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Let us say you had one legit $20 and one really good photocopy of that same $20. If someone were to attempt to spend both the real bill and the imitation one, someone that took the problem of looking at both of those bills' consecutive numbers would see that they had been exactly the exact same number, and consequently one of them had to be false.
This isn't a great analogy--we will explain in more detail below. .
Once a miner has confirmed 1 MB (megabyte) worthiness of Bitcoin transactions, they are entitled to win the 12.5 BTC. The 1 MB limit was set by Satoshi Nakamoto, and can be an issue of controversy, as some miners think the block size ought to be increased to accommodate more data.
Note that I stated that verifying 1 MB worth of transactions makes a miner eligible to earn Bitcoin--not everyone who verifies transactions will receive paid off.
1MB of transactions can theoretically be as small as 1 transaction (although this is not at all common) or a few thousand. It depends on how much data the transactions consume.
In order to earn Bitcoin, you need to fulfill two conditions. One is a matter of work, one is a matter of luck.
2) You have to be the first miner to arrive at the right answer to a numeric problem. This process is also known as an evidence of work.
The fantastic news: No advanced math or computation is involved. You might have heard that miners are solving challenging mathematical problems--that is not true in any way. What they are actually doing is trying to be the first miner to think of a 64-digit hexadecimal number (a"hash") which is less than or equivalent to the target hash.
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The bad news: Because it is guesswork, you need a good deal of computing power in order to get there first. To mine successfully, you need to have a higher"hash speed," which is quantified in terms of megahashes per second (MH/s), gigahashes per second (GH/s), and terahashes per second (TH/s).
If you want to estimate how much Bitcoin you could mine along with your mining rig's hash rate, the site Cryptocompare offers a very helpful calculator.
Either way a GPU (graphics processing unit) miner or an application-specific integrated circuit (ASIC) miner. These can run from $500 to the tens of thousands. Some miners--particularly Ethereum miners--purchase individual graphics cards (GPUs) as a cheap way to cobble together mining operations. The photo below is a makeshift, home-made mining machine. The graphics cards are those rectangular blocks with whirring circles. Note the sandwich twist-ties holding the pictures cards into the metal rod.
Example: I tell three friends that I'm thinking of a number between 1 and 100, and I write that number on a sheet of paper and seal it in an envelope. My friends don't need to guess the specific number, they just must be the very first person to guess any number that's less than or equal to the number I'm web link thinking of.
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Let's say I am thinking of the number 19. If Friend A guesses 21they lose because 21>19. If Friend B supposes 16 and Friend C supposes 12, then they've both theoretically arrived at viable answers, because 16<19 and 12<19. There is no"extra credit" for Friend B, even though B's answer was closer to the goal answer of 19. .
In Bitcoin conditions, simultaneous answers occur frequently, but at the end of the day there can only be one winning answer. When multiple simultaneous answers are presented that are equal to or less than the target number, the Bitcoin network will determine by a simple majority--51%--that miner to honour. Normally, it is the miner that has done the work, i.e.
The losing block then becomes an"orphan block" .
Now imagine that I pose the"guess what number I'm thinking of" question, however I am not asking just three friends, and I am not thinking of a number between 1 and 100. Instead, I'm asking millions of prospective miners and I'm thinking about a 64-digit hexadecimal number. Now you see that it is going to be extremely hard to guess the right answer.
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The number above has 64 digits. Easy enough to understand so far. As you likely noticed, that number consists not just of numbers, but also letters of the alphabet. Why is that
In order to understand what these letters are doing in the best site center of numbers, let us unpack the term"hexadecimal."
As you knowwe use the"decimal" system, which means it find more is base 10. This in turn means that every digit has 10 chances, 0-9.