What is Bitcoin Mining? A Simple Guide For Beginners!
05 January 2021
Bitcoins can be bought in three ways:
- In cryptocurrency exchanges.
- As an exchange for goods.
- By mining.
Mining is nothing but producing more bitcoins by authenticating the transactions.
Example: If A and B perform a transaction, bitcoin miners verify the blocks and complete the process.
Such authentication protocols secure the system. As a reward, bitcoin miners are rewarded with bitcoins.
By doing so, they get rid of any little possibility left for double-spending. It’s the process that ensures people don’t spend the same amount twice for payment (or) transactions.
Mining requires complex computational power in system hardware and electricity support. When miners cannot afford to meet such requirements, they form together as pools and share their devices.
Based on their contribution, in terms of power (or) devices offered, they receive their share of bitcoins. Such a practice is picking up trends of late.