Cryptocurrency is considered as one of the major inventions of the 21st century and Bitcoin is the most valuable cryptocurrency in the world. In this guide, we will tell you what is Bitcoin Mining and how it works. Let’s get into it.
What is Bitcoin Mining?
Bitcoin Mining is basically the backbone of the whole network of Bitcoin. Bitcoin Mining is done using specialized Mining Equipment. The people who do the mining are known as “Nodes” and there are hundreds of nodes around the world.
How Does Bitcoin Mining Work?
Bitcoin Mining is a complex process and there are three major functionalities of this work.
1. Confirming the transactions
2. Issuing new bitcoins
The primary goal of the mining is to confirm the bitcoin transactions. There are hundreds of Bitcoin Miners around the world who regularly confirm the bitcoin transactions. To confirm the transactions, bitcoin miners use the special hardware to solve the mathematical puzzle known as “Proof-of-Work”. Whoever solves this puzzle first, his block adds to the blockchain and the transactions approve.
Now here comes the second purpose of mining. Bitcoin Miners get the bitcoins as a reward whenever their block adds to the blockchain. In this