What is Bitcoin or BTC and how it works?

What is Bitcoin and how it works

Bitcoin (btc) is a digital currency that can be used to buy and invest. Recently, the bitcoin farm, currency code, training, price and extraction of bitcoin have attracted the attention of many people.

 

 

What is Bitcoin?

Bitcoin is a type of cryptocurrency or digital currency, that operates decentrally across the Chinese blockchain network. This currency is obtained in the form of digital codes with very complex mathematical calculations, and this has made it have monetary value. To extract this currency code, special devices are used that have very high power consumption and therefore many countries do not find it economical to produce them.

Bitcoin is the first and in fact the most well-known of the existing cryptocurrencies, first introduced in 2008 by a person or group called Satoshi Nakamoto with the aim of safely storing and transferring money to the world. It should be noted that the identity of Satoshi Nakamoto is still unknown.

One of the features that makes bitcoin popular is that it has all the features of real money, such as the ability to buy, invest, transfer value, etc., except that because it is decentralized, it is controlled by no government or organization. It is not special and as a result all intermediaries in transactions with this currency code have been eliminated. On the other hand, due to the use of very complex mathematical processes in extracting these digital currencies, they are much safer than common currencies and have a much higher degree of security. They enjoy.

 

Bitcoin prices

fluctuate a lot with their fluctuations. These fluctuations can make investors rich or, conversely, blow them away overnight.

 

Benefits of Bitcoin

As mentioned earlier, bitcoin, as well as all existing digital currencies, have unique features that make these currencies superior to real currencies, such as the following:

Decentralization: Decentralization means that it is not overseen by any organization or government and does not require an intermediary or third party to approve transactions using Bitcoin or other digital currencies.

Ease of the transaction process: Due to the lack of a regulatory body, the lack of strict and complex rules for trading, complete transparency of the market and its information, as well as the lack of ownership of this market, trading with Bitcoin or other digital currencies is much easier than Real markets.

High security: Bitcoin is not actually a physical equivalent and is made only of digital passwords that people can provide their activities in the digital market by providing these passwords, extracting these passwords is very complex and difficult and its codes are not accessible in As a result, it is almost impossible to cheat or make duplicate transactions in the digital currency market.

Anonymity of individuals: One of the special features of Bitcoin is the anonymity of the identities of the two parties to the transaction for each other, which makes it almost impossible to track the people who make these transactions.

Easy to move: Because bitcoin is a digital currency and has no physical existence, it is much easier to transport than real-world currencies.

Non-taxation: Because bitcoin and other digital currencies are not currently fully recognized by any country, and governments do not yet know how to deal with these currencies, operating in this market is now taxable. And is a great place to do great deals.

Irreversibility of transactions: Since the identity of individuals in bitcoin transactions is completely unknown, it is not possible to return or change it if another transaction is registered. Due to this feature, it is recommended that you be very careful when making this type of transaction and make sure that the other party’s wallet information is correct, because if you make a mistake in the transaction, it is not possible to return or change the transaction.

 

What is the purpose of bitcoin mining?

Of course, in order to be able to receive bitcoins by checking the validity of transactions, you must have two conditions, one of which is the result of your efforts and the other is the result of luck. To do this, you need to confirm the validity of 1 MB of bitcoin transactions, and this is an easy part. But the second part about luck is that you have to be the first miner to get the correct answer to a numerical problem. This process is known as “Proof of Work”.

You do not need to know complex mathematics or calculations to solve the numerical problem we mentioned. You may have heard that miners solve complex mathematical problems, but this does not accurately state the truth. In practice, miners strive to be the first to reach a 64-digit hexadecimal number called a hash. This actually involves more of a guessing process.

The bad news is that this calculation requires a lengthy guessing process, the total number of guesses is in the trillions, and it is very difficult. In order to be able to solve a problem as the first person, you have to use a lot of computational power. To successfully mine, you must have a hash rate of MH / s, GH / s, or TH / s; These numbers are a large volume of hashes.

 

 

 

What is Bitcoin Miner?

bitcoin mining, is a voluntary activity in which volunteers, called miners, give the network the processing power of their mining devices to verify network transactions.

How to extract bitcoins

Miners do not extract bitcoins for the sake of God, but receive a reward for it, and this reward is the same bitcoin. In other words, when you send bitcoins to your friend, Miner helps verify your transactions with its activity and the network rewards it.

So in mining, three main tasks are performed, which are to approve bitcoin transactions, maintain bitcoin network security, and generate new bitcoin units in a decentralized manner.

The explanation we gave was in simple language so that you could understand mining more easily.

 

Bitcoin mining technically

Perhaps when you hear the term “bitcoin mining“, you imagine the coins being pulled out of the ground; But bitcoin is not physical; So why call it mining?

Because bitcoin mining with a miner is not philosophically dissimilar to gold mining; In such a way that bitcoins exist in the design of bitcoin code and protocol (like gold found in mines) but are not yet available (like gold that has not yet been mined); According to the protocol or the rules of Bitcoin, there will be only 21 million units of it. Like gold, which is scarce and limited.

The more scientific name of mining is Proof Of Work; In fact, the extraction process originated from an algorithm called proof of work, which was first used by Adam Back in his anti-spam system, called HashCash.

Spam attacks on computer systems were common in the early 1990s. Spam attacks mean sending useless messages and requests to the system to slow it down. In order to prevent spammers from sending useless messages, Adam Beck invented the requirement that users had to perform a series of mathematical calculations with their computer that required CPU consumption to send the message. This would have to have a lot of processing power if it wanted to send spam messages to the system, which would require power consumption.

Proof of work actually means that bitcoin miners or miners are doing something to gain access to bitcoin. Miners are rewarded by generating blocks of valid transactions and connecting them to the blockchain.

 

What is Ninety Bitcoins? (NOD)

First of all we have to talk about nodes; A node in a bitcoin network is a powerful computer that runs bitcoin software and helps maintain the work of the bitcoin network by participating in data transfer.

Anyone can run a node by downloading free Bitcoin software, allocating power, and downloading the entire blockchain transaction history (currently around 200 GB). Nodes distribute transactions throughout the network.

Some nodes have special conditions called mining nodes; In the early days of Bitcoin, all nodes were miners, but today mining nodes are different from purely valid nodes; Miner nodes, which have a lot of processing power, collect bitcoin transactions in packages called blocks and then connect them together to form a blockchain.

Bitcoin mining fever is very hot these days; The emergence of the mining industry and its new form of revenue generation has made everyone eager to know how to do this activity. Follow the complete bitcoin mining tutorial.

 

Bitcoin Mining

To put it simply, Bitcoin is a decentralized currency and network and is not affiliated with any particular country or company. Decentralization means that no one owns the Bitcoin network and no one can control it alone. Anyone anywhere in the world can become a part of it by connecting to the Bitcoin network.
Bitcoin Mining Tutorial

In order to maintain network stability and to prevent all bitcoin units from being extracted quickly, there is a standard in bitcoin called extraction difficulty; Bitcoin blockchain blocks are generated every ten minutes; If the processing power of bitcoin miners is too high, it means that miners may be able to generate blocks and extract bitcoins in less than ten minutes.

For this reason, the extraction difficulty increases until it takes ten minutes to reach the solution of the equation; On the other hand, if the processing power of the miners decreases, that is, the block build time may be less than ten minutes, so in these cases the difficulty is reduced to reach the same ten minutes again.

Also, once every four years, during an event called halving, the amount of bitcoins produced suddenly halves, increasing the scarcity of bitcoins; The number of bitcoins mined is limited to 21 million units, after which bitcoins will no longer be produced.

Currently, 12.5 bitcoins are produced every ten minutes, which will be reduced to 6.25 after the next hawing in May 2020. More than 18 million bitcoins have been mined so far; It is predicted that the extraction of all bitcoin units will take until 2140.
Bitcoin machine

To extract bitcoins, you need to provide a series of equipment. The type and number of mining equipment can vary depending on the size of the activity. For example, it is obvious that the equipment required for a large farm is different from the equipment required for a small farm. But as a general rule, to do bitcoin mining you definitely need the following:

Special extraction machine or ASIC
Bitcoin wallet
Fixed Internet (ADSL or TD-LTE)
Suitable for electricity, cables and electrical equipment
Ventilation equipment (fan)

There are many ways to earn bitcoin, such as participating in AirDrop

 

 

What is a Bitcoin Farm?

Bitcoin mining farm is decentralized without the need for a central bank and intermediaries. This currency is transferred from one user to another in the network; The construction or operation of the Bitcoin Farm was first invented by a group called Satoshi Nakamoto and was renamed the Bitcoin Farm with the introduction of this digital currency.

Bitcoin is actually a line of computer ciphers invented by very powerful computers and systems that perform very complex mathematical calculations and are now known as digital currencies and in most cases as bitcoins.

These cryptocurrencies, which are currently of great monetary value, have found a special place in today’s digital world; If anyone asks you what a bitcoin farm is? You can simply explain in a few lines that Bitcoin is a valuable digital currency that soon everyone needs to be familiar with and may have access to.

 

Bitcoin Farm Uses

The present value of the bitcoin mining farm has increased so much that it is considered equal to gold. In some businesses, bitcoin is used as a method of payment; Because no one is allowed to defraud or misuse bitcoin, many businesses use bitcoin to transfer money.
What is the main feature of Bitcoin Farm?

One of the purposes of inventing this digital currency is its independence, which has become the main and at the same time the most popular feature of this digital currency; For many people, the key to building a Bitcoin farm is that it is independent of governments, banks and global companies.

No company, individual or group can interfere in and access Bitcoin (BTC) transactions or impose transaction costs on anyone and, most importantly, take people’s money with them; In addition to the above, the Bitcoin Farm is independent of the Bitcoin movement, and the Bitcoin movement is very transparent, and every transaction that takes place is stored in a widely distributed public office called the Blockchain; All of these features have earned people the trust as well as the bitcoin farm.

Free Crypto Currency

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I have been familiar with internet business since 2006. Currently, with the advent of digital currencies, most of my work is in the field of bitcoins and digital currencies

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