Step by Step BTC Review | PART01 | Everyone should Know about the Bitcoin Network | CryptoMania

in #bitcoin3 years ago


Bitcoin Network may be a peer-to-peer network that's operated through cryptanalytic protocols. Users use Bitcoin crypto carnation case code and exchange bits of coins through the digital electronic messaging method. Transactions square measure recorded in a very distributed, reprinted public information referred to as Blockchain and a consolidation is achieved within the proof of mining proof of labor protocols. Bitcoin Designer Satoshi Nakamoto claims that the project was started in 2007, as Bitcoin style and writing was free in 2007, as free supply code.
The Bitcoin network needs a borderline framework for sharing transactions. A special-decentralized network of volunteers is enough for that. Messages square measure promoted on the premise of most effort. Nodes will choose of the network as desired, may be re-connected. when reconnection, a node checks and downloads new blocks of different nodes to complete native copies of the blockchain


A bitcoin can be expressed as a sequence of transactions signed in digital means, starting from the birth of bitcoins as a prize for the block. Bitcoin owners are required to hand over Bitcoin to the next owner through the digital signature of BITAKAYAN TRANSACTION, in order to authorize bank checks in general terms. One recipient can check each transaction made for verification of ownership chain. However, bit checks like the general check approval are not reversible, due to which the risk of chargeback fraud is eliminated.
Although each bite can be handled separately, it requires a different transaction for each bite in any transaction, it becomes a complex process. Therefore, there may be multiple inputs and outputs in one transaction, so that bitcoin can be separated and re-integrated. In general transactions, there will be a single input from a previously traded transaction or there may be some inputs in the form of small transactions in the previous one. And the output will be two- one for repaying, the other to send back the retail money (if needed) to the sender. The difference between the transaction's input and the total amount of the quantity goes as a transaction fee to miners.
Number of Bitcoin Transactions per Month (Logarithmic Scale)

Bitcoin uses a "proof of work network" to create a distributed timestamp server as a peer-to-peer network. This work is often called Bitcoin Mining. The signature is not available, but the signature is found out. This process is intensely related to energy. More than 90 percent of total expenditure is spent on electricity for miner management. In order to operate an information center for Bitcoin Mining in China, it requires a maximum of 135 megawatts of power.
The original invention of Satoshi Nakamoto was the need to prove proof of work to provide a signature for Blockchain. There is a block in the mining process, which provides a smaller number than the target of the given difficulty when having hash twice with the SHA-256. Where the required average amount of work increases in the opposite proportion of the target, then a hash can be verified by launching around dual SHA-2556.
To reduce the difference between incomes from a miner, the power of the computer is often gathered or submitted ("pooled"). Each mining rig has to wait a long time to ensure transactions and payments made. When the participating server can solve a block every time, all miners participating in a pool pay the money. This money is given based on the amount of work done by each miner to find that block. Bitcoin data centers generally spread out of the public eye and spread around the world, and there is also the tendency of being surrounded by centers around low-cost electricity areas.
Bitcoin can be found to be valid for a timestamp network by increasing one of the numbers of times it can be used. As long as the hash number of the block has not been given the required number of precursors, then the value of the number is increased. Once the hash process returns a valid result, the block cannot be changed until the task is re-executed. After the blocks are chained with it, the next one is to work again to change the blocks.
The most consensuses are expressed in Bitcoin with the largest chain, and the maximum effort is required to create this chain. If the majority of the power measurements are controlled by the proper node, then the number of honest chains will also increase rapidly and it will surpass any competitive chain. To change any of the previous blocks, an attacker must reproduce the block and all the subsequent blockages and work on the proper node. As soon as the block is added, the likelihood of being able to keep pace with an aggressive attacker decreases exponentially.

Bitcoin Mining is a competitive endeavor. One kind of "best weapon-winning competition" was seen through various hashing technologies used in the Bitcoin mines. In many gaming computers, FPGA and ASIC, common CPUs, the use of higher GPUs reduce the profitability of the little-specialized technologies. Specialized ASIC for Bitcoin has now become a basic way for bitcoin mining and the drop in GPU has exceeded 300x. Since bit queues have become more difficult, computer hardware manufacturers are seeing increased sales of high-speed ASIC products.

4.##Power consumption##
In 2013, Mark Gimin calculated that the cost of electricity could be 40.9 megawatts (982 megawatt-hours a day). In 2014, according to Hus Maccock, 80.7 megawatts (80,666 kilowatts) of this expenditure In 2015, according to the Economist, if all miners use modern facilities, the combined electricity costs can be 166.7 megawatts (1.46 terawatt-hours per year).
To reduce costs, Bitcoin mines have been installed in places like Iceland where geothermal energy is cheap and free of cold polar air free. Chinese Bitcoin Miners use Tibet's hydroelectric power to reduce electricity costs

The overall description of the process of mining the bitcoin:


  1. A new transaction is broadcast on all nodes.
  2. Every miner node collects new transactions in a block.
  3. Every miner node works to find a job proof code for its block.
  4. When a node finds the proof of a work, it can block all nodes.
  5. Accepting the documents validates all transactions and it is accepted only if all transactions are valid.
  6. includes the hash of the approved block and the nodes will accept their acceptance by starting the next block.

Mines made Bitcoin

The picture shows how bitcoin transactions are verified
According to the convention, the first transaction of the block is of a special kind, which produces new bitcoins owned by the owner of the block. It is considered an incentive for nodes to support the network. It also shows the way to execute new bitcoins. After every 210 million blocks, the amount of mining reward is half. It started its journey from 50 Bitcoin, at the end of 2012 is decreased to 25 and reached 12.5 bitcoin in 2016. This half-way process continues to run 64 times until the completion of the new Bitcoin.

Please Wait for 2nd Part.......To Be Continue.....

Upvote, Resteem & Reply for Stay With US click here
Thanka All Crypto Lover


Welcome to Steem @nbadolsm.

Do read A thumb rule for steemit minnows - 50:100:200:25 for starter tips.

Spend time reading Steem Blue Paper to know how Steem blockchain works and if you still have any queries ask them on our Ask me anything about Steemit post and we will try to answer that.

All the Best!!!

Welcome to Steem, @nbadolsm!

I am a bot coded by the SteemPlus team to help you make the best of your experience on the Steem Blockchain!
SteemPlus is a Chrome, Opera and Firefox extension that adds tons of features on Steemit.
It helps you see the real value of your account, who mentionned you, the value of the votes received, a filtered and sorted feed and much more! All of this in a fast and secure way.
To see why 3291 Steemians use SteemPlus, install our extension, read the documentation or the latest release : SteemPlus 2.20: Utopian + SteemPlus Partnership = Bigger upvotes.

Coin Marketplace

STEEM 0.70
TRX 0.09
JST 0.074
BTC 54727.38
ETH 4138.41
BNB 597.55
SBD 7.04