What's up CryptoPeeps? It's your girl Ysa here to deliver your daily dose off Bitcoin news! Today we're going to be diving deeper into the world of Bitcoin mining and how it works So get your pen and papers because this is going to be a little bit tricky
When we talk about mining do you imagine a person looking for Bitcoin in a cave or in the ground? If you do, then you are kind of wrong and kind of right at the same time Similar to where people mine for gold, people who generate Bitcoins are called miners because while gold is hidden inside rocks, bitcoins are hidden inside datablocks While people use pickaxes for gold, the tool of choice for Bitcoin is a special algorithm that its founder designed But, before we go any further, we need to talk about what nodes are Nodes are powerful processors that runs the Bitcoin software
They also help by relaying information The Bitcoin software is free for everyone to download But the drawback is it consumes an insane amount of energy and storage space These nodes relay information of transactions throughout the whole network One node will send information to the other nodes that it knows, who, in turn, will relay the information back to the nodes that they know as well Honestly, it's a bit hard to get but just think of it as gossip, and how gossip spreads like a wildfire
The nodes relay information that way, only it's a lot faster Some nodes are mining codes They group the transactions made into nodes by the blocks, and adds them to the blockchain They do this by solving extremely complicated mathematical puzzles Basically, the puzzle that needs to be solved is finding a number, and pass it through a hash function, produces a result which is within a certain range
And how they get the number in that range? They do it randomly I know I know it's a lot to digest, so let me put it in simpler terms So basically, miners have to a guess a random number called a "nonce" and combine it with the data in the block, and then apply the hash function The resulting hash starts with a set number of zeroes There's really no way of knowing which numbers would work because two consecutive integers will give wildly varying results
They're maybe nonces that work and some of them may not even work at all Since miners usually work in groups called mining pools, they all work on the same block at the same time to speed things up The first miner to solve this wins first place and get rewarded bitcoins And that's all the time that we have for today once more if you guys have any comments or suggestions feel free to leave a comment down below I'd love to hear your thoughts, anything in your mind basically! Don't forget to hit that thumbs up button and subscribe if you want hear more bitcoin news
Once more this is Ysa from WeTheCryptos And I'll see you guys next time! Bye!