What Does Mining Mean?

What Does Mining Mean?

What is Bitcoin Extraction? How to extract bitcoin?

Bitcoin Extraction: If we want to answer this question in simple language or in one or two lines, we should say: Bitcoin mining is a voluntary activity in which volunteers are called miners, processing power. Extractors provide their network to approve network transactions.

Of course the miners do it not for God’s sake, but they are rewarded for it, and that is the bitcoin reward; In other words, when you send your friend bitcoin; Miner helps to validate your transactions and rewards the network.

So there are three main things to do in mining:

Confirm bitcoin transactions
Keeping the bitcoin network secure
Decentralize the production of new bitcoin units

The explanation we gave was simple so you can understand the mining more easily; Here’s a look at bitcoin mining technically.

Bitcoin Mining Technical Review

Maybe when you hear the term “bitcoin mining”; Imagine coins being pulled out of the ground in your mind; But bitcoin is not physical. So why call it mining or mining?

Because bitcoin mining is not philosophically unlike gold mining; As such, bitcoins exist in the design of bitcoin code and protocol; (Such as gold in the mines) but not yet accessible (such as gold not yet extracted).

According to the bitcoin protocol, there will be only 1 million units. Like gold that is scarce and limited.

The more scientific name for mining is Proof Of Work. In fact, the extraction process originated from an algorithm called proof-of-work that someone named Adam Back first used in his anti-spam system called HashCash.

Oct 20, 2020 iMiner Blog
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