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Let's 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 fake one, someone who took the trouble of looking at both of the invoices' consecutive numbers would see that they were exactly the exact same number, and consequently one of them had to be false.
That isn't a perfect analogy--we will explain in more detail below. .
Once a miner has verified 1 MB (megabyte) worth of Bitcoin transactions, they are eligible to win the 12.5 BTC. The 1 MB limit was established by Satoshi Nakamoto, and can be an issue of controversy, as some miners believe the block size should be increased to accommodate more data.
Note that I said that verifying 1 MB worth of transactions makes a miner qualified to earn Bitcoin--not everyone who supports transactions will get paid off.
1MB of transactions can theoretically be as little as 1 transaction (although this is not at all common) or a few thousand. It depends on how much information the transactions take up.
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 must be the first miner to arrive at the right answer to a numeric problem. This practice is also known as a proof of work.
The good news: No advanced math or computation is involved. You may have heard that miners are solving challenging mathematical problems--that's not true in any way. What they are doing is trying to be the first miner to think of a 64-digit hexadecimal number (a"hash") that is less than or equivalent to the target hash.
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The bad news: Because it is guesswork, you need a lot of computing power in order to get there first. To mine , you need to have a high"hash speed," that 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 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--buy individual graphics cards (GPUs) as a low-cost way to cobble together mining operations. The photo below is a makeshift, home-made mining machine. The graphics cards are such rectangular blocks with whirring circles. Note the sandwich twist-ties holding the graphics cards to the straight from the source metal pole.
Case in point I tell three friends that I'm thinking about a number between 1 and 100, and I write that number on a piece of paper and seal it in an envelope. My friends don't need to guess the exact number, they simply must be the very first person to guess any number that is less than or equal to this number I am thinking of.
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Let us say I am thinking about the number 19. If Friend A guesses 21, they shed because 21>19. If Friend B guesses 16 and Friend C supposes 12, then they've both theoretically arrived at workable answers, because 16<19 and 12<19. There is no"extra credit" for Friend B, even though B's answer was closer to the target answer of 19. .
In Bitcoin conditions, simultaneous answers happen frequently, but at the end of the day there can only be one winning answer. When multiple continue reading this simultaneous answers are presented look at this site which can be equivalent to or less than the target number, the Bitcoin network will determine by a simple majority--51%--which miner to honour. Normally, it's the miner that has done the most work, i.e.
The losing block then becomes an"orphan block" .
Now imagine I present the"guess what number I am thinking of" question, but I'm not asking only three friends, and I am not thinking of a number between 1 and 100. Rather, I am asking millions of would-be miners and I am thinking of a 64-digit hexadecimal number. Now you see that it's going to be extremely difficult to guess the right answer.
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The number preceding has 64 digits. Easy enough to understand so far. As you probably noticed, that number consists not only of numbers, but also letters of the alphabet. Why is that
In order to understand what these letters are doing in the center of numbers, let us unpack the word"hexadecimal."
As you knowwe use the"decimal" system, which means it is base 10. This in turn means that each and every digit has 10 possibilities, 0-9.