Verifying the bitcoin transactions

In the process by which the bitcoin miners can actually earn bitcoin by verifying the transactions, two of the things have to occur. First, they are required to verify one megabyte (MB) worth of transactions which can be as small as one transaction theoretically but are often several thousand and that depends upon how much data each of the transaction’s stores.

Second, if you want to add a block of transactions to the blockchain then, first miners are required to solve a complicated computational mathematical problem which is also known as ‘proof of work’. What they are trying to do is to come up with a 64- digit hexadecimal number which is known as ‘hash’ and that is less than or equal to the target hash. Usually, the computer of miners spits out hashes at different rates like mega hashes per second (MH/s), Giga hashes per second (GH/s), or Tera hashes per second (TH/s) which depends upon the unit, guessing all of the possible 64-digit numbers till the time they arrive at a particular solution.

bitcoin mining

The level of difficulty of the most recent block as of august 2020 is more than 16 trillion. Thus, that is the chance of any computer to produce a hash that is below the target is 1 in 16 trillion. If we put all this in perspective, then you are about 44,500 times more likely to win the Powerball jackpot with only a single lottery ticket as compared to when you are to pick the correct hash in a single try. Therefore, mining computer systems spit out lots of hash possibilities. Also, bitcoin mining needs a lot of energy utilization and complicated computing operations as well. in case the computational power is taken off from the network then the difficulty adjusts downward in order to make mining easier.