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Let us say you had one legit $20 and one really good photocopy of the same $20. If someone were to attempt to spend both the true bill and the imitation one, someone that took the trouble of looking at both of those bills' consecutive numbers would see that they were the same number, and consequently one of them had to be false.
This isn't a great analogy--we'll explain in more detail below. .
Once a miner has confirmed 1 MB (megabyte) worth of Bitcoin transactions, they are eligible to win the 12.5 BTC. The 1 MB limit was set by Satoshi Nakamoto, and can be a matter of controversy, as some miners think the block size ought to be increased to accommodate more information.
Note that I said that verifying 1 MB value of transactions makes a miner eligible to earn Bitcoin--not everyone who verifies transactions will receive paid out.
1MB of transactions can technically be small as 1 transaction (although this is not in any way common) or a few thousand. It depends on how much data the transactions consume.
In order to earn Bitcoin, you need to meet two conditions. One is a matter of work, one is a matter of luck.
2) You must be the first miner to reach the perfect answer to some numeric issue. This practice is also known as an evidence of work.
The good news: No advanced math or computation is involved. You may have discovered that miners are solving difficult mathematical problems--that's not true in any way. What they are doing is trying to be the first miner to come up with a 64-digit hexadecimal number (a"hash") that is less than or equal to the target hash.
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The bad news: Since it is guesswork, you need a lot of computing power in order to get there first. To mine successfully, you need to have a high"hash speed," which 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 could mine along with your mining rig's hash rate, the website Cryptocompare offers a very helpful calculator.
Either a GPU (graphics processing unit) miner or an application-specific click for more integrated circuit (ASIC) miner. These can run from $500 into the tens of thousands. Some miners--especially Ethereum miners--buy individual page graphics cards (GPUs) as a cheap method to cobble together mining operations. The photograph below is a makeshift, high-tech mining machine. The graphics cards are those rectangular blocks with whirring circles. Note the sandwich twist-ties holding the graphics cards to the metal rod.
Example: I tell three friends I'm thinking about a number between 1 and 100, and that I write that number on a sheet of paper and seal it in an envelope. My friends don't have to guess the exact number, they simply must be the first person to guess any number that is less than or equal to the number I am thinking of.
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Let's say I'm thinking about the number 19. If Friend A guesses 21, they shed because 21>19. If Friend B guesses 16 and Friend C supposes 12, then they've both technically came at viable answers, since 16<19 and 12<19. There is no"extra credit" for Friend B, even though B's answer was closer to the goal answer of 19. .
In Bitcoin terms, simultaneous answers happen frequently, but at the end of the day there can only be one winning answer. When multiple simultaneous answers are presented which can be equivalent to or less than the target number, the Bitcoin network will decide by a simple majority--51%--that miner to honour. Typically, it is the miner that has done the work, i.e.
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The number preceding has 64 digits. Easy enough to understand up to now. As you likely noticed, that number consists not just of numbers, but also letters of the alphabet. Why is that
In order to understand what these letters are doing in the middle of numbers, let's unpack the word"hexadecimal."
As you know, we use the"decimal" system, which means it's base 10. This in turn means that each and every digit has 10 chances, 0-9.