Tuesday, July 15, 2014

How do Bitcoin mining

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Bitcoin to be scattered in the wilderness world of the Internet, as many as 21 million restricted Bitcoin. Approximately 11 million coins already owned by those who from the beginning to join in the Bitcoin network, so there are still 10 million more to be mined coins. Looking Bitcoin is similar to mine gold, because that's the term used to refer to mining or digging activities seek Bitcoin. Of course, we will not use the hoe and hammer to mine Bitcoin. All it takes is a computer and an internet connection to get Bitcoin.

How do Bitcoin mining

[menambang%2520bitcoin%255B5%255D.jpg]In the Bitcoin system, there is no central computer that records all transactions that take place, in which the computer must be turned on continuously. Therefore, the system offers a Bitcoin Bitcoin reward or gift of computers to anyone who wants a record of all transactions.

These records include:

A man who gives Bitcoin serial number XYZ to B
Person B who spend Bitcoin XYZ series to C
And so on.
Of course, not all computer recording transactions, which will be awarded prizes Bitcoin. To that end, bitcoin system in order to perform a kind of race there is one winner will qualify for the Bitcoin for the record. The competition is, all computers should randomize ticker row of letters into a number using a special algorithm SHA-256. Rows of letters should consist of a combination of the encrypted hash value (random letters) from the previous Bitcoin transaction, plus the latest Bitcoin transactions hash value, plus a nonce (random number between 1-2256), which will produce a 64-digit number. Who would result in a figure below the target set by the system, are entitled to Bitcoin. Conversely, if the target figure gives the figure above, are not eligible for Bitcoin, and will be given another number, the above process is repeated again. Total wages Bitcoin itself depends on the growing conditions. For the current wage is 25 Bitcoin is automatically removed by Bitcoin software every 10 minutes or so.



Now it has been sold or software tools to increase the ability of a computer algorithm, from millions to hundreds of millions of prices, ranging from shaped casing for USB to PC. To obtain this tool and how to use, pretty to look through search engines or through the forums on the internet.

One example is the locally made tools miner Red Fury, measuring 6x3 cm and shaped USB. The Red Fury units sell for around Rp1, 5 million. How to use it is, first you have to download the software bitcoinqt and install the software into your computer. Then you just insert the tool miners 'Red Fury' into the USB slot, and let the computer you are working 24 hours a day.

Value of the target is a 256-bit number that is shared by all members of Bitcoin network. This value is automatically transformed itself from being too easy or too difficult and is expected to be unbeaten in the duration of 10 minutes (despite that fact could be faster or slower).

Computer speed becomes important because it affects the number of digits that can be processed. Take for example, you have a computer class cricket can only boot Windows up to 5 minutes. This kind of computer is still able to process randomize hash and nonce Bitcoin, but perhaps only one combination per minute. While your computer is super fast friend can process up to 100 numbers per minute. That is, the possibility of super-fast computers to get Bitcoin or be a winner, 100x greater than the crickets classroom computers.

However, fate was also influential here. If good hockey, cricket computer could process the numbers and directly below the target value. While the super-fast computer that can process 100 numbers, but nothing below the target value.

Specifications "super fast computer" has also been changed. Two years ago, a computer with a graphics card AMD has been fairly super fast. But now comes the computer types ASIC whose job is solely to calculate the SHA-256 algorithm. Competition is getting tougher as Bitcoin popularity. Owners of large capital funds poured more eager to get Bitcoin. One example is the Hong Kong Asicminer build container vessels covering computer contains hundreds of blade servers.

Despite the increasingly keen competition, there is still hope if you intend to try to mine Bitcoin. You can join a mining pool service that collects aka computer capabilities of all those who belong to the service. Ease of service like this is the ability of your computer merged with someone else's computer, so the chances of winning become larger. But the rewards obtained must also be divided, so do not be surprised if you only get 0.000001 BTC per month.

Well now you have to weigh whether the benefits are worth the cost of electricity your computer that constantly flame, weeks, even months, plus the cost of the internet connection that you spend.

Bitcoin system will cut half the wages of a winner every time created 21 thousand coins. That is, currently 25 BTC reward, but if a day has created 21 thousand coins, its value dropped to 12.5 BTC. After it became 6.25 BTC, BTC 3.125, and so on. Declining wages to 12.5 BTC is expected to occur in 2017. Though declining wages, the value of Bitcoin is likely to further increase.

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