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Let's say you had one legit $20 and one quite good photocopy of the same $20. If someone were to attempt to spend both the real bill and the fake one, someone who took the problem of looking at both of the invoices' serial numbers would observe that they were exactly the same number, and consequently one of them had to be fictitious.
That isn't a perfect analogy--we will explain in more detail below. .
Once a miner has confirmed 1 MB (megabyte) worth of Bitcoin transactions, they are eligible to win the 12.5 BTC. The 1 MB limit was established by Satoshi Nakamoto, and is a matter of controversy, as some miners believe the block size should be increased to accommodate more data.
Note that I stated that verifying 1 MB worth of transactions makes a miner eligible to earn Bitcoin--not everyone who supports transactions will receive paid out.
1MB of transactions can theoretically be as small as 1 transaction (though this is not in any way common) or several thousand. It depends on how much data the transactions consume.
In order to earn Bitcoin, you need to fulfill two conditions. One is a matter of work, one is a matter of luck.
2) You must be the first miner to arrive at the right answer to some numeric issue. This process is also known as an evidence of work.
The fantastic news: No advanced math or computation is involved. You might have heard that miners are solving challenging mathematical problems--that is not true in any way. What they are doing is trying to be the first miner to think of a 64-digit hexadecimal number (a"hash") that is less than or equal to the hash.
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The bad news: Because it is guesswork, you need a good deal of computing power in order to get there first. To mine successfully, you need to have a higher"hash speed," which is quantified in terms of megahashes per second (MH/s), gigahashes per second (GH/s), he has a good point and terahashes per second (TH/s).
If you want to estimate just how much Bitcoin you could mine with your mining rig's hash rate, the website Cryptocompare offers a helpful calculator.
Either way a GPU (graphics processing unit) miner or an application-specific integrated circuit (ASIC) miner. These can run from $500 to the tens of thousands. Some miners--especially Ethereum miners--buy individual graphics cards (GPUs) as a cheap way to cobble together mining operations. The photo below is a makeshift, high-tech mining machine. The cards are such rectangular blocks with whirring circles. Note the sandwich twist-ties holding the graphics cards my blog into the metal rod.
Case in point : I tell three friends I'm thinking of a number between 1 and 100, and I write that number on a piece of paper and seal it in an envelope. My friends don't have to guess the exact number, they just must be the very first person to guess any number that is less than or equal to the number I'm thinking of.
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Let us say I am thinking of the number 19. If Friend A guesses 21they lose because 21>19. If Friend More about the author B supposes 16 and Friend C guesses 12, then they have both theoretically arrived at workable answers, because 16<19 and 12<19. There's no"extra credit" for Friend B, even though B's answer was nearer to the goal answer of 19. .
In Bitcoin terms, simultaneous answers happen frequently, but at the end of the day there can only be one winning answer. When multiple simultaneous answers are presented which can be equal to or less than the target number, the Bitcoin network will determine by a simple majority--51%--which miner to honour. Normally, it is the miner who has done the most work, i.e.
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The number above has 64 digits. Easy enough to understand up to now. As you likely noticed, that number consists not just of numbers, but also letters of the alphabet. Why is that
In order to understand what these letters are doing in the middle of numbers, let us unpack the term"hexadecimal."
As you know, we utilize the"decimal" system, which means it is base 10. This in turn means that every digit has 10 chances, 0-9.