During mining, the computer executes a cryptographic hash function (two rounds of SHA256). The so-called block header. For each new hash, the mining software uses another randomly generated number for the block header. This number is called Nonce. Depending on the nonce and everything else contained in the block, the hash function creates a hash like this:
You see this hash is a pretty long number. (It's a hexadecimal number, which means the letters A-F are numbers 10-15). To make the mining difficult, there is still the target difficulty. To create a valid block, the miner must find a hash that is smaller than the target difficulty. For example, let's say the target difficulty is
Any number starting with a 0 would therefore be smaller than the target difficulty. e.g .:
If we now set the target difficulty
reduce, we now need two zeros at the beginning to be smaller than them:
Because the target difficulty is such a long number, you usually use a smaller number to indicate the target difficulty. This number is called Mining Difficulty. The mining difficulty illustrates how much harder it is to create the current block over the first one. A difficulty of 70,000 means that the current block requires 70,000 times more work than Satoshi Nakamoto needed to make the first block. To be fair, it must be said that mining was much slower and less optimized at that time.
The difficulty is adjusted to all 2016 blocks. The network is trying to adjust the difficulty so that it takes about 14 days to make 2016 blocks with the performance of the entire network. Therefore, as the performance of the network increases, the difficulty also increases.
In the beginning, "mining" with a CPU was the only way to mine bitcoins. This cleared the way for mining with a graphics card (GPU). The fact that graphics cards can calculate the work in parallel led to a 50 to 100-fold increase in mining performance, while power consumption for a MHash declined compared to the CPU.
Theoretically, any GPU can be used for mining, but it turned out that AMD's GPUs were superior to those of nVidia for mincing bitcoins. At the time, the ATI Radeon HD 5870 was the most cost-effective solution.
For a comprehensive list of graphics cards and their performance for mining, see the Bitcoin Wiki: Mining hardware comparison
After the transition from the CPU to the GPU, the use of Field Programmable Gate Arrays (FPGA) as the main mining platform was soon heralded. FPGAs did not cause a 50 to 100-fold increase in the rate of ashing when switching from CPU to GPU, but represented a major step in improving energy efficiency
A typical 600 MH / s graphics card has a consumption of about 400 watts, while an FPGA with a hash rate of 826 MH / s only needs 80 watts. This represents a five-fold increase in energy efficiency. Energy efficiency is an important component of the profit, which led many people to use FPGAs instead of GPUs.
The bitcoin mining weld is currently in transition to the Application Specific Integrated Circuit (ASIC). An ASIC is a chip with an electronic circuit that is made only for a very specific job. Unlike FPGAs, ASICs can not do any other work. An ASIC built for mining bitcoins can and will always mine only bitcoins.
The fact that an ASIC can only do such specific tasks resulted in a 100-fold increase in the rate of ashrra, while power consumption dropped sharply relative to the previous generation. The device from Butterfly Labs, for example, has a 60 GH / s (1 Gigahash is 1000 Megahash, 1 GH / s = 1000 MH / s) rate with a power consumption of 60 watts. Compared to the GPU Era, this is a 100-fold increase in the rate of ashrra, while power consumption dropped seven-fold.
Unlike the previous mining hardware, ASIC is the latest generation, which will be further developed from now on. CPUs have been replaced by GPUs, which have been replaced by FPGAs, which are now being replaced by ASICs. There are currently no signs that ASICs will replace in the near future. There will be a gradual evolution of the efficiency of ASIC products. However, no one will increase the performance by 50 to 100 times or drastically reduce power consumption compared to the previous version.
The power consumption is the most important factor of an ASIC product in relation to the hashrate. In addition, the lifetime is longer than the entire history of Bitcoin mining. It is very likely that an ASIC device that is purchased today will still be energy efficient in two years time and will outperform electricity costs. The income is also determined by the exchange rates. However, one can usually say: "The higher the energy efficiency, the higher the yield".
There are two basic ways to mine: Alone or as a member of a pool.
For a pool, the profit from each block that a member generates is shared by all members of the pool. The advantage you get by joining a pool is more regular and even payouts. However, these are smaller. Mining alone will give you bigger and more irregular payouts. In the end, you're about the same.
As a new user, you can get started with Bitcoin without understanding the technical details. Once you have installed a Bitcoin wallet on your computer or mobile phone, it will generate your first Bitcoin address and you can create more whenever you need one. You can disclose your addresses to your friends so that they can pay you or vice versa. In fact, this is pretty similar to how email works, except that Bitcoin addresses should only be used once.
The block chain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain. This way, Bitcoin wallets can calculate their spendable balance and new transactions can be verified to be spending bitcoins that are actually owned by the spender. The integrity and the chronological order of the block chain are enforced with cryptography.
A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The signature also prevents the transaction from being altered by anybody once it has been issued. All transactions are broadcast between users and usually begin to be confirmed by the network in the following 10 minutes, through a process called mining.
Mining is a distributed consensus system that is used to confirm waiting transactions by including them in the block chain. It enforces a chronological order in the block chain, protects the neutrality of the network, and allows different computers to agree on the state of the system. To be confirmed, transactions must be packed in a block that fits very strict cryptographic rules that will be verified by the network. These rules prevent previous blocks from being modified because doing so would invalidate all following blocks. Mining also creates the equivalent of a competitive lottery that prevents any individual from easily adding new blocks consecutively in the block chain. This way, no individuals can control what is included in the block chain or replace parts of the block chain to roll back their own spends.
Here you can search about info for your Transaction on the Network
Block Explorer : https://blockchain.info/
More updates in work :)