What is mining bitcoin reddit

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It seems either explanations are either too simple, saying that miners "solve a difficult math problem" or are too arcane, talking about such-and-such hash function this, algebraically that etc. So hopefully this will be helpful if you were like me and were trying to wrap your head around the concept of mining bitcoins. For all you technical people out there, please bear with me as i will be simplifying some concepts Ok, first, i think the biggest misconception about mining bitcoins is that the analogy about computers solving difficult problems, while correct, is misleading.

Mining is more akin to rolling dice than solving problems.

For the next example, we are going to use a different hash function, the SHA For any given prime number in this case it has to be primewe can find a number the 6 digit resultant output that seems to have nothing to do with it, but feddit be consistently calculated easily. That number of zeroes that the output has to start with is known as the "difficulty. Each one calculates and arrives at the exact same conclusion the difficulty by checking what is mining bitcoin reddit timestamp on the most recent solution it has received, and comparing it with the timestamp on a solution that came solutions before the current one. Transactions are a topic for another day.

To understand mining, one needs to understand what a hash function is. Put simple, a hash function takes an input and creates a seemingly random output, however the output is consistent every time you perform the function bitcin a given input, and it is very difficult to determine an input, given only what is mining bitcoin reddit output.

Mining reddit bitcoin what is would

What i want you to do right now is open up a calculator on your computer. In the calculator, take the square root of 3. You should get 1. Now take the digits from the 5th place after the decimal all the way to the 10th place after the decimal. As you can see, its This is basically a very simple and weak hash function. For any given what is mining bitcoin reddit number in this case it has to be primewe can find a number the 6 digit resultant output that seems to have nothing to do with it, but can be consistently calculated easily.

  • Since no one knows how to take a given output to create a given input with this hash function, we can prove that it took some work to get an output that starts with a 0.
  • Why on earth would anyone give you bitcoins for that?
  • Please do your own legwork before looking for handouts.

If i were to give you the outputwhat would be the input? For the next example, we are go here to use a different hash function, the SHA This is the actual function used for mining bitcoin. Ok now for some hands-on.

Said is reddit mining bitcoin what miners use

For me, it was http: There should be a text box. In that text box type "pay me, joe, 25 bitcoins. You should get f0eb7… as your result. Now, anyone can do that. Why on earth would anyone give you bitcoins for that?

Mining is what reddit bitcoin since its

Well how can we prove that you have done work, and therefore give "scarcity" to the output? We can agree to only accept outputs that start with a zero! Ok so now what i want you to do are change that last digit in your input the and make it aand then recalculate.


Bitcoin Q&A: What is the biggest threat?

Keep going until your output starts with a zero. I got all the way to Now my output is 0ac Scarcity, and therefore, "proof of work".


What is mining bitcoin reddit

Transactions are a topic for another day. Since no one knows how to take a given output to create reddut given input with this hash function, we can prove that it took some work to get an output that starts with a 0. When your computer finally does manage to find a solution, it sends the hash input that it found to other computers, which quickly check the hash output, and if it does, in fact, start with the required number of zeroes, it is relayed to other computers and so mining, so forth, until it is propagated around the entire network. All computers now honor your address with 25 shiny new bitcoins.

Can mining reddit what is bitcoin Why I'll

That number of zeroes that the output click here to start with is known as the "difficulty. You can see the "hash rate" at sites like bitcoincharts. A solution which yields 25 bitcoins to the finder is found approximately every 10 minutes. The difficulty is set by all bitcoin users.

What is mining bitcoin reddit

On an individual basis, not by some consensus each bitcoin user source the difficulty of solutions that they will accept and relay mininh other nodes. Each one calculates and arrives at the exact same conclusion the difficulty by checking the timestamp on the most recent solution it has received, and comparing it with the timestamp on a solution that came solutions before "what is mining bitcoin reddit" current one.

There are minute what is mining bitcoin reddit in 2 weeks The amount of time that has elapsed SHOULD be two weeks, because solutions ought to be coming in about every 10 minutes. If the elapsed time is, say, one week, it means the difficulty is too easy, and solutions are pouring in too fast, redddit the new difficulty will be TWICE that of the previous difficulty so that the next solutions pour in once about every 10 minutes, and solutions will occur over the next 2 week period. And there you have it, predictable scarcity. The one quality that a unit of currency or barter MUST have to make it worth something, or at least a placeholder for something that is worth something.

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4 Comments
  1. What is mining bitcoin reddit
    Kile 10.10.2017 in 20:16

    Charming question

  1. What is mining bitcoin reddit
    Yozshusar 13.10.2017 in 19:10

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  1. What is mining bitcoin reddit
    Faelkree 14.10.2017 in 08:16

    Yes, the answer almost same, as well as at me.

  1. What is mining bitcoin reddit
    Dagal 24.10.2017 in 05:48

    You were visited with excellent idea

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