Quote from: newinbtc on November 27, 2017, 01:18:10 PM

What is Bitcoin mining?
Bitcoin mining requires a computer and a special program. Miners will use this program and a lot of computer resources to compete with other miners in solving complicated mathematical problems. About every ten minutes, they will try to solve a block that has the latest transaction data in it, using cryptographic hash functions.

What are Hash Functions?

A cryptographic hash function is an essentially one-way encryption without a key. It takes an input and returns a seemingly random, but fixed length hash value.
For example, if you use Movable Types SHA-256 Cryptographic Hash Algorithm:

Message: How does mining work?
Hash Value: 46550fef 26f87ddd 5e15407f 45a0b8d2 9513291c 4e0f0acc 24a974de 907a1569

If you change even one letter of the original input, a completely different hash value will be returned. This randomness makes it impossible to predict what the output will be.

Who Are Bitcoin Miners?

Initially, bitcoin miners were just cryptography enthusiasts. People who were interested in the project and used their spare computer power to validate the blockchain so that they could be rewarded with bitcoin. As the value of bitcoin has gone up, more people have seen mining as a potential business, investing in warehouses and hardware to mine as many bitcoin as possible.
These warehouses are generally set up in areas with low electricity prices, to further reduce their costs. With these economies of scale, it has made it more difficult for hobbyists to profit from Bitcoin mining, although there are still many who do it for fun.

very broad answer, thank you, I did not understand mining completely before I read the article.

wihrn

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