Bitcoin mining could be defined as a process of record-keeping, done through the use of computer processing power to add a transaction into a public distributed ledger known as a blockchain where records of every Bitcoin transaction are held. It is one of the major methods to generate a bitcoin in the crypto market.
What is Blockchain and How does it Work?
A blockchain as the name suggests is a chain of blocks, which are lists of bitcoin transactions made through a period of time. Generally, bitcoin transaction generates a block, which is later processed by bitcoin miners via applying the complex mathematical formula on the information contained under a block.
A hash does not necessarily contain the information from the block, it might also include other data, and in case of bitcoin mining, it usually stores hash of the previous block in the blockchain. Once a hash is generated, it further leads to the confirmation or identification of a bitcoin transaction in a blockchain; thus, leads to generating a bitcoin for the miner.
Generally, generating a hash from a block of data is relatively easy for computers and a bitcoin miner can generate a hash for thousands of blocks every second.
However, to prevent that, the bitcoin network deliberately makes the process more difficult and painstaking for bitcoin miners to control any potential supply glut. Some of the leading Bitcoin Mining Software