What is Bitcoin Mining? The Complete Guide – Bitcoin Magazine

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What is bitcoin mining?

Bitcoin mining is the pillar that keeps the Bitcoin system upright, functioning, and thriving. It is based on a type of governance mechanism called a distributed proof-of-work (PoW), designed to incentivize participation and facilitate Bitcoin’s network growth, security, and decentralization.

​​Bitcoin issuance is identified as mining because it recalls mining gold and other minerals, even though there’s no digging deep underground or in caves. In short, bitcoin mining can be explained as the process that enters new bitcoin into circulation and adds new transactions to the Bitcoin timechain (also called a blockchain).

These two apparently simple performances are possible due to a robust system of computation operating in conformity with the rigorous Bitcoin protocol and governance to create the solid, decentralized, and innovative monetary system we know today.

This article explains how such a technological and economic structure works while trying to debunk misconceptions around its energy consumption with accurate data and solid reasoning. Don’t forget to scroll through the FAQ section to explore the highlights of Bitcoin mining.



Source link Bitcoin Magazine

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