What is an Mining?

The logic of transferring and approving transactions, or Proof of Work, is called the mining of Bitcoins .

Proof of work has been verified, but the result of a calculation based on a cryptographic algorithm performed on the data of the transactions performed so far without including the transaction block, which must comply with the rules given by the bitcoin protocol. This calculation should take about 10 minutes for the entire network of miners. If it turns out that the mining takes longer, the protocol automatically reduces the complexity of the calculation. Otherwise, the complexity of the calculation is increased. Since the transaction is considered to be confirmed with sufficient reliability if it is at a depth of 6 blocks, the 10-minute rule ensures a reliable confirmation in about 1 hour. The algorithm also predicts which transactions have a higher priority and which should be included in the transaction blocks on a priority basis. For example, transactions with higher amounts and transactions with bitcoins that have not been traded for a long time have a higher priority. Small, transaction-free transactions can take a long time to be included in transaction blocks.

For this activity, the system automatically rewards a fixed amount of bitcoin . Any of us who have a large enough fleet of machinery with the appropriate hardware can be a miner. The corresponding software is available free of charge on the Internet. However, the complexity of mining increases over time. That is why it is difficult for a sole proprietor to set up a profitable mining system today. If in the past everyone could have mined at home, today a room is full of servers to achieve a profitable result.

Joint mining ( mining side ) is a joint activity of miners during mining, the aim of which is to increase the opportunities for earning new bitcoins by pooling computational resources, which are shared according to agreements. Cloud solutions have also been created for co-mining, which allow people to buy a computing resource from a mining company that will earn it bitcoin .

Video about mining (in English).

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