BLOCKCHAIN CRYPTO MINING
What is crypto mining?
You may have overheard the word mining used in sense of cryptocurrencies, but it isn’t quite clear what it implies.
The expression “crypto mining” refers to the process of obtaining cryptocurrency by the use of computers to solve cryptographic equations. Validating data blocks and connecting transaction information to a ledger is the part of this method.
Cryptocurrency mining, in a more technological context, is a transactional method that uses machines and cryptographic processes. It solve complex functions and record data to a blockchain. In reality, there are whole networks of devices engage in crypto mining that use blockchains to hold shared records.
The method of keeping blockchain data in check in the crypto environment entails hard work (which is performed by computers). It ends in a gradual accumulation of capital, similar to mineral mining.
Anyone can become a miner, but not everyone cuts out for it. About 70% of Bitcoin mining takes place in China. Here the cost of energy is so low that operating mining machines are highly lucrative.
How does it work?
A miner is a network node that gathers and organizes transactions into blocks. Any time a transaction occurs, all network nodes receive it and check its validity. The miner nodes then collect these transactions from the memory pool. Nodes then begin putting them together into a block (candidate block).
The first step in mining a block is to hash each transaction from the memory pool separately. But ,before doing so, the miner node attaches a transaction in which they give themselves the mining incentive (block reward). The Coinbase transaction is the first transaction in a new block and is known as the Coinbase transaction.
Following the hashing of each transaction, the hashes are arranged into a Merkle Tree (or hash tree), which is created by grouping transaction hashes into pairs and then hashing them.
The block’s header then fills with the root hash, the previous block’s hash, and a random number named nonce. After that, the block header hashed, yielding an output dependent on certain elements (root hash, previous block’s hash, and nonce), as well as a few other parameters. The block hash is the product, and it will be used as the identifier for the newly created block (candidate block).
The output (block hash) must be less than a certain protocol-defined target value in order to consider it true. To put it another way, the block hash must begin with a certain number of zeros.
Before one of the network miners generates a correct block hash, miners must repeatedly hash the block header by iterating over the nonce. When a correct hash detects, the block broadcasts to the network by the creator node.