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Let us say you had one legit $20 and one really good photocopy of the same $20. If someone were to try to spend both the real bill and the imitation one, someone who took the trouble of looking at either of the bills' serial numbers would see that they had been the same number, and consequently one of them needed to be fictitious.
This isn't a perfect analogy--we'll explain in more detail below. .
Once a miner has verified 1 MB (megabyte) worthiness of Bitcoin transactions, they are entitled to win the 12.5 BTC. The 1 MB limit was established by Satoshi Nakamoto, and can be a matter of controversy, as some miners believe the block size should be increased to accommodate more information.
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 (although this is not in any way common) or a few 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 a numeric issue. This process is also known as a proof of work.
The good news: No advanced math or computation is involved. You may have discovered 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 come up with a 64-digit hexadecimal number (a"hash") which is less than or equal to the hash.
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The bad news: Because it's guesswork, you need a lot of computing power in order to get there first. To mine successfully, you need to have a higher"hash speed," which is measured in terms of megahashes per second (MH/s), gigahashes per second (GH/s), and terahashes per second (TH/s).
If you want to estimate just how much Bitcoin you could mine along with your mining rig's hash rate, the website Cryptocompare provides a helpful calculator.
Either a GPU (graphics processing unit) miner or an application-specific integrated circuit (ASIC) miner. These can run from $500 into the tens of thousands. Some miners--particularly Ethereum miners--purchase individual graphics cards (GPUs) as a low-cost way to cobble together Recommended Reading mining operations. The photograph below is a makeshift, home-made mining machine. The cards are those rectangular cubes with whirring circles. Note the sandwich twist-ties holding the graphics cards into the metal pole.
ExampleI tell three friends that I'm thinking of a number between 1 and 100, and that I write that number on a piece of paper and seal it in an envelope. My friends don't need to guess the exact number, they just have to be the first person to figure any number that's less than or equal to this number I am thinking of.
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Let's say I am thinking about the number 19. If Friend A guesses 21, they lose because 21>19. If Friend B guesses 16 and Friend C supposes 12, then they have both theoretically arrived at workable answers, since 16<19 and 12<19. There is no"extra credit" for Friend B, click resources even though B's answer was closer to the target answer of 19. .
In Bitcoin terms, simultaneous answers happen frequently, but in 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 decide by a simple majority--51%--which miner to honour. Typically, it's the miner that has done the most work, i.e.
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The number preceding has 64 digits. Easy enough to understand so far. As you probably noticed, that number consists not only of numbers, but also letters of the alphabet. Why is that
In order to understand these letters are doing in the center of numbers, let's unpack the term"hexadecimal."
As you know, we use the"decimal" system, which means it's base 10. This in turn means that every digit has 10 chances, 0-9.