Bitcoin Basics – Part One – Mining Basics

by Albert Szmigielski Mining serves different purposes in Bitcoin. Miners verify transactions, by making sure they are valid. Then they include these transaction in a newly created block. This is how the blockchain gets extended, miners add new blocks on top of it. Then there is the securing the blockchain function. The more processing power miners have the more difficult it is for someone to mount an attack against the Bitcoin network. Finding a new block. The terminology around this varies, some people say finding a new block, others refer to it as solving a new block. All the miners compete against each other in finding new blocks. They are motivated by the rewards they get when they do find one

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