Electronical Asset creationHere is the part in which we send off the bitcoin.
The actual process of mining is explained on the next page. Mining of bitcoin.
Hitting the “send” button in your Bitcoin Wallet, you basically tell your wallet: “Wallet, send x Bitcoin to address x. Here is x’s Bitcoin address.” The wallet will then create a transaction message containing information about you, the sender (x), the recipient and the amount being sent (in our case, one Bitcoin).
Thus the wallet produces a unique digital signature for this message by mathematically mixing it with my private key. This private key is basically a long string of letters and numbers that act as the “password” for our Bitcoins. Whoever knows ou private key has control of my Bitcoins. After signing the transaction message, the wallet then groups the signature, along with our transaction message, into a small file. This concludes our first step of signing.
Bitcoin – broadcasting.
In the broadcasting step, the wallet starts sending out the file to another computers that hold a copy of the Blockchain the so called nodes. Each receiving node verifies that the file is legit. It’s basically checking our account balance before clearing oour check. When a node receives a file, it keeps it in a holding area called the Mempool. The Mempool, short for memory pool, is a space dedicated for valid but still unconfirmed transactions. Once the transaction message finds its way to the Mempool of the different online nodes on the network, we can say the second step of broadcasting is officially finished.
use a blockexplorer such as blockchain.com
Now we can now move on to the final step – confirming our transaction. Bitcoin Mining where miners group transactions together, meaning they take those files sitting around in the Mempool, group them together and create a block of transactions. There is a limit to how many transactions can be inserted into each block. Therefore, miners will usually pick the transactions that have the highest mining fees attached to them first. Paying more moves money faster.
Miners will then compete with each other in order to get their block into the Blockchain. The mining competition is based on mathematical calculations, and the miner with the most computational power will have the best chance of winning. Once a miner wins the competition and gets his block into the Blockchain, all of the transactions that were in that block will be considered as confirmed. On average, a new block of transactions will be mined, or inserted into the Blockchain, every 10 minutes. Remember this is on average. Sometimes you’ll get 2 blocks confirmed within 1 minute, and sometimes it can take more than an hour.
If a block was mined with your transaction in it, you’ll notice it will now show on the block explorer as having one confirmation. As more and more blocks are added afterward, the confirmation number will grow. Itis suggested to wait for at least 6 blocks before considering a transaction as fully confirmed without any chance of cancellation.
On the next page you get an different view on how bitcoin is seen.
Bitcoin in debth:
BTC and the Mining reward
Ripple vs IBM
Beware of Altcoins
Sending mined coins
Social media & bitcoin
financial freedom opportunities
How to Mine
Or did we catch your attention?