Bitcoin Mining is the process through which the Bitcoin transactions will be validated or verified. This could be done by anyone who has processing power for computation (like a computer or dedicated hardware for mining).
Each transaction will have some transaction fee depending upon the transacted amount. Many transactions are put into a block and it is validated by miners. Whoever validates the block first, that miner will get the total fee of all transactions as a reward for mining the block successfully.
Then, that block is added to the Blockchain ledger. This process will continue and blocks will be mined and added to Blockchain.
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| Mining Rigs |
In order to mine a block, a miner has to solve the cryptographic puzzle (finding a hash below the target) and that miner has to be the first one to solve the puzzle. This is known as Proof of Work (PoW).
So, one must possess enormous capacity of computational processing power and must be extremely lucky for successfully mining a BTC Block !
As we know the bitcoins hold a high market value in Cryptocurrency domain, the competition among miners to mine the block is extremely high.
Some facts about mining :
- Dedicated hardware with heavy computation power has been introduced just for the sake of bitcoin mining. These are called as Mining Rigs
- Mining concept is fundamentally based on Cryptography.
- Bitcoin Mining requires extensive computational power and electricity. Majority of the bitcoins are being mined in China.
- As of now, for every 10 minutes, a new block is being mined and added to the bitcoin ledger blockchain.
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