What is Bitcoin Mining? – Myntrepublikken: Cryptocurrency, Bitcoin, Ethereum and Blockchain news
The word mining was coined a long time ago and at that time it was not classified because it meant digging natural resources and using them further for a wide range of work.
But after the development of Bitcoin, it became a new type of mining called ‘crypto mining’ and from this word Bitcoin Mining was born. Still, according to reliable data, the crypto mining concept was first used by the anonymous developer Satoshi Nakamoto.
Satoshi was the one who introduced the concept of Bitcoin mining and demonstrated Bitcoin mining in the Bitcoin Whitepaper, which was published 14 years ago before the launch of Bitcoin.
Proof-of-Work is the consensus mechanism on which Bitcoin is generated. According to Bitcoin’s white paper, it is noted that The proof-of-work involves scanning for a value that, when hashed, for example with SHA-256, begins the hash with several zero bits. The average work required is exponential in the number of zero bits required and can be verified by performing a single hash.
Bitcoin mining uses heavy equipment to solve complicated math problems and verify blockchain transactions. The amount of carbon emissions produced by such activities contributes to the greenhouse effect, leading to an increase in the Earth’s temperature. Cryptocurrencies that use PoW algorithms are the main reason behind this problem.
Cryptocurrency mining produced around 110 million and 170 million tons of carbon pollution globally and 25 million to 50 million tons in the United States alone. The process generates energy by buying it from the power grid or by using computing and mining.
The White Paper of Satoshi also states that the majority decision is represented by the longest chain, which has the largest proof-of-work stake invested in it. If honest nodes control the most CPU power, the honest chain will grow the fastest and outperform all competing chains. To modify a previous block, an attacker must redo the block’s proof-of-work and all the blocks after it and then catch up and pass the work to the honest nodes.
Currently, Bitcoin Mining and its profitability has raised hundreds of questions because BTC mining is considered the father of all other mining because the concept of crypto mining or BTC mining entered the mainstream after the efforts of Satoshi Nakamoto.
BTC’s halving is happening in 2024, which will greatly increase mining difficulty. Now another question remains whether it will escalate prices to levels the experts expect or not. Another point of consideration is whether this proof-of-work asset will remain in play as Ethereum has transitioned its consensus to proof-of-stake.
