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The big difference with Bitcoin is that it is decentralized. If there is no central government regulating it, kaupa bitcoin mining , then how do we know that the transactions are accurate? What is Bitcoin Mining? One of the most common analogies that people use for Bitcoin is that it's like mining gold. Just like the precious metal, there is only a limited amount there will only ever be 21 million bitcoin and the more that you take out, the more difficult and resource intensive it is to find.
Apart from that, Bitcoin actually works quite differently and it's actually quite genius once you can get your head around it. One of the major differences is that mining doesn't necessarily create the bitcoin.
Bitcoin is given to miners as a reward for validating the previous transactions. So how do they do it? Bitcoin mining requires a computer and a special program. Miners will use this program and a lot of computer resources to compete with other miners kaupa bitcoin mining solving complicated mathematical problems. About every ten minutes, kaupa bitcoin mining , they will try to solve a block that has the latest transaction data in it, using cryptographic hash functions.
A cryptographic hash function kaupa bitcoin mining an essentially one-way encryption without a key. It takes an input and returns a seemingly random, but fixed length hash value. If you change even one letter of the original input, a completely different hash value will be returned. This randomness makes it impossible to predict what the output will be.
Because it is practically impossible to predict the outcome of input, hash functions can be used for proof of work and validation. Bitcoin miners will compete to find an input that gives a specific hash value a number with multiple zeros at the start.
The difficulty of these puzzles is measurable. However, they cannot be cheated on. This is because there is no way to perform better than by guessing blindly. The aim of mining is to use your computer to guess until it comes up with a hash value that is less than whatever the target may be, kaupa bitcoin mining.
If you are the first to do this, then you have mined the block normally this takes millions and billions of computer generated guesses from around the world. Kaupa bitcoin mining wins the block will get a reward of The winner doesn't technically make the bitcoin, but the coding of the blockchain algorithm is set up to reward the person for doing the mining and thus helping to verify the blockchain.
Each block is created in sequence, including the hash of the previous block.