In this article, you will learn what is blockchain mining. Nobody does anything without a reason, and when it comes to Technology, you would do something either because it is fun and interesting, or because you get some profit out of it. In this blockchain and Web3 technology age, blockchain mining comes in.
What is Blockchain Mining?
Blockchain Mining is a process used to validate new transactions. Different Blockchain implementations use different methods for validation. In this blog, I will explain an example of Bitcoin Mining. When a new Blockchain transaction happens, before adding these transactions to the Block, all the Miners participating in mining are given a mathematical problem. This mathematical problem is a difficult problem based on the hash algorithm which is solvable only by Brute-force.
The only way to solve this problem is to check for each possible solution to see if it is right, no shortcuts work. Finding the solution doesn't require intelligence, it just requires faster computational speed. The solution to the mathematical problem is called Proof -of-Work. The Proof-of-Work, as the name suggests is the proof that the miner has spent the time and resources to find the solution. As mentioned previously, Blockchain mining requires a lot of resources. And for spending the time and resources for this, the miner receives a reward called Mining reward.
How does Blockchain Mining work?
Blockchain Mining is mostly impossible with normal Desktop and it requires special hardware that has faster computational speed. There are two ways that mining happens: Individual Mining and Mining Pools.
-Individual Mining
Here, each miner will set up the hardware and register itself for mining. When new transactions happen, all the miners in that Blockchain network receive a mathematical problem. The miners' hardware starts working on finding the solution for it. The first miner to find The solution informs all the other miners that he has found the solution. The other miners then verify it to avoid false validation of the Block. Once the solution of the miner is verified, the miner gets the reward and the transactions are added to the Blockchain .
-Mining Pool
Sometimes, a single miner does not have enough resources to mine the Blockchain. In such cases, a group of miners come together to form a Mining Pool. These miners combine their resources to mine the Blockchain faster. Similar to Individual Mining, the Mining Pool gets the problem and on successfully solving it, they get the reward. This reward is divided among the miners depending on how much resources they have contributed.
Bottom Line
This is how Blockchain mining happens and miners get rewards. This article is about what is blockchain mining and how does blockchain mining work.
