How is Bitcoin Mining Done? Full Bitcoin Mining Process
How Does Bitcoin Mining Work?
It generally takes 10 minutes to mine a single bitcoin if the miner has top class hardware and software setup. This type of setup is expensive, and only a few can afford them. It takes up to 30 days to mine a bitcoin on average.
At full capacity, it takes on average 10 minutes to mine a bitcoin. At that pace, 144 blocks are mined every day, which means around 900 bitcoins are rewarded every 24 hours. It needs 4 GB to 16 GB of RAM in the system to mine bitcoin.
Bitcoin mining works on solving a Maths puzzle which is known as proof of work (PoW) among the miners. The puzzle is not tricky as it seems. It works on guessing it right.
Mining difficulty increases in two weeks or around after 2016 blocks. It is majorly affected by the fact that how many miners are involved in the mining process because the hash difficulty increases with every new miner entering the process.
Sometimes miners don't earn a bitcoin even after solving puzzles. It happens because only the first miner or the one who got to the closest answer receives the bitcoin. This procedure is called proof of work (PoW).
Mathematical operations and problems involved in mining are not tough math, but a hash (64-digit hexadecimal number) that is equal or less than the target number. So basically, it is guesswork. In recent times, there is one in 16 million chances of guessing the hash correctly.
64-Digit Hexadecimal Number (Hash)
A hexadecimal number consists of numbers and letters. For example - 000000000547545ea4e4e5e4d5dfa10d1b5df4fcabd0ead2a45b1e2c04a4d5ea
Hexadecimal means to arrange a number in 16 different ways, but since it has only ten numbers ( 0, 1, 2, 3, 4, 5, 6, 7, 8, 9), the alphabetical digits are also involved in the process, which are a, b, c, d, e, f.