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How does Bitcoin
mining work?

Because Bitcoin is not overseen or regulated by a central authority, it is the Bitcoin miners are responsible for verifying transactions. They compete for a chance to add a block of transactions to the chain by solving complicated math problems. The miner that does this fastest adds the next block of transactions to the blockchain. However, more than 50% of the miners have to reach a consensus agreeing that the block of transactions is actually valid

Every block contains a hash — a string of numbers and letters — that ensures the corresponding block has not been tampered with. The hash of the previous block is integrated into the new block, creating an unbreakable chain. This makes it hard for anyone to change the data in one block without altering the information in the other blocks. Modifying the data in all the blocks is a virtually impossible task. The hash value must be below the target value set by the hash algorithm. If the generated hash value is too large, it is generated again until it is below the specified target value

The hash process is designed in such a way that it becomes increasingly difficult to solve math problems over time. This means miners have to acquire more powerful mining equipment to improve their chances of getting the block reward

Bitcoin miners are rewarded for their work in BTC and the reward is halved every four years. Bitcoin mining, therefore, performs four tasks: verifying Bitcoin transactions, adding more Bitcoin into circulation, securing the network, and incentivizing more Bitcoin mining

The computing power required in Bitcoin mining today means that access to powerful computers and large amounts of electricity is essential. In the early days, Bitcoin mining could be carried out by individuals on individual computers. However, as the mining difficulty level grew, individual computers could not mine Bitcoin lucratively. This led to the adoption of unique mining hardware known as Application-Specific Integrated Circuits (ASICs) in Bitcoin mining