Before the era of blockchains, people only know the gold and other commodity mining, and human history reveal that only gold digging makes them rich overnight, Bitcoin in recent days also very similar to the process of mining gold and it also requires luck and effort.
Mining is simple words is to solve the complex mathematical problems in the blockchain world, in this way miners generate new Bitcoins which is the same as the process of extracting gold from the ground in a mining operation. After resolving the puzzle, the transaction and its information packed into the Bitcoin network block for further processing.
In recent years due to Bitcoin popularity, the demand for Bitcoin mining has surged and resulting in the search of those areas where power is cheaper as well as available enough to run the power-hungry rigs. The more power demand is because of the PoW mechanism of Bitcoin which require maximum validators to approve the transaction, in such case if 1,000 miners available in a city, 51% must accept the transaction in order to complete the transaction, in such a situation 51% of the miners must consume the electricity that will create a shortage of power in a specific area.
Bitcoin algorithm and its system automatically adjust the complexity level of the block generation, and the speed of block generation is stabilized is near 10 minutes, when miner validates the transactions the entire block of information must be recorded and packed on the Bitcoin ledger and this block requires security and encryption as well. The miner job is just to solve the mathematical puzzle and then verifying in order to find a suitable random number for the block, after the block successfully created that block will become part of the Bitcoin ledger and must be verified by other miners on the network and this process is referred as a consensus mechanism.
Bitcoin mining is a lucrative business because in such business only you need to invest the powerful hardware and cheap energy resources, in order to obtain enough Bitcoin the machines of the mining must make great efforts, the biggest concerns for miners have always been the computational problems and ensuring block security, but after new Bitcoin generations, the difficulty to resolve the puzzle is increased furthermore. Therefore miners always in search of efficient hardware and looking towards places where electricity is cheaper.
When Bitcoin first introduced miner only need home CPUs to make a large profit, at the beginning of time when Bitcoin first introduced the complexity of the puzzle is not more difficult and the home CPU easily handle the mining process but after some years it is impossible to mine Bitcoin from the home CPU because those systems are unable to handle such process, the home CPU is only designed for handling the multiple tasks at the same time, nowadays if you invest heavily in hardware equipment and power supplies then you can earn most Bitcoin, however, if the Bitcoin is using the proof-of-work mechanisms.
Once the miner successfully added the block and ensure the block is safe and secure the miner is rewarded by the newly created currency which is also Bitcoin, the process of such a rewarding scheme is referred to as the proof of work, in other words for compensation for the miner efforts, whenever the new block will be added by the miner, he will receive the Bitcoin which is called the block reward.
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Source: https://medium.com/cryptocurrencies-ups-and-down/what-is-classic-bitcoin-mining-f1365c20ec80?source=rss——-8—————–cryptocurrency
