Who are miners? Everything You Need To Know About Miners

Who are miners? Everything You Need To Know About Miners

Education
November 4, 2017 by Editor's Desk
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Miners can be defined as accountants who record every transaction to the blockchain. The concept is simple, proof of payment is important if you want your payment to be valid. The miners are the ones who keep the record of your payment. Hence they are record keepers who keep the system updated on new payments
bitcoin mining

Miners can be defined as accountants who record every transaction to the blockchain. The concept is simple, proof of payment is important if you want your payment to be valid. The miners are the ones who keep the record of your payment. Hence they are record keepers who keep the system updated on new payments and existing ones.

 How do Blockchain Miners work?

When you issue a payment to someone in bitcoin, you are actually announcing that you want this many bitcoins transferred to another account. Then announcement is made by the payee to the blockchain network.

The nodes in the network make note of this announcement and cross-check the payment with every transactional data on the network. This is done by checking if the user has used the same coin in other transactions at the same time. Hence this process successfully eliminates double-spending. If there are no matches, then the nodes will announce this transfer to the miner network.

Now the miner’s task is to add the transaction to the blockchain. But if all the blockchain miners add the transaction to the blockchain at the same time, there will be, multiple records of the same transaction.

So what miners do is race each other to verify a block. Before they can enter a block, they must solve it. The blocks are encrypted with an encryption code that works on SHA-256 algorithm. This encryption is called a hash. So if you want to solve and add a block you need to solve the encryption by entering the correct key.

The miners actually figure out this key with a pure guess. But they don’t have to do it themselves! The computer’s processing power is used to come up with the answer for the encryption. So the computers come up with a series of different combinations to fit the encryption.

So the more processing power you have, the more will be your chances of cracking a block and adding it.

The first miner to solve the hash or the encryption call adds the block to the existing blockchain. Once the nodes on the network accept the new block, the payment gets confirmed.

Once a block is added to the network, the blockchain miner receives several bitcoins and a small sum as a reward for the time and resources he or she had vested into the mining process. Hence the miners won’t lose motivation for mining as fast as they can for the next transaction.

If mining doesn’t interest you and still you want to earn bitcoin and other crypto’s, the best way is to buy cryptocurrency from any reputable exchange available in your country. Like Swyftx is know in the Australian region, Coinbase is popular amongst US Population and Binance operates almost in every country around the globe.

 

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