In order to validate transactions miners have to do some work - solve some mathematical problems, and hence use some power and resources. The more people participating the more difficult the mathematical problems and the higher the security, as it requires huge amounts of processing power.
It becomes unprofitable for one individual to spend that much money on the hardware and power need it to run it vs the value gained.
Miners assemble all new transactions appearing into large bundles called blocks, which collectively constitute an authoritative record of all transactions ever made, the blockchain.
In order to make sure there is only one blockchain blocks are really hard to produce.
So instead of just being able to make blocks at will, miners have to produce a cryptographic hash of the block that meets certain criteria, and the only way to find one is to try computing many of them until you get lucky and find one that works. This process is referred to as hashing. The miner that successfully creates a block is rewarded with some freshly created bitcoins.
So instead of just being able to make blocks at will, miners have to produce a cryptographic hash of the block that meets certain criteria, and the only way to find one is to try computing many of them until you get lucky and find one that works. This process is referred to as hashing. The miner that successfully creates a block is rewarded with some freshly created bitcoins.
Every few days, the difficulty of the criteria for the hash is adjusted based on how frequently blocks are appearing, so more competition between miners equals more work needed to find a block. This network difficulty, so called because it is the same for all miners, can be quantified by a number.
Mining pools: by sharing their processing power, miners can find blocks much faster. Pool users earn shares by submitting valid proofs of work, and are then rewarded according to the amount of work they contributed to solving a block.
Mining pools: by sharing their processing power, miners can find blocks much faster. Pool users earn shares by submitting valid proofs of work, and are then rewarded according to the amount of work they contributed to solving a block.
Resources:
Bitcoin core: https://bitcoin.org
The blockchain: https://blockchain.info/
To find bitcoin ATMs around the world: https://coinatmradar.com/
Best Bitcoin Exchange: https://www.binance.com/en
https://bitcoin.org/en/full-node#what-is-a-full-node
An episode on the inside man where Morgan Spurlock buys bitcoins and tries to live one week by it : https://vid.me/gjbm/morgan-makes-cents-out-of-bitcoin
A documentary released in 2014 The Rise and Rise of Bitcoin
This is calculated by the number of in transaction for the wallet multiplied by something like 180 plus the number of out transactions for the wallet multiplied by something like 34. So getting bitcoins paid adds more to the fee then paying with bitcoins.
Then the bytes values of the transaction get multiplied by a value called satoshis that its network dependent : how many transactions are happening and what fees people use.
Most apps have some default values where they will use a value so that you transaction will get into the next n-th block based on some settings you input or uses some default values.
You can check satoshisvalue here : https://bitcoinfees.21.co/
How much profit can you make mining ?
(Your power / network hash power)* Coins generated per day * Coin price
Say you have 1 THash miner
1.03.2018 for Bitcoin:
(1/23.500.000)*1800*11.000 $ =~ 0.85$ / day
Minimum bitcoin transation is : 5460 satoshi or 0,05460 mBTC.
This is the same amount as the minimum fee recommended.
1 BTC = 1,000,000,00 satoshi
Why is there a minimum limit of transaction in bitcoin ?
This limit is not forced by the protocol but by a consensus between both bitcoin clients as well as miners in an effort to fight transaction spam
Altcoins
Altcoins are the alternative cryptocurrencies launched after the success of Bitcoin, as peer-to-peer digital currencies, that offer modifications in areas like transaction speed, privacy, proof-of-stake, DNS resolution and more, in an attempt to imitate that success.
https://bitcoin.org/en/full-node#what-is-a-full-node
An episode on the inside man where Morgan Spurlock buys bitcoins and tries to live one week by it : https://vid.me/gjbm/morgan-makes-cents-out-of-bitcoin
A documentary released in 2014 The Rise and Rise of Bitcoin
How is the bitcoin fee calculated ?
The value of the fee its not related to value of transferred bitcoins but by the size of the transaction in bytes.This is calculated by the number of in transaction for the wallet multiplied by something like 180 plus the number of out transactions for the wallet multiplied by something like 34. So getting bitcoins paid adds more to the fee then paying with bitcoins.
Then the bytes values of the transaction get multiplied by a value called satoshis that its network dependent : how many transactions are happening and what fees people use.
Most apps have some default values where they will use a value so that you transaction will get into the next n-th block based on some settings you input or uses some default values.
You can check satoshisvalue here : https://bitcoinfees.21.co/
How much profit can you make mining ?
(Your power / network hash power)* Coins generated per day * Coin price
Say you have 1 THash miner
1.03.2018 for Bitcoin:
(1/23.500.000)*1800*11.000 $ =~ 0.85$ / day
Minimum bitcoin transation is : 5460 satoshi or 0,05460 mBTC.
This is the same amount as the minimum fee recommended.
1 BTC = 1,000,000,00 satoshi
Why is there a minimum limit of transaction in bitcoin ?
This limit is not forced by the protocol but by a consensus between both bitcoin clients as well as miners in an effort to fight transaction spam
Altcoins
Altcoins are the alternative cryptocurrencies launched after the success of Bitcoin, as peer-to-peer digital currencies, that offer modifications in areas like transaction speed, privacy, proof-of-stake, DNS resolution and more, in an attempt to imitate that success.
How to solo mine bitcoin with vga
Get BFGminer 4.10.6 ( this one works for sure, i'm not sure exactly in what version they removed some option).
Download link here: http://bfgminer.org/files/4.10.6/
Get bitcoin core install and wait to download the blockchain - requires ~190GB of storage space [on 14.07.2018].
When you install the core chose to save the blockchain in other location then by default on C, for easier access. Put it in D:\Bitcoin if you have another partition or in C:\Bitcoin.
There you will have your configuration file: bitcoin.conf.
Note that depending on you internet connection it might take couple of days to fully download and sync to the network.
You cannot mine until the sync is completed.
Download link here: https://bitcoin.org/en/download
Now go and edit the bitcoin.conf file. If it does not exist just create one with notepad.
server=1
rpcuser=whaterver-user-you-like
rpcpassword=any-password
rpcport=8332
rpcallowip=127.0.0.1
disablewallet=1
Save and restart the bitcoin app.
Go to the folder where you unrared your bfgminer.
Create a mine.bat file to save the command so you don't have to type it every time you run it.
bfgminer -S opencl:auto -o http://127.0.0.1:8332 -u whaterver-user-you-like -p any-password --set-device intensity=9 --coinbase-addr 18Mzayw6yHve2zn1ZQkxKYnM9TcvfEF7Y2
pause
Replace the username and password with the ones you set in bitcoin core.
Go to https://www.blockchain.com/wallet and create a bitcoin wallet.
Replace the --conbase-addr with your new created wallet.
To get the address press the receive bitcoins button and you will get your address.
Run the file and I wish you good luck.
If you are lucky and win the bitcoin lottery don't forget to show your appreciation :)
My bitcoin address is: 18Mzayw6yHve2zn1ZQkxKYnM9TcvfEF7Y2
Download link here: http://bfgminer.org/files/4.10.6/
Get bitcoin core install and wait to download the blockchain - requires ~190GB of storage space [on 14.07.2018].
When you install the core chose to save the blockchain in other location then by default on C, for easier access. Put it in D:\Bitcoin if you have another partition or in C:\Bitcoin.
There you will have your configuration file: bitcoin.conf.
Note that depending on you internet connection it might take couple of days to fully download and sync to the network.
You cannot mine until the sync is completed.
Download link here: https://bitcoin.org/en/download
Now go and edit the bitcoin.conf file. If it does not exist just create one with notepad.
server=1
rpcuser=whaterver-user-you-like
rpcpassword=any-password
rpcport=8332
rpcallowip=127.0.0.1
disablewallet=1
Save and restart the bitcoin app.
Go to the folder where you unrared your bfgminer.
Create a mine.bat file to save the command so you don't have to type it every time you run it.
bfgminer -S opencl:auto -o http://127.0.0.1:8332 -u whaterver-user-you-like -p any-password --set-device intensity=9 --coinbase-addr 18Mzayw6yHve2zn1ZQkxKYnM9TcvfEF7Y2
pause
Replace the username and password with the ones you set in bitcoin core.
Go to https://www.blockchain.com/wallet and create a bitcoin wallet.
Replace the --conbase-addr with your new created wallet.
To get the address press the receive bitcoins button and you will get your address.
Run the file and I wish you good luck.
If you are lucky and win the bitcoin lottery don't forget to show your appreciation :)
My bitcoin address is: 18Mzayw6yHve2zn1ZQkxKYnM9TcvfEF7Y2
