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Let's say you had one legit $20 and one really good photocopy of the same $20. If someone were to try to spend both the true bill and the fake one, someone that took the trouble of looking at either of the bills' consecutive numbers would see that they had been exactly the same number, and consequently one of them needed to be false.
This isn't a perfect analogy--we will explain in more detail below. .
Once a miner has confirmed 1 MB (megabyte) worth of Bitcoin transactions, they are eligible to win the 12.5 BTC. The 1 MB limit was set by Satoshi Nakamoto, and is a matter of controversy, as some miners believe the block size ought to be increased to accommodate more data.
Note that I stated that verifying 1 MB worth of transactions makes a miner qualified to earn Bitcoin--not everyone who supports transactions will get paid out.
1MB of transactions can technically be small as 1 transaction (though this is not in any way common) or a few thousand. It depends on how much data the transactions take up.
In order to earn Bitcoin, you need to meet two conditions. One is a matter of work, one is a matter of luck.
2) You must be the first miner to reach the perfect answer to some numeric problem. This process is also known as a proof of work.
The good news: No advanced math or computation is involved. You may have heard that miners are solving challenging mathematical problems--that is not true at all. What they're actually doing is trying to be the first miner to think of a 64-digit hexadecimal number (a"hash") which is less than or equivalent to the hash.
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The bad news: Because it's guesswork, you need a lot of computing power in order to get there first. To mine successfully, you need to get a high"hash speed," which is measured in terms of megahashes per second (MH/s), gigahashes per second (GH/s), and terahashes web per second (TH/s).
If you want to estimate just how much Bitcoin you can mine along with your mining rig's hash pace, the site Cryptocompare offers a very helpful calculator.
Either way a GPU (graphics processing unit) miner or an application-specific integrated circuit (ASIC) miner. These can run from $500 to the tens of thousands. Some miners--particularly Ethereum miners--buy individual graphics cards (GPUs) as a low-cost way to cobble together mining operations. The photograph below is a makeshift, high-tech mining machine. The graphics cards are those rectangular blocks with whirring circles. Note the sandwich twist-ties holding the graphics cards to the metal pole.
Example: I tell three friends that I'm thinking of a number between 1 and 100, and that I write that number on a piece of paper and seal it in an envelope. My friends don't have to guess the exact number, they just have to be the very first person to figure any number that's less than or equal to this number I'm thinking of.
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Let us say I am thinking about the number 19. If Friend A guesses 21, they lose because 21>19. If Friend B supposes 16 and Friend C guesses 12, then they have both technically came at workable answers, reference since 16<19 and 12<19. There is no"extra credit" for Friend B, even though B's answer was nearer to the target answer of 19. .
In Bitcoin terms, simultaneous answers happen frequently, but in the end of the day there can only be one winning answer. When multiple simultaneous answers are presented that are equivalent to or less than the target number, the Bitcoin network will decide by a simple majority--51 percent --that miner to honour. Typically, it's the miner who has done the work, i.e.
Getting The 20000 Satoshi To Work
The number preceding has 64 digits. Easy enough right here to understand so far. As you likely noticed, that number consists not only of numbers, but also letters of the alphabet. Why is that
In order to understand these letters are doing in the middle of numbers, let's unpack the term"hexadecimal."
As you knowwe utilize the"decimal" system, which means it's base 10. This in turn means that every digit has 10 chances, 0-9.