Today in some places in the world Bitcoin is still a faster and cheaper method of transaction between two countries. Hence, the creation of bitcoin as an alternate means of payment. Therefore, Bitcoin technology has helped a lot of retailers. However, this is in view of Bitcoin being a means of payment has made most of their transaction very fast and cheap.
Basically, the most fascinating fact about the Bitcoin technology is that a single person do not get full control over it. However, it is controlled by a network of heavy computers around the world operated by coders.
With that you don’t have to worry about government agencies watching over your money and monitoring every transactions done. Therefore, Bitcoin technology also keeps their users anonymous when making transactions.
Furthermore, with Bitcoin, you’ll never have to reveal or verify your identification. Therefore, this is unlike other normal banking system. All the Bitcoin technology system does when a user submit a transaction request is to verify that the user has all necessary requirements. Also, if the user has the authority to make such transaction.
Bitcoin Technology – What to Know About Bitcoin Mining
The question most people ask about Bitcoin technology is where the currency originates from. Unlike our regular money made in the central bank, Bitcoin is mined. Mining, not in the sense of digging the Earth and breaking rocks, though it is stressful, time consuming and expensive as that. Bitcoin is mined using heavy duty computers to solve complex mathematical puzzles.
After validating series of transactions in Bitcoin technology, adds a block to the blockchain. However, this is to prevents the double spending of a particular Bitcoin. For instance when a transaction is being made, a user might want to duplicate that same Bitcoin and trade with it. Therefore, in the process of the validation of Bitcoin transaction, it notice and stop such actions by the miners.
When a miner finds a valid block, the reward he or she gets is with Bitcoin. The process is not as easy as it sounds. Therefore, to find a valid block, the miner will have to solve a puzzle by guessing a random number.
However, most attempts to guess this number is not always successful. About 0.17% of attempt results to failure. This makes bitcoin mining a very strenuous process and also makes it difficult for Intruders/hackers go back to alter the transaction of a block.
As of today, miners can win about 12.5BTC after verifying the transaction of a block. Also, a block to has a 1MB limitation. Therefore, this is to say, after verifying 1MB of data of bitcoin transaction a miner might be lucky enough to get 12.5BTC. There is no guarantee on the reward, it is 50% chance a miner will get his or her reward after completing the transaction of a block.
Blockchain Technology – Requirements to Mine Bitcoin
You don’t necessarily need to be a miner to be able to mine Bitcoin but you must be willing to sacrifice your time and resources to mine Bitcoin because it is very competitive and time consuming. All you need to mine Bitcoin is
- Constant electricity: You need constant running power supply to effectively run the system.
- Heavy and specialized computers: you need such computers to be able to solve those complex mathematical puzzles. Also, to complete validation of all transactions in a block
- Large data centers: Bitcoin technology operates online, you always need to be online. This is paramount in other to process the data of the validation of transactions.
With these three you will be able to mine Bitcoin all by yourself.