hash. ‘Nonce’ is associated with the hash. If the hash doesn’t fit the selected data, one can change the nonce and hash the entire thing once again. Miners need to work hard to find nonces that work for them. Thus, miners get their Bitcoins.