The decentralized nature of Bitcoin means that transactions are sent to a peer-to-peer network and, once issued, must be verified, validated and then recorded in a public transaction database called the Bitcoin Blockchain.
Miners receive transaction fees in the form of the newly created Bitcoin.
So what is in the extraction process?
Computers are used in exchange for Bitcoin to enter new transactions, and although computers are relatively easy to complete the verification process, the process becomes more complex as the capabilities of the computer become more complex with speeds of faster processing.
It is difficult for Bitcoin users around the world to try to agree on a single version of a transaction, which involves “proof of work”.
The Bitcoin protocol requires those who wish to insert additional transaction blocks into the Bitcoin blockchain to prove that the user has used limited resources by using the processing power of the computer used in the vetting process.
Miners compete with all peer-to-peer networks to beat Bitcoine. The faster the processing capacity, the more effort it takes to complete the hardware verification and get both the very popular Bitcoin miners and the transaction fees.
The Bitcoin network has evolved independently to ensure that the time needed to serve block miners is always around 10 minutes.
The processing speed of Bitcoin mining is called the hash rate and the processing power is called the hardware hash capacity.
To make it a bit more technical and to introduce the most commonly used terms from Cryptoworld, a mining process that performs a cryptographic hash function in the header block of the Bitcoin mining toolkit.
For each first retry, the mining software uses a different number as a random element, the number is called a nonce.
After the job is verified until an incorrect random count is obtained, a new block is found, which verifies and supports the peer-to-peer network.
At this point, the miner receives a Bitcoin value, which is currently set at 12.5 coins, although it is reduced to 210,000 blocks. In addition to acquiring Bitcoin, miners also have transaction fees that the user pays in successfully decompressed blocks, which is a much greater incentive for miners as the number of Bitcoins per block decreases. .