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Let's say you had one legit $20 and one quite good photocopy of the same $20. If someone were to try to spend both the true bill and the imitation one, someone that took the problem of looking at both of the invoices' consecutive numbers would observe that they were the same number, and thus one of them needed to be fictitious.
This isn't a perfect analogy--we'll explain in more detail below. .
Once a miner has confirmed 1 MB (megabyte) worthiness of Bitcoin transactions, they are entitled to win the 12.5 BTC. The 1 MB limit was established by Satoshi Nakamoto, and is a matter of controversy, as some miners believe the block size should be increased to accommodate more information.
Note that I stated that verifying 1 MB worth of transactions makes a miner eligible to earn Bitcoin--not everyone who supports transactions will receive paid off.
1MB of transactions can theoretically be as small as 1 transaction (though this is not at all common) or several thousand. It depends on how much information the transactions consume.
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 reach the right answer to a numeric problem. This process is also known as a proof of work.
The fantastic news: No advanced math or computation is involved. You might have heard that miners are solving difficult mathematical problems--that is not true at all. What they're doing is trying to be the first miner to think of a 64-digit hexadecimal number (a"hash") which is less than or equivalent to the hash.
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The bad news: Because it is guesswork, you need a lot of computing power in order to get there . To mine , you need to have a high"hash rate," that is measured 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 can mine along with your mining rig's hash rate, the site Cryptocompare offers a very helpful calculator.
Either a GPU (graphics processing unit) miner or an application-specific integrated circuit (ASIC) miner. These can run from $500 into the tens of thousands. Some miners--especially Ethereum miners--purchase individual graphics cards (GPUs) as a low-cost method to cobble together mining operations. The photo below is a makeshift, home-made mining machine. The cards are such rectangular cubes with whirring circles. Note the sandwich twist-ties holding the graphics cards into the metal pole.
Example: I tell three friends that I'm thinking of 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 have to guess the exact number, see this site they just 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'm thinking about the number 19. If Friend A guesses 21they shed because 21>19. If Friend B guesses 16 and Friend C guesses 12, then they've both theoretically arrived at workable answers, since 16<19 and 12<19. There's no"extra credit" for Friend B, even though B's answer was nearer to the goal answer of 19. .
In Bitcoin conditions, simultaneous answers happen frequently, but in the end of the day there can only be one winning answer. When multiple simultaneous answers are presented that are equivalent to or less than the target number, the Bitcoin network will determine by a simple majority--51%--which miner to honour. Typically, it is the miner who has done the most work, i.e.
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The number preceding has 64 digits. Easy enough to understand so far. As you probably noticed, that number consists not just of numbers, but also letters of this alphabet. Why is that
In order to understand what these letters are doing in the middle of numbers, let us unpack the word"hexadecimal."
As you know, we utilize the"decimal" system, which means it is base 10. This in turn means that every digit has 10 chances, 0-9.