To the generation of blocks is known as mining or extraction as an analogy with gold mining. All the miners know the answers on how do you mine bitcoin and compete to be the first to find the solution to the cryptographic problem of their current candidate block, through a Work Test System, solving a problem that requires multiple repetitive attempts.
The concrete aim of the miners is to find a Nonce Correct for the block so that the complete block satisfies a certain condition. This condition is that the double Hash SHA-256 of the block has a certain number of initial zeros.
What is Bitcoin mining?
All traditional monetary systems ask from the government to simply print new amount of money when they need it; as far as Bitcoin is concerned, this is not created, but discovered. So if you’re wondering how do you mine bitcoin, there are bunch of computers around the world trying to “mine” bitcoins competing with each other.
The miners that know how do you mine bitcoin, get the bitcoins as a reward for solving of a mathematical problem. Every 10 minutes, thousands of nodes are competing at the time.
This mathematical challenge is always the same in its process, but the variables are different and can only be solved by trying random numbers without stopping until the result is searched at that time. This generates competition and searches for efficiency by improving computers for this purpose, which they call miners.
How safe and reliable can the information in the chain of blocks be?
When a block of transactions is created, the miners go following a process; grab the information from the block and apply a mathematical formula, making it something different.
This new “piece of information” is shorter and in appearance is a random sequence of numbers and letters called technically “hash” this is stored with the block, at the end of it, last in the chain at that time.
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It is easy to produce a “hash” of a dataset as a block of transactions, but it is virtually impossible to access the data simply with the “hash” as each “hash” is unique;
If there is an attempt to falsify a transaction by changing a block that had already been saved in the string, the block “hash” will change.
So, now you have a clearer picture about how do you mine Bitcoin.