The inventor of Bitcoin who introduced the concept of virtual or digital currency to the outside world- Satoshi Nakamoto – with an aim and focus, to make the exchange of money, online, instead of depending upon the centralized interface or systems like banks. The concept of Bitcoin mining in India is gaining the attention of many business persons and tech savvy peoples.
When government thinks the need of more money they simply print as per of the demand of need where there is centralized system which plays the role of an intermediate such as Bank which keeps track of the record about the transactions, debits, and credits and saves the money from being forged but the case of bitcoin make completely a different definition of currency that is digital currency or we can say virtual currency which has no need to printed instead the money is discovered and earned.
The computers are created with the special configuration of needed important hardware and software, the whole process of Bitcoin mining depends upon the specialized computer specifically created for this purpose in order to protect the system from the harmful cyber attacks and to validate the transaction process reliably.
Each single record of transaction is called Block where each block contains two pieces of information, first is the timestamp that keeps the record or you can say that keep track of the creation and modification time of that block or record and the second it contains a pointer to previously added blog as a link. All the blocks are connected to make peer to peer connection network. The process of mining Bitcoins starts from here.
Each time the transactions take place the block is created as a record and network of the blocks connected to each other becomes a blockchain. The Blockchain acts as a distributed database system where the information of each block record resides and with the entry and addition of new block the updating occurs. Each block is converted into a puzzled mathematically encrypted form.
How Bitcoin miners work?
Bitcoin miners are the spine of bitcoin network. With the use of special software the bitcoin miners to solve the puzzled mathematically encrypted data, a public ledger is created where the information regarding the bitcoin resides like the transaction details in bank passbook, there piece of secret code is kept which is called crypto currency where the whole process of transactions, encryptions, and the database of blocks updating are keeping track by the miners.
The Bitcoin miners are responsible for the secure network and secure process of every bitcoin transactions and as per their work, they are awarded the respective amount of incentive.
- First, when each time the transactions are taking place, the record of it is added to the tally list of Blockchain by the miners.
- After that, the miners check about the legal information of the coin like whether the person who has transacted it have the valid right to do this or whether the respected encrypted code of it is valid or not.
- A proper security check is done. After the approval of permission of taking it further.
- Then miners create a lottery which prevents anyone to easily create or add a new block in the main chain.
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