HOW DOES BITCOIN MINING WORK AS THERE IS NO SOIL TO DIG ON THE INTERNET.
Bitcoin Miners are like the Central Bank of bitcoins. BITCOINS are mined with software called Bitcoin Miners, it sounds funny right? One of the most common points of confusion for new Bitcoiners is the concept of mining. Well there are a lot of technical terms you need to understand before you can understand bitcoin mining but i will try to make this explanation as simple as possible.
BITCOIN MINING is the process by which some users put their computers to work verifying transactions in the bitcoin network. These users are rewarded with new bitcoins when they successfully complete the work of verification. These miners are like the Central Bank of bitcoins because they are the one who release more bitcoins into the economy by distributing the coins they mined by spending it.
The miner’s computer solves very very complex calculations that have the ability to overheat your computer processor. The result of this calculation is called HASH. A hash cannot be reversed. These calculations to confirm transactions that happen on the network is called mining because it slowly makes new currency available at a rate that resembles the rate at which commodities like gold are mined from the ground.
Some Computer Processing Units or external processing unit can perform these computer calculations (HAS HING) faster than others and this speed is rated in HASHRATES e.g. 1H/s means the processor performs one hash in one second 1KH/s means the processor performs 1000 hashes in one second, 1 MH/s means that the processor performs 1,000,000 hashes in one second.
Once again is the hashing term is beginning to cloud your brain and make you feel dizzy?. A hash is the solution to a complex mathematical puzzle solved by a processor to verify transactions that happened on the bitcoin network. Some processors are faster than other processors when it comes to solving the math and this is measured in hash-rates. A higher hash-rate means the processor computes more hashes in less time. These types of processors are better for mining as you will be rewarded with more bitcoins.