Miners compete to solve a complex cryptographic puzzle, and are rewarded with newly-minted Bitcoin. Bitcoin mining. mining. is the process by which blocks of transactions are added to the public blockchain and verified. It’s also the process by which new Bitcoin. Bitcoin.
What happens when bitcoins are mined?
When bitcoins are mined, however, a valuable service is provided to the Bitcoin network: decentralized transaction recordation and validation. Bitcoin relies on miners to record and validate transactions because of a particular problem inherent in any system of digital currency: double spending.
How does bitcoin work?
Every transaction is recorded in an unchangeable blockchain that is copied to every mining machine. Bitcoin doesn’t rely on a central bank to keep records, it’s the miners themselves that keep the records, and they get to keep a share of the transaction fees as well.
What are the benefits of being a coin miner?
Aside from the short-term bitcoin payoff, being a coin miner can give you "voting" power when changes are proposed in the Bitcoin network protocol. In other words, a successful miner has an influence on the decision-making process on such matters as forking.
