Bitcoin Mining Explained
Bitcoin mining is the process of outsourcing Bitcoin by performing highly complicated Bitcoin calculations on a blockchain network. These calculations involve transfers and transactions done on a blockchain network. In order to ensure that the sheets and ledgers are properly kept in tune with the transactions conducted, a highly sophisticated system is needed to calculate the transactions. The process of carrying out these transactions is what mining essentially entails. In the course of carrying out these transactions, Bitcoins are sometimes outsourced as rewards for keeping the network secure and carrying out these calculations. When this Bitcoin is outsourced, a miner is said to have successfully mined Bitcoin.
How to Mine Bitcoin
Mining a Bitcoin can be done in several ways. Some people mine in a pool of other miners. Some others specialize in cloud mining. Basically, all mining processes are the same, the only difference is in the way resources are plowed in carrying out the process. In cloud mining, a remote data source is used in addition to the individual systems to boost processor and hardware performance. With cloud mining, a miner does not necessarily need so many sophisticated systems. All that is needed is a subscription to the company hosting the cloud and a miner could use the system of the company. Mining in a pool is another way in which mining can be carried out. A group of miners can come together and pool their resources in a collective effort to mine Bitcoin. This way, the chances of getting a Bitcoin mined is higher because the mining would be carried out on several blocks.
Below are simple steps on mining Bitcoin.