I still don't understand how Bit Mining works.

Blueprint · January 20, 2014

I understand that you mine at blocks, but what are you actually working out?? Who are these calculations being done for??

Thanks,

Blueprint

UnderADyingSun · January 20, 2014

http://en.wikipedia.org/wiki/Cryptocurrency

defunkt · January 20, 2014

You calculate shit and get given money in reward. It's not hard to understand.

megadarkwood · January 20, 2014

https://linustechtips.com/main/topic/64266-ultimate-bitcoin-guide/

Mining is a distributed consensus system that is used to confirm waiting transactions by including them in the block chain. It enforces a chronological order in the block chain, protects the neutrality of the network, and allows different computers to agree on the state of the system. To be confirmed, transactions must be packed in a block that fits very strict cryptographic rules that will be verified by the network. These rules prevent previous blocks from being modified because doing so would invalidate all following blocks. Mining also creates the equivalent of a competitive lottery that prevents any individual from easily adding new blocks consecutively in the block chain. This way, no individuals can control what is included in the block chain or replace parts of the block chain to roll back their own spends.

You calculate special hash algorithms (Bitcoin uses SHA256) and get bitcoins in reward

flexwave · January 20, 2014

I think he mainly wants to know what he's calculating to get the bitcoin. As far as I'm aware you solve Hash codes but I don't know what a hash code is or does or why it needs solving?

beefalo · January 21, 2014

You solve blocks to confirm transactions. Each time bitcoins are transfered they need a certain number of confirmations before the trade is confirmed and that is what the miners are doing. Each time a block is solved, the transaction it corresponds to is permanently recorded in the bitcoin network.

Most people mining don't really understand what they are doing. You are not just being giving money for free for solving random math. You are acting as the infrastructure to keep the network operational. If it was no longer profitable to mine and everyone stopped, coins could no longer be transferred because there wouldn't be anyone to confirm the transaction.