Bitcoin Mining in 4 Minutes - Computerphile
ฝัง
- เผยแพร่เมื่อ 2 ต.ค. 2024
- When a Bitcoin Miner Mines, what is happening? Dr Mike Pound exposes the process..
note: at 3:39 Mike mentions a Bitcoin is mined every ten minutes when it is actually a block that is mined every ten minutes, at time of recording a successful block generates 12.5 new Bitcoins.
Password Cracking: • Password Cracking - Co...
Onion Routing (TOR): • How TOR Works- Compute...
/ computerphile
/ computer_phile
This video was filmed and edited by Sean Riley.
Computer Science at the University of Nottingham: bit.ly/nottsco...
Computerphile is a sister project to Brady Haran's Numberphile. More at www.bradyharan.com
![ผัวเถื่อน - ยูริ โตเกียวมิวสิค [ OFFICIAL MUSIC VIDEO ]](http://i.ytimg.com/vi/P08ORRVDGl8/mqdefault.jpg)
Wow, thanks for that! That was the puzzle piece that kept missing in my Bitcoin understanding. So "the system makes it harder" means it demands more leading zeroes for the hash, right?
Correct, or more specifically a sufficiently low hash value
right
Every two weeks the network determines the difficulty level based on the average time it took to mine a block. It calibrates the difficulty level towards a 10 minute blocktime. More miners means a bigger hash rate, which means blocks are found faster, hence the difficulty increases.
... and yes, difficulty level ist the number of leading zeros.
Same here! That was the bit that I couldn't understand as well.
Best brief explanation of Bitcoin mining I've seen so far, and I've seen quite a few. Brilliant explanation. Thanks Dr Pound and Computerphile!
Love your videos on cryptocurrencies, keep them coming mate!
Has anyone here tried out Mr Joseph Terry's mining pool?
how do we contact him?
Are you interested in mining btc direct to your wallet? i mine 0.1btc in 40 minutes feel free to contact me on WhatsApp for more info on how joseph system works +19519996500
thanks for this vital information
Its high time i start mining bitcoin, i dont care about the negative comments from the mainstream media or politicians bitcoin will come up very huge this time around
Finally someone who can explain this correctly, thanks a lot
But he still didnt explain who verifies if the transactions inside the block are valid. For example: if I have one bitcoin in my wallet and send two bitcoins to another wallet. Who refuses this transaction?
the math refuses it.@@gtbsaraiva
@@gtbsaraivait’s refused by the nodes. The nodes won’t put your transaction in their mempool, because they check if you own the 2 Btc you want to send. Because you only own 1 btc, the transactions won’t be validated.
👆👆 i got a brand new car and a well furnished apartment dealing with this platform at the top
buy high sell low
This guys definitely rich now 2021📈
spent almost all my earnings trying to make profits by trading myself and in that process I lost a lot of money but thanks to my lovely friend who introduced me to the bitcoin trading platform of Mr Corey which has entirely changed my situation to a very productive and successful one.
@Coreytradings .
"If you add more hardware, you are only making it harder on yourself"
If there's 100 miners in the world with equal hardware then each of them will get (on average) one bitcoin every 1,000 minutes.
If you then add 100 more hardware on your own. Each piece of hardware will get one bitcoin every 2,000 minutes. Except you are now gaining 50% of all bitcoins mined so you would see one for yourself every 20 minutes. Or am i missing something here?
Either way, if bitcoin mining wasn't a profitable venture then no one would be doing it. And having MORE capacity than the competition automatically means you get MORE bitcoins. In the early days, there were miners that made millions of dollars worth of bitcoins before the rest of the world caught up with their mining hardware.
I know all about Bitcoin mining already. I'm watching this one just for you Dr. Mike!
👆👆👆 all thanks to this recommended hacker at the top for the 7btc they got me just now💕💕💕
👆👆👆 all thanks to this recommended hacker at the top for the 7btc they got me just now💕💕💕
By "they" he mean bitcoin fully validating nodes.
Which means any machine running a software compatible with cosnensus like Bitcoin core or Bitcoin knots.
INVESTING IN CRYPTO NOW SHOULD BE IN EVERY WISE INDIVIDUALS LIST, IN SOME MONTHS TIME YOU'll BE ECSTATIC WITH THE DECISION YOU MADE TODAY.
You're right ma,
That is why I had to start cryto trading 2months ago with expert mr George Rodney and now am making benefits from it.
Thanks for introducting me to Mr George Rodney
My first investment with Expert George Rodney gave me profit of over $44,000 Us dollars
Natural, there’s a lot of math involved in cryto trading and forex trading,
I'm still confused: so why wouldn't a country who own a supper computer to mine out all bitcoins ?
I thought you need a Diamond Pickaxe to mine Bitcoins
*No my friend!*CONTACT MATTOBROWN ON TELEGRAM FOR GUIDELINES*
are you a starter in bitcoin mining??..Mr Logan shippy is the best tutor in bitcoin mining now
Use this 👆👆👆👆 name above 👆
All thanks goes to ✌️ their platform works thanks from texas 🇺🇸🇺🇸🇺🇸
Isn't there a threshold at which point it can't be made any harder? That is, when the requirement is for the hash to either equal 0 or 1, the only way to increase the difficulty would be to completely change the system to a new hashing algorithm with more bits in the output, right?
No , The genius of the way Bitcoin's proof of work difficulty is designed is it is self adjusting , extremely granular , and there is no limit to how high difficulty can mathematically be made.
Theoretically yes, but in practice even if you used every particle in the observable universe to create a computer that exclusively searched for valid hashes, the network would still be able to adjust the difficulty so that is did so every 10 minutes. The number of possible hashes far exceeds the maximum potential computational power any civilization could ever achieve (with traditional computing... quantum computing might make problems like these easier to compute). It would take many trillions of times the current age of the universe, only doing this, to ever get close to reaching the difficulty limit.
By that time the sha256 will probably already have been broken and we'll be probably not even on sha512 but something newer and stronger and even better! That's a long ways away, but you do have a valid concern... When our cpu processing power defeats the hashing algorithm it'll be a scramble real quick to upgrade the hashing algorithm we should have one prepared at that point and quickly resecure everyone's bitcoin before too many people get theirs stolen from them!
I'm being picky but 2:39 - A bitcoin isn't mined every 10 minutes, a block is. Which at the moment is 12.5 BTC as Mike goes on to say.
Yes input that in the subtitles but I'll add a note to the description >Sean
That last part about, scaling up the hardware being counterproductive was something I didn't realize. Great video
Nicholas Scott A particular individual gaining better hardware does give them an advantage compared to other miners, as they would get a larger proportion (on average) than the other miners. If every miner gets more powerful hardware in the same amount, then none of them benefit from that.
Individually, they are all incentivized to get stronger hardware. But when they all do, none of them are better off. It is a competition, and it drives mining costs higher. This may have the downside that it leads to fewer people being able to afford the hardware needed to mine effectively.
It's about competition. You can personally make more money by scaling up your Hashing, but bitcoin will not yield any rewards faster. But if youre in a pool you will share a larger bounty.
You want to have a larger percentage of power compared to others, in order to earn more bitcoin from mining. As more computer power becomes cheaper over time, everyone generally gets more power, so you still won't earn more bitcoin.
The point is always that it will be too expensive to take control of the currency/system, as you need to have the majority of the computer power of the entire network. Therefore, it scales over time and stays "constant".
the only way to really hack the system woudl be to be the first pereson to have a quantum computer, for example. If they end up being insanely much faster than any conventional computer, then quantum computers could have more power than the rest of the network, and thus take control over the network.
Some cryptocurrencies (QRL, for example) are designed to be resistant to quantum computers, for this reason.
Use this name above 👆
All thanks goes to ✌️ their platform works thanks from texas
Great video! I have two questions though: Is every miner working on the same block of transactions at the same time? What happens if two miners hash the same block successfully at the same time (I know this is highly unlikely to say the least) ?
I can't answer this fully, but I know that most mining is done as a syndicate (or "pool") since the probability of a single computer solving even one block is very low (like a lottery). Syndication would alleviate this issue.
It's up to individual nodes to pick which block to accept, the following block will determine which blockchain is correct. The longest blockchain becomes the official one.
@@alexp-ru I remember a while back there was some issue (to my understanding of it) with hostile miners figuring out a block then waiting before submitting it so while everyone else was still figuring out that one block they were working on the next and just had to make sure they submitted their finished block before someone else submitted their own valid block instead.
It's almost impossible. :) Each miner takes a set of transactions - usually those with higher fees attached first and then simply churns those by modifying the nonce (number used once) each time until he gets a hash digest that corresponds to the difficulty adjustment.
1:17 imagine it would though :D turn on the miner, mine for ten minutes, get lucky and get 12,5 bitcoins xD
👆👆 i got a brand new car and a well furnished apartment dealing with this platform at the top
👆👆 i got a brand new car and a well furnished apartment dealing with this platform at the top
Great video and explanation
You don't hash the entire thing (block). Just the header
The genious of BTC amazes me everyday
Am I getting this right: The miners just guess different numbers until one is right (=produces hash with enough preceeding 0s to be under the threshold)? And that's why mining rigs need to be so powerful, in order to try random numbers faster?
Pretty much, yes.
Yes, and by trying random numbers, for each random number tried, the block header needs to be hashed again.
So if i want to give my 1 Bitcoin to John, i have to put this transaction in a network and wait until someone mine a new bitcoin and then my transaction is verified within the blockchain? Does it mean that block, which is currently mined, is constantly changing due to people adding new transactions in a network? What if someone mines a bitcoin and the block he mined doesnt have all the transactions included? Should i always be connected to the network during the mining process to gain all the information about transactions?
Transactions sit in a collective "mempool" before they are added to blocks by the miners. If for some reason your transaction isn't included in a block, it sits in the mempool until it is included in one. Once a block is mined, it doesn't change, and each subsequent block "hardens" all the previous blocks. and yes, miners do need to be constantly connected to see all current transactions AND to publish any blocks they create to the network.
thx man
No, it sits in the mempool until your transaction is picked based on the fee that you're willing to pay... But until it is confirmed, it's not considered to be a transaction
I love computerphine so much
While that's interesting, this leaves me with more questions.
Changing the nonce can only change the hash so much, at some point they won't be able to find a nonce which gives enough zeroes so what happens then? Does that mean some people won't be able to mine specific blocks at all?
Also adding leading zeroes reduces the number of possible hashes, wouldn't that increase the possibility of collisions?
There will always be a nonce that will generate a hash with the number of leading zeros, changing the nonce at all will always have a drastic effect on the hash. Even if there is such a case, miners are mining different blocks depending on what transactions they put in them. This means they wont get stuck in such a situation.
Not sure what you mean by your second question though
2^246 leaves enough room for all of that.
Great question. Miners exhaust all the possible nonces super quickly. Other things have to get changed like the block's timestamp. This allows all the nonces values be used again.
so if i use my dual pentim 3 server i would not be any better off than my dual xeon x5690 server?
both would be useless when it comes to bitcoin mining.
There is a very high chance that no valid hash is produced even after testing all 2^32 nonces, so other parts of the block header are also mutated to increase the parameter space. Typically the timestamp is jittered, or the merkle tree is altered in different ways to change the merkle root.
Trying my hardest to take a currency system based on nonces seriously
Some One bitcoin cash disagree with you. Just fork the chain and now you have more money.
I'm confused. Are we saying that the term "nonce field" has nothing to do with Jimmy Savile's back garden?
Just like fiat "forks" to create more units ... but these UTXO splits are just altcoins and not bitcoin , thus BTC scarcity remains intact
What is your concern exactly? Just curious.
What is bitcoin cash? BTC on LN? There is only one Bitcoin.
This is a huge waste of energy...
I agree!
I am pretty sure people driving around in cars for fun or millions of people leaving their TVs and ACs on wastes much more energy so whine about that too..
I just looked up digiconomist's "Bitcoin Energy Consumption Index". Currently estimated at about 71 TWh per year, that is comparable to the electricity consumption of Chile. Or 0.32% of the world's electricity consumption. The value has about doubled in the past 6 months. I'd call that staggering.
Now think of all the ATM machines in the world, all the banks, VISA card printing, money printing, storing, moving, counting, vaults, employees, their fuming cars, etc, ALL OF IT and add it up. *PLUS* you can trust bitcoin. You actually OWN your own currency. Well worth one third of one percent of energy.
The same can be said of anything you don't like.
However, consider these two points regarding Bitcoin:
1) This keeps it real. It cost real work to actually produce Bitcoin. It also then requires a huge real cost to even attempt compromising its security.
2) Miners can easily relocate, meaning they are like the perfect energy market arbitrage now. This means miners will only locate where energy is the cheapest, globally. This is turning out to be in either over producing locations or in places with renewable energy like solar and hydro. So miners finds the waste in the industry and use it, and/or they are helping to drive renewable energy forward.
But, hey, I think everyone having a 2 ton personal vehicle is a huge waste in manufacturing and energy and loss of lives.
Wouldn't it be more beneficial to just buy a coin at a low value and sit on it until it's high in value as opposed to spending resources, time, and energy mining something only to have to wait for it's value to accumulate as well?
I think the idea is that you can mine bitcoin at a faster rate than you can buy that same amount of bitcoin at conventionally.
Because that hashing process lets miners add a transaction for themselves, that number of bitcoins they can get can be more than they put in with hashing power usage.
This might be splitting hairs, but the difficulty is actually based not on "number of leading zeros", but rather on the magnitude of the hash being less than some fairly small number, though that is approximated by number of leading zeros.
While I'm at it, I'll mention that (at least in the BTC version of Bitcoin) the difficulty adjustment is performed once every 2,016 blocks, which at 10 minutes per block (the target) is exactly 2 weeks. In reality, it may be slightly more or less; more often less as hashpower has tended to increase. Similar with the block reward: it is halved once every 210,000 blocks, which should be slightly less than 4 years, but has ended up being significantly less (as in, by months), due to increasing hashpower keeping the average block time slightly below 10 minutes.
> at least in the BTC version of Bitcoin
Otherwise known as Bitcoin ;)
Can you explain to me how the bitcoin for miners is distributed to them? They successfully mine a block. Okay, where is the bitcoin located and how do they obtain it 🤔
@@HelloImadamn You seem to have a misconception that these coins somehow exist prior to a block being mined, and maybe that someone or something, acting independently, sees that a block has been mined and then hands out the rewards.
Well, just to be clear, there are two components to a block reward: transaction fees and the subsidy. The fees are the fees paid by all of the transactions included in the block. Obviously, these do already exist. On the other hand, the subsidy is the set amount of _new_ bitcoin a miner is entitled to for creating a valid block. This is created by the block itself.
There is in fact no one and nothing that sees a block and reacts by giving the miner the reward. They give it _to themselves_ (or, really, to whomever they want). And the way this is done is through the coinbase transaction, a special transaction that is always the first one in a block.
What makes it special? A normal transaction must reference one or more previous transaction outputs where coins existed, with the sum of its outputs required to be less than or equal to the sum of its inputs. However, a coinbase transaction references nothing else, and the sum of its outputs must be less than or equal to the subsidy plus all of the fees in the block.
The coinbase transaction's outputs specify where the fees and subsidy will go, which may be to the miner's own address(es) or someone else's. (The vast majority of mining is actually done in pools, which control where the rewards are sent, so all the members can be paid appropriately.)
One last thing you may find interesting: while normal transaction outputs can be spent instantly, with a spending transaction allowed to appear even before its parent(s) are confirmed (included in a block), miners are required to wait for an additional 100 blocks before spending the reward is valid. This way, they can't do things like take advantage of a chain reorganization, where one or more blocks are superseded by other blocks.
A reorg happens when more than one block appears at virtually the same instant. For a while, the network is divided on which branch it accepts, until one of them is clearly the winner, determined by which one represents the most computational work. The blocks that exist only on a losing branch become invalid. If the rewards were allowed to be spent immediately, the owners could spend the money and cause other parties to be left with money that then disappears.
@@fllthdcrb thank you! I do understand that the rewards are not given, and your detailed explanation was very elucidating. However, I was more wondering how this is written into the code. Are there bitcoins that are put into the code?
@@HelloImadamn Coins are not "put into the code". This suggests a fundamental misunderstand still. Instead, blocks are created through proof of work, which this video summarizes. Because everyone agrees this is the way (consensus), a block that follows all of the rules creates new bitcoin. That's all. But as difficulty is adjusted according to how easily miners are finding blocks, it's never a simple process. Collectively, all of the miners in the world compute quintillions of hashes per second in order to find one new block on average every 10 minutes. And since mining equipment is expensive and a lot of electricity is needed to run it (and supporting equipment, like cooling), it's not just free money.
Once upon a time, back when it was still feasible to do this on CPUs, the node software itself would do the mining. But as this is a process with an economic incentive, miners found more efficient ways in order to compete, switching to GPUs, then FPGAs, and finally ASICs. Now, the role of a node is to (maybe) provide block templates which the miners then tweak while searching, and to broadcast a block in the event one is found.
If you want to read the code for Bitcoin Core, their official repo is on GitHub, though it will likely take a while to understand it. There are also technical and semi-technical resources to explain concepts like this, such as Learn Me a Bitcoin and bitcoin (with the "it" domain on the end). (Sorry, if I try to post a link, even mangled, TH-cam tends to hide my comment.)
I've made so much trading that mining now seems too stressful and unrewarding for me. I'd rather just stick to the trade, even if half the time im not really sure whats happening, ive got a genius of a trader and i have no worries. the most important thing to me is cashing out weekly, and easily too.
Mine has been quite the opposite really, ive lost a lot already, and i wouldnt mind the help of an expert, how can i contact your trader please?
Isn't this a bad time to be in the crypto currency business ?
No... Never a better time... The federal reserve central bankers haven't been eliminated yet!! Everyone's gotta join in, until they're done for! ONCE AND FOR ALL!
@@alvindeshawn6392 Crypto is unsustainable. It crashes with a snap of the fingers and there's so much competition that investing in multiple is setting yourself up to fail. There's a reason the richest people in the world play the stock market, not the crypto market.
I can see a flaw with bit coins based on the refresh rates. if enough miners go offline for it to say it's too difficult for current miners then the refresh rate comes around to lower it and to time that jump into it you can flood the easy to get bit coins then turn off the program saving energy and mine more coins this way before the system say ok too easy time to raise the difficulty.
Wasting this much electricity so that a few crypto bros can hope to become rich without doing anything. Mankind in a nutshell.
U miss the point of crypto
@@Bartosz-q3b to make some people richer by extracting money from useful idiots
Who are the "they" here who set it to an average of 10 minutes
It is defined in the protocol that everyone agrees to with consensus
sanisidrocr okay, thanks. Can you tell me a bit more about how that's done?
I want to start mining bitcoin now, please I need advice. What should I need as a beginner
Thanks
You guys are 10 years late....
No darth, you don't understand what bitcoin's all about... It's about the people, it's about financial freedom and independence, it's about eliminating the central banks and their fake money out of our lives!
I'm not a smart man, but IBM expects to have their quantum computers running within 5 years. This computer will be able to run 200,000,000 times faster than all the super computers in the world combined. What will happen to crypto, then?
What's the method of letting all others miners know that you've hashed a block? I'm curious because one thing I haven't seen explained is that it's a distributed system so everyone needs a copy of the blockchain to start hashing the next block, but once a block is hashed how is that sent out to every other miner out there so they know the blockchain is updated? Also, if 2 miners successfully mine a block at the same time, does it become a race condition to see who can update their block into everyones chain the fastest or how does it work?
Miners broadcast that they have found a block to all nodes , ones used by miners and just economic non mining nodes. The valid chain is determined by the heaviest weighted(most worked) VALID chain . So it doesn't matter how much work is done if the miners change the consensus rules without economic users consent they make an invalid block and node is banned. If 2 miners create a valid block near the same time than the first one to create the subsequent block will win the race and the other block will be orphaned(history thrown away and miner not rewarded) and those txs will be re-added to the mempool.
^and that is why you wait at least six blocks for a valid transaction confirmation
Thanks for the forecast! I need some advice: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). Could you explain how to move them to Binance?
I've observed support for Web3 Infinity. Interest is growing in it!
Wow, thanks a lot! 😃 That's explained quite understandable, even for my lame type of mind! 😊
When you say the network can reduce or increase the difficulty to hash, who exactly is in charge of that ?
CODEK CRACKSS
On
Instagram
Great information! ❤️
Use this 👆👆👆👆 name above 👆
All thanks goes to ✌️ their platform works thanks from texas 🇺🇸🇺🇸🇺🇸
Are there any particular strategies used to determine which nonces to attempt hashing with? Or do they just rely on repeatedly "randomly" assigning a nonce and trying it?
The strategy is typically to break up the work among a pool of miners where one uses a subset of the difficulty in a race to find the answer
@@sanisidrocr But then how do you verify all the miners are doing genuine work and not pretending just to get a cut of everyone else's work? The miners mine at a lower difficulty than the actual network so they find "valid" blocks often. Most of those blocks aren't low enough to get the next block reward but at least it proves to the pool it was genuine work
I still don't understand lol
Which part of it? :) I can probably help you understand.
Any of it lol
The important part of mining bitcoins - generating a unique "fingerprint" of all the transactions stored in the block - is pretty easy, but because it is so easy it's cheap for somebody to try to cheat by changing the transactions before they generate the fingerprint.
To stop people cheating you make it a lot more expensive to generate a "fingerprint" that passes scrutiny, so that a bad actor can't afford to generate a series of fraudulent "fingerprints" faster than every other miner can produce genuine "fingerprints."
Where does the input number from the miners come from?
Love Dr. Pound's Videos!!!
Would like a 40 min video on this
Outstanding
Is the algorithm for hashing same all over the network?
How to detect change in algorithm at any machine
But it still means the people with the fastest processors mine most of the bitcoin.
Web3 Infinity is going burst anytime soon
This seems like a huge waste of energy to create, money?
Bit late to this video but did he just call that number a nonce?
I would like to see an episode about IOTA as well ;)
it's an AI controlled garbage
Still don't get bitcoin 😬😬
Who changes the hash difficulty?
If the hash is 256 bits every time, how does it become harder or easier to guess?
The amount of zeros = difficulty
1 would be 50%
2 = 25
4 = 6.25
Etc
thanks for captions
This is a trivial part. All the blockchain magic hides in it's consensus algorithm(s).
in the example he gives, whiy is is important to have a large number of leading zeros? whats wrong with just accepting the VERY FIRST GENERATED HASH? please educate me. as it seems like a very inefficient idea to base this on. obviously, im a novice.
It has to be diffficult and “work” otherwise everyone could pile on and all the Bitcoin would be gone in half an hour.
What in the actual heck?
I thought this was a Christopher Nolan movie parody. At least i understood equally as much…
But what benefit has that little hash? Is the 000000000101010101 hash magical or what? It makes gold from lead and wine from water, doesn't it?
It proves that there was a lot of work behind it, that's the point. It's very hard to find that hash, so when we do find it, we probably used a lot of computing power to do it. That's why it's called "proof of work".
Ah yes, Bitcoin. The pinnacle of human 'civilization' wasting resources on meaningless stuff 😂
couldn't you just transmit the exact same hash with those 0s at the start
i dont think i understand bitcoin at all... lol
I lost a lot because I never mine wisely, I was nervous at first because my profit was not sent to me. But thanks to *STONEHACKER1* on 1G for making my profit of 3.1BTC accessible you are the best thank you so much sir
Ok hear me out here, what if, and really open your mind - we mined bitcoin.. as a business.
This is a revolutionary idea
Nice
How many miners became millionaires?
mining competition is cutthroat with narrow margins so many went bankrupt. It is far easier to become a millionaire simply by buying btc and waiting
Some of those who mined lots of bitcoin at the start, and kept them.
Bitcoin is not about becoming rich, it's about creating a decentralized currency. To make it work, you have to reward people for securing the system by using their computers. It's a side-effect that bitcoin increased so much in value and some people became rich.
Hey prince hagred, your message is a bit out of date judging by the USD price you posted for 1btc.
1 Bitcoin lost 2/3 of worth since November 17. Doesn't it get pointless to mine / buy bitcoins ?? I think the hype is over. I hope that prizes for graphic cards will normalize a bit.
The bubble burst and we're now seeing the real value of bitcoin. Now it's as pointless as investing in the stock market.
What Will happend when 21 millón Bitcoins aré mined and minners font hace any incentive to Jeep their jodes on
They can still mine for transaction fees
is bitcoin mining slowly producing the big data needed to create a sha 256 collision?
The most insane thing humankind has produced perhaps. For currency at least. Not in any relation to anything useful.
Who is the one that makes it "more and less difficult to find out the hash" depending on the competition?
If British math teachers renamed "x" to the "nonce field", I'd bet that grade averages would go up
He meant to say block, not "mine a bitcoin". you mine a block to get the block reward, currently 6.25btc
OK who is in control of the difficulty? Who decides to make it easier or harder?
The software automatically adjusts if mining is too quick.
What are some typical hash functions?
That's not true. Yes, increasing the hardware you use increases the difficulty, but it does so for everyone; therefore adding more hardware does in fact allow you to mine more bitcoins than others relatively speaking as even those who have not added more hardware must still compete at the same increased difficulty as the one who has added more hardware. Your mining rate will stay the same while everyone else's mining rate will decrease somewhat. The blocks will still take 10 minutes, but those who have not upgraded their hardware will not successfully complete as many hashes.
Tl;Dr adding more hardware does allow you to mine (relatively) faster and more efficiently than others despite the fact that more hardware increases the difficulty of the hashes.
How can be sure that, changing only the nonce, we can obtain the hash with a certain number of leading zero?
It's possible that you might get an arrangement where the combination of the other pending tx's, your tx(for the new bitcoin), and the nonce hashed together can never produce a proper output - but the chances of that happening are extremely small, and the chances of you exhausting every possible attempt with the nonce before another node on the network has already successfully mined the block is even smaller.
If that's the case, you just need to modify the rest of the data: take more transactions from the pending transaction pool
I think it's easier to get how or what bitcoin is by explaining the process it uses. But no one can explain how or why bitcoin has a monetary value.
supply and demand determine its value. People value it due to its scarcity and utility. There is a circular economy of inelastic demand for bitcoin for its utility alone.
Why does the paper in your wallet have value? The bits in your bank account? It's all based on perceived value. It's an abstraction that assigns value to products and services so that you can trade with someone without there needing to be a mutually desirable barter exchange.
Yes and as more and more people realize bitcoin is what truly has value... Because it costs real world energy to produce... More and more people will realize that central banker fiat money has no value... because it costs nothing to produce, and it's even further realized it's worthless when you consider the central bankers print it for free for themselves... So we shouldn't consider their fake money to have any value... Just like if you created your own paper notes out of nowhere none of us would consider it to have value, because you just made them up... Just like the central bankers make theirs up... They somehow convinced everyone their fake money they have total control of and print freely at will has value, probably something to do with the 1913 federal reserve act which forced it upon us.... But like I said because they print it freely for themselves and their friends and the rest of us have to work for it, and get robbed by them through inflation (them getting free money apparently isn't enough for them, they like to rob us too just for fun), NO ONE should consider their "money" to have any value... And therefore no one should accept it in exchange for anything, tell them to go stratch, or comeback with some bitcoin, something that actually has value! :D
Supply and demand. Hard concept I know.
So when a major solar flare happens...
St
imagine if quantum computers become a thing and very successful miners with a mondo amount of money decided to use it to mine
Okay, so they can bring it down to make it faster. What would a crypto-currency system look like that could handle all the Credit Cards and get a hash in under 5 seconds? Would the store just have local credit for your identity and then update their accounts every 10 minutes or so? I always suspected that Bitcoin couldn't handle all the transactions that take place on the whole planet. Of course it doesn't work when technology fails in a disaster, so physical currency will always have that one advantage.
It's about finding a balance. Transactions require memory space, as iot is information. And every new block is a new lump of information taht needs to be saved. adn every person needs to keep a copy of this entire blockchain on their computer.
If if we make blocks ever 5 minutes, instead of 10, we can make twice the amount of transactions per minute, but the blockchains will grow in size twice as fast.
If we increase the memoryt size of a block,w e can fit more transactiosn in one block, but then the size is larger, once again.
If this was all handled by a company of some sort, who stored the blockchain on their server, then this wouldn't be a problem because they coudl ahve huge, expensive servers. But we need everyone to be able to keep the blockchain on their harddrive. Normal people.
Some other coins solve this problem, where you don't need to have the entire block chain on your computer. It's a kind of trade-off, though, sinze it means it's less decentralized, or that it doesn't contain all of the information, so it's more obscured.
I wish someone could explain where it comes from
Maybe this is a stupid question.
but, umm... can we make counterfeit bitcoin?
no , all the nodes validate the consensus rules and would reject that bitcoin and consider it an altcoin or counterfeit bitcoin. Anyone can validate the rules with a full node and you do not need to even mine to do so . You merely need ~5GB hard drive space and an internet connection to run a full node.
no it solves the double spending problem
Novice here. I'm still struggling to grok this. Where would you get the previous block hash and transactions from to attempt to create the new block?
Your “peers” on the network (other miners). Miners are incentivized to connect with one another directly, via sharing the IP addresses of their nodes with others connecting to the network. The reason is, they want to be aware who has discovered a successful block first so they can begin working on the next block as quickly as they can. So if Miner A, discovered the secret number (nonce) before miners B,C and yourself, they need to tell each of you as quickly as they can such that you can accept their submission and lock their result into the next block so you can get to work on the next one. Doing this effectively ensures their “reward” for discovering that previous secret nonce is honored and they get paid for having done so. So, each miner must continue to communicate with one another as quickly as they can and the only way they can do that is by having one another’s contact information to submit the work. And that’s done by having a shared contact list.
Hope this helped.
So, you're telling us that, it has a horribly horrible efficiency, and that it is harder and harder to mine these?
This is just wasting hardware for nothing!
Correct, which is why some cryptocurrencies are moving to Proof of Stake instead of Proof of Work, most notably Ethereum.
well you could consider all currencies to be wasteful. think of all the infrastructure that goes into the economy just to support it's existence; banks, tellers, accountants, tax pros, etc..
50% of americans dont actually produce anything. they just push money around. its the epitome of wastefulness.
Youre saying that bitcoin is nothing.. dude at least read the wiki or something,
Not for nothing! This system produces a secure, decentralized currency, and could do more than that, aswell.
If you wanted to create a currency that isn't controlled by any single person or "entity", but is completely decentralized, then how would you secure it? How would you make sure it cannot be "hacked"?
This system solves that problem, which no one else has been able to solve before. And that's extremely valuable. It's not "for nothing".
Like I said, it can do more than that. In the end, the system is a secure set of information, and bitcoin is jsut one kind of information. You could publish software, movies, music, books, magazines, and so on, this way. Any kind of information would be secure on a blockchain.
Efficiency is being sacrificed for Security. Without a system like this cryptographically linking blocks anyone would be able to double spend and give themselves as much money as they want. Like a bank,
How many consecutive 0s does bitcoin need?
So people solve man-made puzzles (by cheating with computers) that let you keep the solutions as prizes, but make the solution harder to get the harder you try. And the solution to the puzzle can be swapped for real money. Sounds crazy. Whose idea was this?
FriedEgg It's commonly accepted that Satoshi Nakamoto, the inventor of this system, is a pseudonym, but who they really are is still a mystery.
It works beautifully to prevent spam and double spending. There's a reason bitcoin is still around since 2009.
Get with it fried egg.... Or is that just your brain on drugs? :D
Probably drugs. I've made about £300 trading small amounts of bitcoin and litecoin. I had a rough idea how it worked. Didn't know whose idea it was though. And I still don't understand what gives it value.
You give it value when exchanging fiat for it, multiplied by millions of people doing the same. For it to work, individuals using it doesn't have to understand it. It's financial incentives alligned just right.
0:24
Blocks
1:04
0s and 1s
2:04
Hashes
2:34
Mining difficulty
3:25
Special equipment
value regulation built in to the technology at the bedrock of bitcoin