New Delhi: Though the word ‘Bitcoin’ has become a buzzword for many in 2017, very few know about the process of mining the bitcoins.
Here are few basic points which everybody should know about how the bitcoins are generated
According to the news reported in Times of India, the process is as follows:
1. Bitcoins are generated by a mathematical formula or algorithm
2. It started with 50 coins in January 2009, the formula produces batches of new coins every 10 minutes
3. These coins can be mined by anyone to dedicate computing power
4. Miners of bitcoin use open source software to accomplish two tasks.
5. First, miners confirm the validity of new bitcoin transactions that are waiting to be recorded on a public ledger.
6. Second, the miners must decode an encrypted, unique ID, generated by the bitcoin formula, to add the confirmed records to a public ledger known as the ‘blockchain’.
7. The blockchain forms a permanent, publicly available, history of every bitcoin transaction
8. Miners rewarded for their work with new bitcoins automatically generated by the bitcoin algorithm.
9. The bitcoin formula sets a limit of 21 million coins. This limit is expected to be reached around the year 2140.