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What Is Bitcoin Mining?

February 3rd, 2017 | by BTC News
What Is Bitcoin Mining?
Tech
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bitcoin block
by Fortune Conferences

What Is Bitcoin Mining?

If you are wondering from where does Bitcoin come and how does it get into circulation, the answer is that it gets mined into existence. The process of bitcoin mining is responsible for releasing new currency and also for adding transactions to the block chain. This process encompasses, bringing together recent transactions into blocks and trying a puzzle that is difficult to solve. The first person taking place in the puzzle will get the chance to place the next block on the block chain and he can also claim the rewards for the same. The rewards motivate this process and it includes both the transaction fee and the newly released Bitcoin.

Network security: Generally, the process involved in the production of this currency is something that is decentralized. This is because anybody with proper hardware called as bitcoin miner and internet connection can participate in the production process. The security of this network of developers relies on this decentralization factor as the people in the network make decisions on the basis of consensus. If a confusion arises as to whether a block should be added to chain of blocks or not, they will arrive at the decision on the basis of a simple majority consensus. This means that the decision is arrived at if a majority of the population (i.e.) Greater half of the people agree. This shows that if an individual or an organization has half of the network as their support team, there are great chances that they can corrupt the entire chain of block. In short, the security of network of miners depends partly on the level of mining power employed. This purely depends on the incentives received by miners in the form of transaction fee and block reward.

Block reward: Block reward is nothing, but the level of new bitcoin released with every mined block. The reward will get halved once in every four years or for every 210,000 blocks. In the year 2009, it began with 50 bitcoin and now it has become 25 in the year 2014. With this concept of reward, many people are interested in choosing the best bitcoin miner for their production process.

Transaction fee: Even though, people are showing interest on one side, on the other side, the interest is diminishing as well. This is because of the reducing reward, which is almost approaching the zero level. Experts are of the opinion that this reduction in the reward can lead to greater security problem, unless the concept of reward is replaced by transaction fee.

In the process of production, the miners can use the best hardware like the antminer, which will help them to improve their production. Of course, in addition to antminer, they should have a better software program as well.

At bitmainantminer best bitcoin miner hardware equipment available at affordable prices. We sell best quality vitamin antminer s2, Antminer S3 products which are easy to set up, utilizes low power and gives cost effective mining. To know more about antminer visit online.

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