What is Bitcoin Mining and Why is it Necessary?

Unlike gold mining where you discover new gold, bitcoin mining is a valuable contribution to decentralized transaction recording and validation to the Bitcoin network. Bitcoin depends on the miners to verify and authenticate transactions that take place in the digital currency.

Bitcoin mining is a process of adding new transactions to the public ledger of existing transactions that had occurred in the past which is called a chain of blocks. In the digital technology, copying a computer file version is easy which can lead to carrying of fake transactions by fraudsters. They can try to reuse the already spent money again. If the transactions are not checked, miners will not record them and frauds if any will not be known. It is necessary because the blockchain reconfirms that the transactions have occurred and is not a resend of already spent bitcoins.

Bitcoin mining is resource-intensive and laborious. Individual blocks should carry proof of work which in turn is verified by other Bitcoin nodes whenever a block is received. Bitcoin uses the hash cash as proof of work. Miners connect to the Bitcoin network using their computers and record transaction requests across the network and collect all valid transactions.

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