What is Bitcoin Mining?
Bitcoin mining is the process where groups of computers compete with each other to order and validate transactions in exchange for earning payment in Bitcoin. These groups of computers are called nodes (synonymous with miners or transaction processors) and they should seek to put as many transactions in a block as they can. Once they have verified, collated and ordered all of the transactions being exchanged around the bitcoin network, these nodes perform proof of work where they run a complicated computer algorithm in a process known as hashing. These nodes compete for the right to extend the blockchain by using computing power on a hash algorithm, running it repeatedly to find a valid solution to a proof of work puzzle. Once a node solves the proof of work puzzle, it then propagates the resulting block that it constructed to as many of the other nodes on the network as fast as possible.Read More