Hot question- "CRYPTOMINING" .? | Sololearn: Learn to code for FREE!

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Hot question- "CRYPTOMINING" .?

how does the miner works ? is it useful ? how to create a mining algorithm ? I saw a mining program "Nicehash" is it a worthy program ?

7/2/2017 2:22:54 PM

Saurabh Sharma

6 Answers

New Answer

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Good Attempt to get self-learner Badge πŸ™€

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The miner works by utilizing and algorithm that enables it to search through every possible combination that can be found within certain parameters. They can be useful, but if you wish to break into something quickly, just brute force the system. Crypto mining can take forever to get a result. I cannot help you with the "creation" part, but there is a whole community on Stack Overflow for cryptography and cryptoanalysis. Hope this helps!

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Part 2: These individuals are called "miners", and the process of finding a valid nonce is called "mining". Once a valid nonce is found, the block is broadcasted to all other miners, and so the block becomes valid and miners collectively append the block to the blockchain. The miner who had found the nonce includes their address in the list of transactions, named as the "coinbase transaction". This miner is rewarded with all of the transaction fees from transactions they placed in the block, as well as some amount called the "block reward" (newly printed currency). There are a few things to think about mentioned in part 3.

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Part 1: I know this thread is old but it seems Sololearn is missing this information. Here is an explanation on how Bitcoin mining works. I will assume you have some understanding of a blockchain (the datastructure). This comment is broken into 3 parts. When two or more parties perform a transaction they will broadcast (publicly send) the information about this transaction to other individuals. These individuals collect transactions, grouping them together into a merkle tree. Other information is added along with these transactions, and we call this a "block". In Bitcoin there is a difficulty target, this defines how small the blocks hash must be to be considered valid. The individual should not be changing any of the information on the block arbitrarily, with the exception of one value called a "nonce". When the nonce changes, so does the hash of the block. Now, the goal is to find a nonce such that the blocks hash is smaller than this difficulty target. Until found, we keep guessing.

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Part 3: First, Bitcoin is by definition the longest valid blockchain that uses its protocol. Recall that more than one miner may be mining at the same time. This means that other miners may be faster than you at mining, and so are more likely to beat you in being the one to broadcast the new block, and append to the blockchain. In addition, miners are rewarded with transaction fees. So, miners are incentivized by their reward to accept and use transactions that have the highest transaction fees (more $) and to be faster than others in the network. Often people are not fast enough. So, 'mining pools' exist, where one authority will direct nonce values to other miners, and the mining pool will reward them for their work. In this sense, a miner is rewarded for working with the pool, rather than broadcasting to the network and appending the new block to the blockchain. The pool owner will instead be the one to append to the blockchain. This is currently a more common approach to mining.