Bitcoin mining is a process that involves solving complex mathematical problems in order to secure transactions on the network and create new coins. But what exactly are these mathematical problems, and how do miners go about solving them?
At the core of Bitcoin mining is the concept of proof-of-work, a mechanism that requires miners to find a hash value that meets certain criteria. This hashing process involves taking the data of a block and running it through a cryptographic algorithm to produce a fixed-length string of characters.
Miners compete to find this specific hash value by changing a parameter called a nonce in the block’s header. The first miner to successfully find the correct hash is rewarded with newly minted Bitcoins and transaction fees. This process not only secures the network but also incentivizes miners to participate in maintaining the blockchain.
